How Are Those New Student Loan Laws Coming?

[NSH]

Okay, I know that within the present laws that in 99.999999% of the cases student loans are not discharged with any BK. I get that. But I have been reading about new laws that some politicians are trying to push through that would make for forgiveness of loans after a time and/or possible BK relief. Since I can't find any new information about this, I was wondering what you kind and knowledgeable folks know?

I am going to assume that for the foreseeable future people with Student Loan debts are simply out of luck, but I might as well ask anyway.

Thanks and sorry for the probably stupid question!

[HHM]

Nothing new, the new law you are referring to is HR 2028, it is just sitting in committee. It was introduced and referred to committee on May 26, 2011. It is essentially a dead bill, so I wouldn't hold out for any legislative action.

[NSH]

Yeah that's pretty much what I thought. Falls under the heading of, "Oh well."

[btbeme]

Since the feds are now the guarantors of about 90% of the student loans now being made, I would say that the chance of any "progress" here is nil. Like, probably forever.

[joshuagraham]

I think that with the enormous weight of student loans on the unemployed youth, there will continue to be relief laws coming. I thought there was already the deal where you pay 10% over your baseline expenses(which is basically 0 for the struggling poor) for 20 years and you get discharged. That's not all that bad, considering!

[HHM]

That isn't exactly new, and it is 25 years, not 20.

[pcn]

That isn't exactly new, and it is 25 years, not 20.

I think they are refering to the executive order that Obama passed back in Oct 2011 that changed the time from 25 years to 20 years, and lowered the income based payback percentage.

[angles]

It’s all just political gaming and will never go anywhere. The politicians are trying to get the younger vote and in doing so tout that they are trying to make this happen. If you think about it, most everyone would be qualified to file so there is a lot to loose from the fed and banks side of this.