Vermont House asks Congress to let student-loan borrowers file for bankruptcy

[Geee]

Watchdog.org:

MONTPELIER, Vt. — With national student loan debt tripling to more than $1 trillion over the past decade and Vermont’s graduates stuck with the highest debt-to-earnings ratio, state lawmakers are urging Congress to let debt-ridden students file for bankruptcy.

 

On Monday, members of the Vermont House gave preliminary approval to J.R.H. 27, a joint resolution that calls for “federal action to alleviate the national student loan debt crisis.” Federal bankruptcy code prohibits student loan borrowers from declaring bankruptcy in most cases.

 

“The General Assembly requests Congress to amend the federal bankruptcy code to eliminate the prohibition on relief from federal or private student loan debt through the federal bankruptcy system,” the resolution states.

 

J.R.H. 27 highlights sobering statistics illustrating the scope of the problem. Nationwide, almost 7 million student-loan borrowers, or 17 percent, are in default as of summer 2015. This is up 400,000 defaults, or 6 percent, compared to 2014. Student loan debt tripled between 2005 and 2015, rising to $1.19 trillion, according to the Federal Reserve Bank of New York’s Consumer Credit Panel.

[clearvision]

So you can get school paid for then declare bankruptcy while you have nothing. Start with a clean slate at your first real job. What could go wrong?

[SrWoodchuck]

So you can get school paid for then declare bankruptcy while you have nothing. Start with a clean slate at your first real job. What could go wrong?

 

@clearvision! Then, get your EBT card & indigent housing allowance lined up, for the wait until your degree in Womyn's Lesbian Cultural Anomalies finds a niche in the job market! Maybe you could supplement your "free" lifestyle with some under-the-table cash from your minor in Muslim Beekeeping...and be free to write poetry, too?

[Geee]

@clearvision - guess this is Bernies free tuition.