Will Changes in Student Loan Law Help Me?
Most student loan debt is not dischargeable in bankruptcy, and recent reform to student loan law does nothing to change that.
The House of Representatives recently passed a bill, taking steps to eliminate the influence of private banks:
H.R. 3221, the Student Aid and Fiscal Responsibility Act, passed along a party line vote of 253 to 171 in the U.S. House Thursday Night. The bill proposes big changes to student loans by taking private banks out of the equation.
Only the government would administer student loans, meaning the Feds would no longer have to pay subsidies to banks for offering student loans in the first place.
This is good news, but not for those contemplating bankruptcy. The best way to avoid getting harangued for your student loan debt is not to accumulate any, if you can help it. I borrowed 130K to attend law school and the salary required to pay it all back before I’m dead is astronomical. So think before you borrow. Look for grants and scholarships before looking to lenders. Because if you are faced with bankruptcy, you’ll be stuck with the student loan bill.
The Law Office of J. Joseph Bardine, P.A., is a law firm in downtown St. Petersburg, Florida, which represents clients primarily in foreclosure defense and bankruptcy. For more information, please visit us at bardinelaw.com for more information and to contact us for a free consultation.
