Americans now owe more money in student debt than credit card debt,
with recent college graduates on the hook for more than $1 trillion in
Many of these loans - about $150 billion worth - are private loans,
which have outrageously-high interest rates and are usually extended
under harsh terms without basic consumer protections, resulting in a
crushing financial burden on college students and graduates. Worse
yet, unlike credit cards and other similar types of debt, a law pushed
through Congress by former President George W. Bush prevents students
from discharging private student loan debt through bankruptcy
proceedings, which gives special protections to the private loan
industry at the expense of students and recent graduates.
Fortunately, two members of Congress - Rep. Steve Cohen (D-TN) and
Rep. Danny Davis (D-IL) - - have introduced legislation entitled the
Private Student Loan Bankruptcy Fairness Act of 2013 that would treat
privately issued student loans the same as other types of private debt
in bankruptcy, providing much needed relief and consumer protections
to working-class college students and recent graduates.
I just signed a petition urging my representative to co-sponsor this
common sense legislation and give college students and recent
graduates who are struggling in the weak economy the consumer
protections they deserve. I hope you will do the same. http://act.credoaction.com/campaign/student_private_loans/?r_by=55275-3052123...