On Thursday, May 25, 2017, U.S. Senator Dick Durbin (D-IL) reintroduced legislation to help address America’s student debt crisis. The Fairness for Struggling Students Act, S. 1262, was cosponsored by Senators Sheldon Whitehouse (D-RI), Al Franken (D-MN), Richard Blumenthal (D-CT), Mazie Hirono (D-HI), Elizabeth Warren (D-MA), Jack Reed (D-RI), Ron Wyden (D-OR), Tammy Baldwin (D-WI), and Maggie Hassan (D-NH). S. 1262 would once again allow privately issued student loans to be discharged in bankruptcy.
NACBA supports Senator Durbin’s efforts to address the private student loan component of the student debt crisis, as he has done for the past several years. Restoring the bankruptcy discharge for these loans will help many struggling borrowers get financial stability back in their lives.
NACBA also recognizes that there are many more Americans buried in student loan debt who need bankruptcy relief which extends beyond the private student loan category. We are encouraged that a bill to help those borrowers has also been put forward in the House of Representatives, H.R. 2366, which currently has bi-partisan sponsorship. NACBA will continue its support of that effort as well.