August 9, 2011
Will Democrat bankruptcy bill end opportunity in the Land of Opportunity?
In June 2011, a bill was introduced by Democratic members of both the United States Senate and the House of Representatives that will again allow students to declare bankruptcy on private student loans under similar rules as other forms of personal debt. This was allowed between 1978 and 2005 when the law was changed. Congressmen and Senators who support this legislation believe that present-day law has the effect of dissuading young people from pursuing higher education due to a threat of permanent financial ruin that stems from hundreds of thousands of dollars in education debt that cannot ever be erased.Opponents, meanwhile, argue that borrowers should be responsible for their own debt, in particular young people with higher education degrees whose long-term job prospects are favorable. They argue that it would be unfair for the government to protect itself against bankruptcy, while exposing private enterprise engaged in identical banking practices.Due to the skyrocketing of...(Read Full Post)