Fighting for Bankruptcy Relief on Student Loan Debt

One of the professional associations I belong to is the National Association of Consumer Bankruptcy Attorneys (NACBA).  In addition to providing services to its members, it also lobbies on important bankruptcy issues.  Right now, one of them is the student loan crisis in this country and the need for bankruptcy relief.

In its annual Capitol Hill Day last week it launched a campaign to restore bankruptcy protection for student loans.  In conjunction with meetings on the Hill, NACBA released a report titled, “The Student Loan ‘Debt Bomb’: America’s Next Mortgage-Style Economic Crisis? ” pointing to the increasing pool of student debt—and debtors—with few options for a fresh start.  As a part of this, since last Wednesday, more than 200 articles about student loan debt have appeared in national, regional and local papers.  In fact, several NACBA members appeared in local news segments or were quoted in articles.

Many prominent national media outlets want to feature this issue in an upcoming article or on a television segment, but they need real people with compelling cases that illustrate the problem they are trying to address by seeking to restore bankruptcy protection for student loan debtors. Their plan is to keep NACBA in the news, their issues on the table, and struggling debtors on the minds of everyday Americans.

In particular, they need on an urgent basis, two different types of stories, and they are asking for help. They are:

• How student loans have been a precipitating factor for someone whose student loans are for technical school or undergraduate education and who is entering bankruptcy in an attempt to rid themselves of other debtsThe story would be more compelling if medical calamities or a loss of a job during the financial crisis served as a catalyst for accruing debt.
• Parents who co-signed on their child’s loans or got PLUS loans for their child’s education and now find themselves seeking bankruptcy relief from other forms of debt to help them focus on paying down their child’s student loans.

We need to change the law regarding the non-dischargeability of student loan debt, as we are heading for a financial crisis akin to that of the subprime mortgage scandal.  NACBA is fighting hard for this.  If you have a story of the type listed above, leave a comment below and I will forward it on to them.  Please help to change the law!  You can make a difference!

Related Posts

• What Should Be Done About the Student Loan Crisis
• Something's Gotta Give: Student Loans Should Be Dischargeable in Bankruptcy