Dems Want Private Student Loan Discharges In Bankruptcies

Law360, New York (January 24, 2013, 3:00 PM EST) -- Democratic senators said Wednesday that they planned to introduce legislation that would allow borrowers to discharge private student loans in bankruptcy, a move that comes as the industry receives heightened scrutiny from federal regulators.

The Senate's number two Democrat, Sen. Dick Durbin of Illinois, said the measure was necessary as the total volume of student debt in the U.S. economy continues to balloon while the U.S. Consumer Financial Protection Bureau puts a spotlight on some of the private student lending industry's allegedly questionable practices.

“It’s time...
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