Discharge Student Loans in Bankruptcy Act of 2015
Bill Summary
This bill would make student loans dischargeable under bankruptcy meaning that debt could be wiped away in bankruptcy proceedings by borrowers who can show they are truly unable to otherwise pay off their loans.
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Opponents say
Federal student loans should not be discharged in bankruptcy. These loans are insured by the taxpayers, who deserve their money back. Allowing student loans to be dischargeable is inviting abuse of the system by borrowers who simply do not want to pay back the loans they took out.
Proponents say
The bill's author, Rep. John Delaney (D-MD-6th), stated “Student loan debt is dragging down economic growth, keeping the American Dream out of reach for many and is a monthly strain for millions. . . . Right now, there is effectively a huge student loan loophole in bankruptcy law that’s hurting real people." Proponents argue that allowing student loans to be discharged in bankruptcy will protect borrowers who can show that they are unable to make payments on their loans.
