Proposed law to allow private, non-government, student loans to be discharged in bankruptcy
Below is the full text of the proposed change to the bankruptcy code, allowing private student loans to be discharged in bankruptcy. This change would not affect any loan that is backed by the federal government. Federal or government loans would remain non-dischargeable in bankruptcy
S.1102 -- Fairness for Struggling Students Act of 2011 (Introduced in Senate - IS)
S 1102 IS
Mr. DURBIN (for himself, Mr. FRANKEN, and Mr. WHITEHOUSE) introduced the following bill; which was read twice and referred to the Committee on the Judiciary
- Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
- This Act may be cited as the `Fairness for Struggling Students Act of 2011'.
SEC. 2. EXCEPTIONS TO DISCHARGE.
- Section 523(a)(8) of title 11, United States Code, is amended by striking `dependents, for' and all that follows through the end of subparagraph (B) and inserting `dependents, for an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit or made under any program funded in whole or in part by a governmental unit or an obligation to repay funds received from a governmental unit as an educational benefit, scholarship, or stipend;'.