A new law may fix student loan debt when filing for bankruptcy - Business Insider

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It's almost impossible to get rid of student loan debt when filing for bankruptcy, but help may be on the way (via GoLendEDU)

Nearly one-third of bankruptcy filers also carry student loan debt, which is virtually impossible to dischargefor analysis, 32% of them involved student loan debt. In other words, 32% of consumers that attempted to discharge their debts in bankruptcy also carried student loan debt, which will almost surely linger on even after all other debts have been successfully cleared.

And it turns out that struggle will be quite arduous, as it was found that student loan debt comprises a significant portion of this cohort's total debt.For the 32% of bankruptcy filers that carried student loan debt, student loans made up 49% of their total debt on average.

In these instances, student debt-ridden consumers are not getting financial restarts through bankruptcy, but a continuance of their issues with no end in sight as long as those student loan payments keep commanding an untenable portion of their income. Help could be on the way from Washington, DC

 

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