Currently both houses of Congress have legislation pending that might affect the student loan community, including one bill sponsored by Memphis area Representative Steve Cohen.
These new laws working their way through Congress would allow you to discharge overwhelming private school loans through bankruptcy. Up until bankruptcy laws changed in 2005, privately-backed student loans were not specially protected in the case of bankruptcy, which meant they fell in the same category as credit card debt and other unsecured credit. Bankruptcy attorneys like us could help if you came to our office with outstanding private loans.
As the law stands now, student loans can follow you around for the rest of your life. Perhaps these bills will provide some protection again for students who take on too much debt for college, and allow people to get a fresh start from crippling education costs.
(Photo by Sanja Gjenero)