The Student Borrower Bankruptcy Relief Act of 2019 was introduced to Congress on May 9, 2019 by Senator Richard Durbin. If this bill is signed into law, it would have massive ramifications for people struggling to pay off student loans. Below is an explanation of what the bill is and what it could mean for those burdened by student debt.
What is the Student Bankruptcy Relief Act?
The Student Borrower Bankruptcy Relief Act of 2019 is a simple and straightforward proposal that calls for private and federal student loans to be dischargeable, like most forms of consumer debt. Since 1976, student loans have been classified as non-dischargeable debt; the law makes exceptions for severe hardship, but those cases are extremely difficult to prove.
Non-dischargeable debts include taxes, alimony, and child support. Few people believe that student loans belong in the same category. Although the bill was introduced by Democratic legislators, it enjoys support from both sides of the aisle. Skopos Labs gives the bill a 90-percent chance of being enacted.
How Does the Act Affect Bankruptcy?
As of June 2019, student debt in America has risen to $1.5-trillion, with no signs of slowing down. Higher-education tuitions are rising and many lenders are taking advantage of that. There have even been outrageous cases, like ITT threatening students with expulsion if they do not agree to loan terms. Many graduates have a hard time making ends meet because of cumbersome student loans.
If signed into law, the Student Borrower Bankruptcy Relief Act would be an enormous boon to those struggling with student debt. People that are experiencing tremendous difficulty making ends meet because of student loans would have an opportunity to start over with a clean slate. With an estimated 44.2-million people encumbered by student debt, this proposed law is a huge game-changer.
Contact a Bankruptcy Lawyer
The bankruptcy lawyers at Lerner and Rowe Law Group are keeping a close eye on the Student Borrower Bankruptcy Relief Act. Although researchers and analysts like Skopos Labs have high hopes that the bill becomes law, there are still many unknowns. Nobody knows if the proposal will be altered, when the bill will be signed, or even if it will be signed at all.
For now, if you need a bankruptcy consultation, the attorneys at Lerner and Rowe Law Group are ready and willing to work for you. We are available by telephone at 602-667-7777 and online through our LiveChat and form features. We are also available in person Monday through Friday between the hours of 8:00 a.m. and 5:00 p.m. While bankruptcy can be a stressful process, Lerner and Rowe Law Group will do everything possible to make your experience as straightforward and uncomplicated as possible.