Allow student loans to be discharged. Allow student loans to be forgiven.
Why is this important?
Individuals must be allowed to declare bankruptcy on students loans. Presently, it is nearly impossible to meet the standards for discharge.
Courts use different tests to evaluate whether a borrower has shown undue hardship and the “evaluation” based on the Brunner test is too restrictive and unfair to the vast number of students who need this option now, so they may maintain a standard of living presently and in the future.
Presently, many students have over $200K in debt with incomes as low as $50K or less. They are merely meeting their living expenses and often unable to save for retirement. These aging individuals are strapped with student loans with no chance of repaying them. The only ones benefiting from this debt are benefiting are the lenders, who continue to add interest upon interest to these ever increasing debts. The lenders know that the federal government will be the one's to pay these student loans off, but at a much higher price.
Reduce the years for student loan forgiveness and make all present forgiveness laws proactive. Presently, students can have loans forgiven after 120 payments, but this new law does not help those with loans from the 80s and 90s. The laws need to be proactive and allow older loans to be forgiven due to low wages, etc.
