Support H.R. 5043: Protect Private Student Loan Borrowers:
“Private student loan borrowers need more protection. Due to a 2005 decision by Congress to make it more difficult for private student loan borrowers to seek bankruptcy protection, many Americans are drowning in debt with no way out. Currently, if you rack up thousands of dollars in debt buying sports cars or trips to Tahiti, you can file for bankruptcy. But if you can’t make your payments on the private loans you took out to pay for college, you’re doomed to slide further into financial ruin. Private student loan borrowers must currently prove “undue hardship” in order to file for bankruptcy – an almost impossible feat.
There is a solution. H.R. 5043, the Private Student Loan Bankruptcy Fairness Act of 2010, would treat privately issued student loans in bankruptcy the same as other types of private debt. U.S. Representatives Steve Cohen (D-TN) and Danny K. Davis (D-IL) has proposed the legislation, which in September 2010 moved from a committee to the entire House.
It is imperative that you support this bill, and also ensure that protection extends to all private student loan borrowers, whether they borrow from for-profit or non-profit companies. No unique repayment period should be imposed (i.e., the borrower should not have to pay for 5 years in order to file) or other elements that would make it even harder to receive relief.
I am writing today to tell Congress to extend the same protection to private student loan borrowers that they do to those in debt from buying cars, houses and luxury goods. Please vote yes on H.R. 5043.”
Click on the photo above to go to the electronic petition. Thank you. — LMB
** Update: Please find the Bill information and updates here. **