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Student Loans – Impact

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What happens next?

Background:

  • Approximately $1.5 trillion owed as of June 2019
  • Far exceeds auto loans and credit card debts
  • Currently non-dischargeable
  • Been increasing $70 billion to $100 billion per year since 2006
  • Bureau of census indicates about 17.6% of American adults have student loans

Pending in Congress:

  • May 9, 2019, the Student Borrower Bankruptcy Relief Act of 2019 introduced House of Representatives #2648 and in Senate #1414.
  • Both of the above would make all student loan debt dischargeable in bankruptcy
  • Senate Bill referred to Committee on Judiciary
  • House Bill referred to Subcommittee on Antitrust, Commercial and Administrative Law

Many of my clients have large amounts of student loan debt.   If this Bill becomes law, it would help my clients tremendously.   Let’s continue to watch and see what happens next.