Political Quotes

“Unlike most kinds of debt, student loans of all types are currently nondischargeable in bankruptcy, except on a judicial finding of undue hardship. Under this amendment, government student loans, Federal and State, and loans made directly by nonprofit entities would remain nondischargeable. Other student loans made by for-profit banks and other lenders would continue to be nondischargeable for the first 5 years after they come due, but after that, they would be treated like other unsecured consumer loans in bankruptcy. This amendment also closes the loophole that lenders were beginning to pursue just before the 2005 changes went into effect. Currently, loans that are funded in whole or in part by a nonprofit institution are nondischargeable. Lenders offering private student loans were setting up affiliations with nonprofit institutions in order to take advantage of this loophole, even though the nonprofit was not the source of funding. The current law is unfair to students. Students who take out student loans are trying to better themselves and contribute to the advancement of our economy.”