Sen. Dick Durbin wants student loan borrowers to have option of filing bankruptcy for loans
SPRINGFIELD, Ill. - An Illinois lawmaker is asking Congress for additional help when it comes to student loan debt.
President Joe Biden's plan will forgive up to $20,000 in student loans, and now, Sen. Dick Durbin wants borrowers to have the option of filing bankruptcy for the rest.
Unlike most other types of debt, student loans are not dischargeable in bankruptcy — except in rare cases.
Speaking on the Senate floor Thursday, Durbin called for immediate action.
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"We’re not going to allow [students] to discharge it in bankruptcy — It ultimately means that for those who borrowed money to go to school and college when they were 19 or 20 years old, they would have a debt that they had to pay back or carry to the grave," said Durbin.
The Fresh Start Legislation would restore the ability for struggling borrowers to seek a bankruptcy discharge for federal student loans after waiting a period of ten years.