NACBA Applauds Bicameral Congressional Effort to Diffuse the Student Loan Debt Bomb

NACBA Applauds Bicameral Congressional Effort to Diffuse the Student Loan Debt Bomb

WASHINGTON, May 9, 2019—The National Association of Consumer Bankruptcy Attorneys (NACBA), the only organization dedicated to protecting and enhancing the rights of consumer bankruptcy debtors, applauds the introduction of the bicameral Student Borrower Bankruptcy Relief Act of 2019 by U.S. Senators Dick Durbin (D-IL) and Elizabeth Warren (D-MA), and Representatives Jerry Nadler (D-NY) and John Katko (R-NY). The Student Borrower Bankruptcy Relief Act of 2019 reforms the federal Bankruptcy Code to restore the ability to discharge excessive federal and private student loan debt in bankruptcy. NACBA also applauds the continued bipartisan support received from Congressman John Katko (R-NY) for the discharge of student loan debt in bankruptcy. With Americans facing a growing $1.5 trillion-dollar student loan debt, this bill would help ease the weight on the student loan debt bomb to those most in need.

“We commend the introduction of this bicameral bill, and the continuous and tireless leadership of its sponsors in the House and Senate in offering relief from student loan debt to those in greatest need,” says NACBA President John Colwell. “While NACBA recognizes the complexity of student loan debt in our current economy, we also see clients daily that struggle with the growing burden of student loans. Many of these debtors pursued an education to enhance their lives and the lives of their families. Instead of getting a head start, they are now crushed by enormous student loans. This prevents them from establishing careers or family, and for older borrowers even puts retirement on hold. This burden is insurmountable for many who never overcome it. It’s time for Congress to act to diffuse the student loan debt bomb and help those who really need assistance by restoring meaningful bankruptcy relief.”

NACBA member attorneys continue to see the number of parents and grandparents of college students that took on student loan debt for their children and grandchildren grow as a result of rising college costs. This population is struggling now more than ever before. While bankruptcy is a last option for many, it may be the only option for financial relief.

According to Colwell, “America faces a financial crisis today with over $1.5 trillion in student loan debt, of which over 11% is now in default or seriously delinquent at the end of 2018. This is creating financial chaos for many—including young adults, parents, and seniors. Young adults’ futures are threatened and so is a modest Social Security retirement for seniors. Bankruptcy is a remedy of last resort that no one enters into lightly and which is available only to those who can pass rigorous tests which demonstrate that they are unable to pay their debts. NACBA praises Senators Durbin and Warren, and Representatives Nadler and Katko for addressing this important issue head-on. NACBA looks forward to working with them and their colleagues in Congress as the bill moves forward.”

NACBA encourages its members and others who see the need for student loan debt relief to contact their Senator and Congressional members’ offices and urge support of the Student Borrower Bankruptcy Relief Act of 2019.

For inquires please contact Krista D’Amelio, Director of Government Affairs & Communications.

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