Home News Lawmakers Reconsider Bankruptcy for Student Loans – Inside Higher Ed

Lawmakers Reconsider Bankruptcy for Student Loans – Inside Higher Ed

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Democrats on the House Judiciary Committee put a renewed focus in a hearing Tuesday on whether student borrowers should have access to bankruptcy relief.

Restrictions passed in 2005 blocked both private and federal student loan borrowers from discharging their debt through bankruptcy. But the growing volume of student debt and the issue’s salience as a campaign issue has fueled interest in legislative solutions like access to bankruptcy.

Rep. Jerrold Nadler, a New York Democrat and the committee’s chairman, has introduced legislation along with Sen. Richard Durbin, an Illinois Democrat, called the Student Borrower Bankruptcy Relief Act that would eliminate current restrictions on student debt in the bankruptcy code and treat student loans like other types of consumer debt.

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