Proposed Legislation Allows Discharge of Private Student Loans in Bankruptcy

http://www.nextstudent.com/student-l...ankruptcy.aspx

"“If a struggling individual can file for bankruptcy on their home, credit card, or even gambling debts, then why not student loans? This is an anomaly in bankruptcy law that arbitrarily treats student borrowers worse than other types of borrowers,� Cendana added."

"Private student loans reflect “all the features of subprime lending, including the failure to assess reasonable ability to repay,� Loonin said. “Poor underwriting, irresponsible lending, high fees, origination fees up to 10 percent, APRs … all variable-rate — 15, 20, over that percent.�"