More individuals in the House of Representatives are voicing their opinions
on why student loan debt should be forgiven in bankruptcy. In recent months
more efforts are being made to provide Congress with more insight on how
student loan debt continues to be a huge problem.
House Democrat Naomi Jakobsson proposed House Resolution 620 which advocates
change of the bankruptcy rules by the government. Under the federal bankruptcy
code, student loan debt is a consumer debt not eligible for discharge,
unless met by strict circumstances.
Jakobbson feels most students that take out student loans do so in good
faith. Most people want their population to be educated, but at the same
time people cannot help themselves when they fall on hard times. Her resolution
recently passed on the floor but sparked debate.
House Republican Dennis Reboletti feels people may get the wrong idea about
college and assume it is a free ride. He claims he worked two jobs to
pay for his education. House Republican David Harris feels student loan
debt is being inherited differently than a house or car loan. The bank
gets the house when the mortgage isn’t paid and the
car gets repossessed by the lender.
US Senator Elizabeth Warren wasn’t happy recently when voicing her
opinion at a speech given at Suffolk University Law School. During her
speech she blasted government profits on the loans. Warren feels the burden
is crushing students. She called for an end to government profits on loan
interest, penalties for colleges with high loan default rates, and reinstatement
of bankruptcy protection as an option for student borrowers.