Private Student Loan Bankruptcy Fairness Act of 2011

by Nicholas Ortiz,

Last year U.S. Representative Steve Cohen of the Ninth District of
Tennessee introduced a bill called the Private Student Loan Bankruptcy
Fairness Act of 2011. The bill would make private student loans
generally dischargeable in bankruptcy as a way of addressing the
mounting student debt crisis that many have written about. The bill
was referred to a subcommittee in July 2011, and there it still sits
awaiting further action. So, I called the Congressman Cohen's office
today, and he responded by email with the following comment:

"Although I held hearings and marked up the Private Student Loan
Bankruptcy Fairness Act when I was Chairman of the Commercial and
Administrative Law Subcommittee last Congress, the Republican
leadership of the Judiciary Committee has not shown any interest in
moving the bill forward in this Congress. Thanks to the recent report
by NACBA, President Obama's efforts to address the student loan debt
crisis, and other press reports about the crushing student loan debt
burden, we are continuing to bring attention to the bill and gaining
additional cosponsors. I am hopeful that we will ultimately be able to
pass the bill, particularly if control of the House changes hands
again."

This is where the bill stands as of February, 2012. Movement is
unlikely until after 2013 when the new Congress begins after the
November 2012 elections. The bill only has a chance of emerging from
committee if the democrats retake the House. I'll try to stay on top
of the bill and update the information here or on my student loan
blog.

For more information on these matters, please call our office at 305
548 5020, option 1.

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