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Making Student Loan Debt Dischargeable in Bankruptcy

Speaking of student loan debt, there is actual constructive legislation underway. The following press release is copied from Rep. John Delaney’s (D-MD) website.

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Delaney Files Legislation to Help Americans Struggling with Student Loan Debt

Jan 22, 2015 | Press Release

Legislation means that student loans would be treated like other forms of debt

WASHINGTON – Congressman John K. Delaney (MD-6) has filed legislation to help address Americans struggling with student loan debt. The Discharge Student Loans in Bankruptcy Act (H.R. 449) would make student loans dischargeable under bankruptcy. Under current law, student loan debt is treated differently than other forms of debt and cannot be discharged.

‘Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions. While student loan debt is a complex problem that will require many solutions – increased support for grant programs, efforts to increase affordability, improved consumer education – we also need to reform our laws to help those with the absolute greatest need. Right now, there is effectively a huge student loan loophole in bankruptcy law that’s hurting real people,’ said Congressman Delaney. ‘Bankruptcy has long been an option of last resort for individuals facing an irresolvable level of debt; bankruptcy isn’t easy or enjoyable, but it’s a necessary part of our financial system. It doesn’t make sense for students with heavy debt burdens to be worse than someone with credit card, auto loan debt or mortgage debt. Every member of Congress from every state in the country has constituents who are struggling severely because of student loan debt. At the very least we should have some basic fairness in the law.’

Delaney is a cosponsor of the Middle Class CHANCE Act, which increases support provided by Pell Grants. Last Congress, Delaney voted for legislation in the House to prevent student loan rates from rapidly increasing and cosponsored the Truth in Tuition Act, which requires institutions to provide multi-year tuition and fee schedules.

According to a study done by The Institute for College Access & Success, 69% of graduates from the class of 2013 graduated with student loan debt, owing an average of $28,400.

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Support ‘The Discharge Student Loans in Bankruptcy Act’ (H.R. 449)

On their Twitter stream, Occupy Student Debt suggests taking the following action:


About The Author

JoAnn Chateau

JoAnn Chateau likes progressive politics and loves the canines. She writes fiction about an alpha Bichon named Chester, and his friends--with a dash of humor and a dab of poli-sci. JoAnn worked professionally in the Psychology and Information Science fields. Retired now, she enjoys the creative life.


  1. dancingpalmtrees

    Reblogged this on Espiritu en Fuego/A Fiery Spirit and commented:
    This would help me immensely because I don’t earn enough to pay off my student loan debts. My current job pays less than half of the job I had 8 years ago. Plus now that I’m older and less than 5 years from retirement I need relief so I can have a worry-free retirement.

    • JoAnn Chateau

      You have a lot of company!

      The economy, job market, and student loans have really changed over the years. Big Money has been quietly rigging the rules.

      Thanks for sharing this post!

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