Durbin: Private student loans harken back to ‘Dickens’ era
Yesterday Sen. Dick Durbin (D-IL) renewed his call for student loan bankruptcy reform by making a speech on the Senate floor. From the speech:
How can it be that the deck is so stacked against students who borrowed to go through school? How can “certainty of hopelessness” be the standard for borrowers to obtain any relief in bankruptcy court. This harkens back to the debtors prisons of Europe and England. Charles Dickens would have a ball with this standard.
Congress needs to address this issue. Right now there is $150 billion in outstanding private student loan debt that is crushing many borrowers–$150 billion. I have a bill, the Fairness forStruggling Students Act, that would once again permit private student loans to be discharged in bankruptcy as they were before 2005. Mark my words, there is no good reason why private student loans should be treated differently in bankruptcy from any other type of private unsecured debt.
I explained why this is a very necessary reform in a piece I wrote for The Nation in September.