HR2028, The Private Student Loan Bankruptcy Fairness Act of 2011, is currently stalled on the committee level by Mr. Smith. This bill is important because it would amend title 11 of the United States Code to modify the dischargeability of debts for certain educational payments and loans--in other words, the bill would allow for student loan debt to once again be discharged through bankruptcy.
As student loan borrowers face nearly $3trillion in debt, are met with record unemployment upon graduation and face the largest amount of student loan debt in history, it is becoming more and more impossible to deal with private lenders such as SLM Corp (Sallie Mae), CitiBank, Great Lakes and others to make realistic plans for repayment. Many of these companies refuse to consolidate loans, have unfixed interest rates often well above 10% and can sell your loans at any time for any reason which would also change the original terms of your loan. In short, predatory lending practices coupled with the worst economic situation since the Great Depression allow for little assistance to those who are drowning in student loan debt right now.
It is imperative that our elected officials do all they can to help mitigate the burden of educational debt now, as the sub-prime student loan bubble could burst at any moment.
Please sign the petition and urge Rep. Smith to schedule a hearing for HR2028 TODAY! We cannot afford to wait another day without the help that we so desperately need.