Political Quotes

“Madam Chair, this amendment is very simple. It would add an explanation of how Federal and private student loans are treated in bankruptcy to the list of the disclosures contained in the underlying bill. Unfortunately, too many students lack basic financial literacy, and if they don't have a proper understanding of their rights and responsibilities when it comes to student loans, it can lead to serious consequences for their financial future. That is why I am pleased to support this legislation that Mr. Kline has offered--he has done such a good job bringing a bipartisan bill here--and the important financial counseling it requires. However, one area that is not included is an explanation of the stringent requirements we have placed when it comes to erasing your student loans in bankruptcy. While bankruptcy is never something to be taken lightly, our system does allow an honest but unfortunate debtor the opportunity for a fresh start if their financial situation is desperate enough. Most people assume that their student loans can be discharged along with their other consumer debts during bankruptcy proceedings, but that is not the case. {time} 1330 Under current law, borrowers must show that continuing to back their loans would impose an ``undue hardship'' on them and their dependents, a standard that, in practice, is nearly insurmountable. Bankruptcy law exempts very few types of debt from elimination through the bankruptcy process, but there are certain exceptions.…”