President Obama’s student loan proposal has taken a back seat to new pressing issues that face the country. The conflict in Syria, and now the government shut down and debt ceiling debate, have curbed current efforts to tackle this continuing issue.
Congress’s inability to work together may be casting a shadow on any attempts to reform the broken Student Loan system. The President’s proposal included expansion on income-based repayment, and a “race to the top” provision, which requires congressional action. Not included in the proposal was an expansion on bankruptcy laws that would allow a discharge through the bankruptcy process.
In 1970 restrictions were put on the dischargeablilty of student loans to prevent law and medical students from discharging the debt immediately upon graduation. Then in 2005 the laws were expended and also included private student loans as well as public student loans.
With out the ability to discharge student loans in bankruptcy, this is placing a huge burden on consumers all across the country. Student loan debt is growing rapidly and there have been few proposals to solve the problem.
If you have questions about your student loan debt or about bankruptcy, the experienced attorneys at the Fears Nachawati Law Firm can clarify and resolve any questions or issues you have on these sometimes confusing items. For a free consultation, contact our office at 1.866.705.7584.