Click here to email your Senator or Reps to support this--if ya want to!!!:



Borrowers with Private Student Loans Could Get Bankruptcy Relief
Hearing Today on New Legislation to Address the Issue

“We strongly support new efforts on Capitol Hill to treat private student loan borrowers more
fairly in bankruptcy. Private student loans are not discharged even when borrowers meet the
strict criteria for bankruptcy, while lenders who knowingly make unaffordable loans can simply
write off the debt. Last week bills were introduced in the Senate (S. 3219) and House (H.R.
5043) to treat private student loans like credit cards and other similar consumer debt, rather than
like criminal fines and unpaid child support.

“Today the House Judiciary Subcommittee on Commercial and Administrative Law, chaired by
Rep. Cohen, holds a hearing on H.R. 5043, the Private Student Loan Bankruptcy Fairness Act of
2010 sponsored by Subcommittee Chairman Steve Cohen and Representative Danny Davis. This
bill is supported by a broad coalition of groups representing students, consumers, and colleges,
as well as civil rights and public policy organizations.

“Private student loans are not guaranteed or subsidized by the government in any way, and they
are one of the riskiest, most expensive ways to pay for college. Like credit cards, these loans
typically have variable interest rates that are higher for those who can least afford them. They
also lack the important consumer protections and flexible repayment options of federal student
loans. Yet, under current law, private student loans are treated much more harshly in bankruptcy
than credit cards and other similar consumer debt.

“Struggling borrowers have virtually no way to make private loan debt more manageable
because lenders can simply refuse to negotiate affordable terms. People who borrowed for
college and played by the rules deserve basic consumer protections and fair treatment when they
hit hard times.”