
Everyone:
We have it on good word that the Department of Justice is dragging their feet on ending the practice of opposing federal student loan borrowers in bankruptcy proceedings. Now is a very critical time, and we need to push Attorney General Garland and Associate AG Gupta to act.
Please go to this link, select "bankruptcy" for the topic, and say something like the following:
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Dear AG Garland/AAG Gupta-
I am writing to urge you to work with the Department of Education to stop opposing federal student loan borrowers in bankruptcy court. The Education Secretary, Undersecretary, and Chief Operating Officer of the lending program have all committed to doing this in the recent past, and it is critical that the Justice Department do their part to ensure that this happens.
The Founders called for uniform bankruptcy laws in Article I, Section 8. That student loans are treated so radically differently from all other types of loans in bankruptcy is a dangerous departure from their wisdom. The real harms this unique exception to discharge for student loans has caused the American People has been massive, due not only to deserving citizens being denied relief, but also due to systemic abuse of all borrowers with the threat of bankruptcy being taken off the table for them. The harms this is poised to inflict upon the public is incalculable.
There was never a valid reason for singling out federal student loans, and making bankruptcy discharge for all intents and purposes impossible for the debt. Discharge rates when student loans were treated the same as all other loans was far less than 1%.
This precedent, if allowed to stand, could be applied arbitrarily to other types of loans, and there are those who would make all consumer debt similarly non-dischargeable. This is precisely what the Founders (who they, themselves were being abused by onerous debt to British banks, trading companies, etc) wished to avoid when they called for bankruptcy laws ahead of the power to raise an army and declare war in the Constitution.
Please act with expediency to facilitate this proposed administrative action by the Department of Education.
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ALSO: PLEASE RETWEET THIS.
See last night's live stream to understand why this is so important.
Also: See our interview yesterday on Fox Los Angeles. Please make a similar story happen with a news station in your local area (give them our contact info, and tell them we have borrowers in your area with compelling stories who are willing to be interviewed about the student loan problem, and our fight).
This truly is the battle...Your battle. Please help us fight and win it!
Regards,
Alan
ps. Please donate.