Background: How much student loan debt?
- Approximately $1.5 trillion owed.
- 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 https://www.congress.gov/bill/116th-congress/senate-bill/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 educational loan debts. If this Bill becomes law, it would help my clients tremendously. Let’s continue to watch and see what happens next.
In bankruptcy, student loan debt is looked at case by case: https://njbankruptcylawfirms.com/student-loans-can-be-dischargeable-in-bankruptcy-case-by-case-basis/
