Bring Back Private Student Loan Consumer Protections
Why is this important?
This petition is to get back standard consumer protection - including bankruptcy to Private Student Loans.
Private Students Loans are not federally insured and therefore should be treated like any other private debt (Credit Cards, Mortgage, Car Loans etc...)
Bankruptcy protection was removed from Private Student Loans in 2005 after intense Lobbying by Student Loan giants. Congress amended Title 11 of the Federal Financial Insolvency Codes which took this protection away. Student Lending Giants claimed that adding private student loans to this would help them offer lower interest rates and more favorable terms to student borrowers who did not qualify for federally insured loans. This has in fact had the opposite effect and instead is used as a huge money making tool for student lenders.
