By now most of our Escondido readers have heard about the looming problem that exploding student debt obligations presents to our country. Beyond that, many also know that student loan debt cannot be discharged in a personal bankruptcy action either, leaving few, if any, options for individuals drowning in this type of debt. After all, if an Escondido resident finds themselves plagued by almost any other type of debt, especially something like credit card debt, they know that filing for bankruptcy can be a solid option to get the debt discharged in order to begin to rectify an individual or family financial situation. So, are there any options for addressing student loan debt?
Well, according to one recent article, legislators in the United States Congress will again attempt to get a law passed that would allow at least private student loans to be discharged in a bankruptcy action. This renewed attempt comes in the wake of another proposition that at least seemed to have a bit more support: allowing student loan debt holders to refinance these loans to lower rates. This notion, which for a time seemed to be garnering quite a bit of support, ended up dying in the legislative process.
Only time will tell whether or not the renewed effort to allow student loan debt to be discharged in bankruptcy will have more success a second time around. However, as more lawmakers and citizens alike become more acquainted with just how great a risk the student loan debt problem could become for our country, most people would probably expect at least some type of action from the state and federal governments.
Millions of Americans are currently looking for a debt solution for their own financial circumstances. Filing for bankruptcy can help with many types of debt burdens, and in time student loan debt may be added to the list.
Source: Consumerist, "Expected Bill Would Allow Private Student Loan Debt To Be Discharged In Bankruptcy," Ashlee Kieler, June 25, 2014