Last month, a bill was introduced to the U.S. House of Representatives that would allow student loans to be discharged in bankruptcy and also trim the statute of limitations for such loans. Currently, student loans are NOT dischargeable in bankruptcy absent exigent circumstances. The Student Loan Borrowers Bill of Rights was introduced by Rep. Frederica Wilson of Florida. The bill would limit collection time across the country to six years for student loans. After that, the statute of limitations will have passed.
In 2013, the federal government made $41.3 billion from student loan interest rates. While this is good for the federal government, it is crippling too many young Americans – the average of which is carrying nearly $29,000 in student loan debt. The prospects for the bill seem, unfortunately, grim. Congress is not yet ready to afford students escape from the wall-less debtors’ prison that is student loan debt.
Read more here: http://inthecapital.streetwise.co/all-series/bullet-points-inside-the-2014-student-loan-borrowers-bill-of-rights-act/
Until the federal government takes action, debt settlement is one of the few options available for reducing private student loan debt. Consult with an attorney to see if it’s the right option for you.