A recent Business Insider article paints an eerie picture of the stats of the student-loan bankruptcy process. Since the Biden administration has pledged to reform the process entirely, the Education Department is making the lives of borrowers difficult by shutting down requests in court.
Senate Majority Leader Chuck Schumer has asked for a fair balance for everyone who declares bankruptcy. “It’s outrageous that other people get to declare bankruptcy, but students can’t,” Schumer said at a press conference in February.
Aaron Ament, the president of Student Defense, is asking for new policies that put the interests of student borrowers first.
“While we strongly welcome the Department’s commitment to change how it treats student loan borrowers in bankruptcy, in the meantime, it continues to oppose discharges for cancer patients, struggling grandparents and public school employees with serious medical issues,” Ament told the Insider. “We join Senator Schumer in calling for a moratorium on opposing student borrowers in bankruptcy until the Department implements new policies that put the interests of student borrowers first.”
The student loan payment pause is still in place after it was extended to a new deadline of August 31.
If you’d like more information about your student loan payment situation or you’re considering bankruptcy, our attorneys at Sader Law Firm are ready to assist. Call (816) 561-1818 to get your questions answered.