Bankruptcy Relief for Student Loans?

A bipartisan group of lawmakers on Thursday introduced legislation to make bankruptcy relief available for student loan borrowers.

Sens. Elizabeth Warren (D-Mass.) and Dick Durbin (D-Ill.), along with Reps. Jerrold Nadler (D-N.Y.), John Katko (R-N.Y.) and Joe Neguse (D-Colo.) introduced the Student Borrower Bankruptcy Relief Act of 2019. This Act, if passed, would treat student loan debt like other types of consumer debt.

“Long before I came to the Senate, I fought my heart out to keep student loans dischargeable in bankruptcy. But over and over again, Congress chipped away at this critical protection for student loan borrowers,” Warren said. "The Student Borrower Bankruptcy Relief Act fully restores this protection."

Nadler said in a statement in support of the Act, “Americans across the nation are facing crushing student loan debt that is preventing them from purchasing homes and living the true American dream. We must ensure that Americans are able to invest in their education and then go on to live quality lives without the cloud of rising debt hanging over their heads."

Rep. Eric Swalwell (D-Calif.) and Sens. Kamala Harris (D-Calif.), Bernie Sanders (I-Vt.) and Amy Klobuchar (D-Minn.) have co-sponsored the bill.