New Bill Would Lead To Bankruptcy Discharge of Certain Student Loans

Written by Adam Peck Category: Nursing Homes January 23rd, 2013 2 min read

Trying to fund higher education is a challenge many people face, as are the effects of not being able to pay off student loans in the long run.

One aspect of student loans that make them even more difficult is the fact that they are difficult to get rid of through bankruptcy. New laws passed in 2005 made all types of student loans harder to erase through filing, although a congressman is looking to change that.

Tennessee Democrat Steve Cohen, along with fellow party member and Illinois Representative Danny Davis, have authored a bill that would bring bankruptcy rules for student loans back to the way they were. In doing so, privately originated student loans would be treated the same as other forms of debt.

Cohen said that people should not be discouraged from getting further education because of the fact that it could lead to financial difficulties, and that his bill helps with that.

“The bankruptcy system should work as a safety net that allows people to get the education they want with the assurance that, should their finances come under strain by layoffs, accidents, or other unforeseen life events, they will be protected,” says California Bankruptcy Attorney Steven C. Peck who may be contacted toll free at 1.866.999.9085.

If Cohen’s bill doesn’t pass, consumers may still have options in dealing with educational loans. One of those is debt consolidation, although people should keep in mind that private and governments loans must be handled separately.

Share it

Questions? Check with Peck Today

Blog Lead Form

Elder Abuse and Neglect in Assisted Living Facilities

Elopement in Nursing Homes

Assisted Living Abuse

Settlement Reached in Assisted Living Facility Death

Assisted Living Abuse and Neglect Attorneys

Written by Adam Peck

Expertise: Personal Injury

Adam J. Peck, ESQ is a principal with Peck Law Group, APC. In 2008, Mr. Adam Peck received his Juris Doctorate from Whittier Law School where he graduated Cum Laude. His practice is primarily dedicated to representing Elders, Dependent Adults, along with their loved ones and family members, who have suffered horrific personal injuries.