Congressional Research Service Releases Bankruptcy & Student Loans Report

Congressional Research Service Releases Bankruptcy & Student Loans Report

On Thursday, February 22, 2018 the Congressional Research Service released a report titled “Bankruptcy and Student Loans”. The report explains how and why the Bankruptcy Code makes student loans nondischargeable, unless undue hardship is proven. It concludes with providing potential considerations for Congress to treat student loans moving forward.

Click here to read the full report

1 Comment

  1. Stephen Parker

    I’m okay with student loans not being discharged. I’m not okay with them being classified as General unsecured claims in chapter 13. I believe in 20 states default on your student loan can lead to suspension of professional licenses.

    Why does the government via the UST argue against its own self interest in claiming that paying student loans ahead of other, truly unsecured debts, is prejudicial to other unsecured creditors. They clearly aren’t similarly situated. I don’t see Visa out there suspending licenses and taking away people’s ability to survive. Is there any way that student loan debt can get moved up s notch so that it can be paid without drawing the ire of the UST?

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