A Simple Solution for Overburdened Student Loan Borrowers
JOHN MCMICKLE; MAR 27, 2015
Congress has been making it harder for borrowers to get out of their student loan obligations since the late 1990s. But in the face of concerns about student loan debt’s impact on individuals and the broader economy, lawmakers are facing growing pressure to ease the burden of repayment.
Policymakers have good reason to be worried about student debt. The total debt outstanding for students in the United States exceeds $1 trillion, and this debt loan may be inhibiting growth in the housing market.
Some leading proposals in Congress would allow borrowers to erase private student debt while preventing the discharge of government student loans. But the recent history of bankruptcy law suggests there’s a better way to provide relief to student borrowers while minimizing concerns about moral hazard. Read more…..
John McMickle is the founder of JDM Public Strategies, a consulting firm that works in financial services and government relations. He served as the bankruptcy counsel to the U.S. Senate Judiciary Committee from 1994 to 2001. Follow him on Twitter @jdmpsllc.