Harkin Opens Door To Bankruptcy Option for Student Loans

Parents Forum
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<p>"A top Senate Democrat is set to unveil legislation Wednesday that would allow a small portion of Americans’ student debt to be discharged through bankruptcy proceedings, a measure that would likely hit the profits of private lenders." ...</p>

<p><a href="http://blogs.wsj.com/economics/2014/06/25/harkin-opens-door-to-bankruptcy-option-for-student-loans/"&gt;http://blogs.wsj.com/economics/2014/06/25/harkin-opens-door-to-bankruptcy-option-for-student-loans/&lt;/a&gt;&lt;/p>

<p>More: <a href="http://consumerist.com/2014/06/25/expected-bill-would-allow-private-student-debt-to-be-discharged-in-bankruptcy/"&gt;http://consumerist.com/2014/06/25/expected-bill-would-allow-private-student-debt-to-be-discharged-in-bankruptcy/&lt;/a&gt;&lt;/p>

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<p>The articles state this idea probably won’t get enough traction to happen. They couldn’t even get traction to lower the interest rates to 3.9%.</p>

<p>However, it also states that the cost of the Pay to Earn program where certain student borrowers payback is capped at 10% is expected to rise to $14 billion dollars by next year. 90 % greater than they expected.</p>

<p>$14 billion dollars of taxpayer money. So far…</p>

<p>Is there no one with some basic analytical math skills in our government that could have seen that coming? </p>

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<p>There are people with those skills. They don’t worry about being elected. After all I’ve read and being on CC so long I think being able to discharge debt will certainly pull in the reins on student loans and the large debt issue. Too bad it won’t happen (yet).</p>

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<p>Offering goodies to voters is a long-time pre-election strategy. (In this case, the millennials, which were staunch supporters of the current Admin in past election cycles, and are now forecast to sit out the mid-terms, anything the local Representatives can go do encourage their-kinds of voters to show up…)</p>