Hank Johnson: “Bankruptcy relief provides a critical last resort economic safety net for those in dire financial need. It gives a fresh…”

“Bankruptcy relief provides a critical last resort economic safety net for those in dire financial need. It gives a fresh start to honest and deserving debtors so they can regain their financial footing on which to rebuild a productive life, which is good for them as well as for society. My colleague, the gentleman from Illinois, seeks to restore some balance with respect to the dischargeability of certain student loans. This is an excellent measure for the following reasons: one, it ensures that predatory for-profit lenders cannot take advantage of a current provision in bankruptcy law intended to protect nonprofit institutions that make educational loans; and, second, the amendment instills some moderation with respect to the dischargeability of certain educational loans made by private sector lenders which under current bankruptcy law can be nondischargeable no matter how long ago the loan was made. So for those reasons, I urge my colleagues to support this amendment.”