One researcher discovered that of over 230,000 student-loan borrowers whom filed bankruptcy in 2007, under 450 — less than 0.2 % — also attempted to discharge their training loans.
Presidential candidate Beto O’Rourke simply proposed a debt-forgiveness that is large-scale to greatly help deal with the problem. Fellow prospects Sens. Elizabeth Warren (D-Mass.) and Bernie Sanders (I-Vt.) already offer such programs. But such relief should come, if at all, following the presidential election. For the time being, bankruptcy should always be a far more option that is readily available undoubtedly overrun borrowers.
The bills would expel a requirement that is applicable to student education loans and never to virtually any other types of financial obligation: to have a release, the student-loan debtor must undertake the intimidating task of suing the creditor within the bankruptcy and proving that repayment would result in the debtor “undue hardship.”
The undue-hardship requirement undercuts the basic purposes of the student loan programs: equal access to higher education, benefiting society through educating the population, and helping students by severely restricting bankruptcy relief.Read More