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Category Archives: New bill

Medical debtors’ student loans the subject of new Senate bill

Another bill has been introduced that would allow student loan debt to be discharged in bankruptcy under certain circumstances.  Debtors who were driven into bankruptcy by medical debt or lost income due to the medical problems of a relative would be eligible for student loan debt forgiveness under a new bill that has very little chance of being passed.

The new bill, called the Medical Bankruptcy Fairness Act of 2014, is being co-sponsored by Senators Sheldon Whitehouse and Elizabeth Warren.  Senator Warren is known for her crusading on behalf of those with high medical debt as well as those with high student loan debt, so this bill addresses two of her big concerns.  Unfortunately, there is almost no chance that we will see this bill passed into law, as the political support for such a proposal is just non-existent at this time.

Private student loan discharge in bankruptcy proposed in new bill

Senator Tom Harkin has proposed a bill to make private student loans dischargeable in bankruptcy and to automatically enroll people who owe student loans in income-based repayment.  Harkin’s bill, called the Higher Education Affordability Act, contains many other proposals that are less helpful to people who owe student loans now or who will in the future.  As… Continue Reading

Is student loan refinancing on its way?

          Sen. Elizabeth Warren, a champion of consumer rights, has introduced a new bill that, if passed into law, would allow people to refinance Federal or private student loan debt, similar to the way people can refinance mortgages or car loans.  Refinancing student loans would help if interest rates on student loans drop.… Continue Reading