Trying to Shed Student Debt

Josh Mitchell:

The growth of student debt is stirring debate about whether the government should step in to ease the burden by rewriting the bankruptcy laws--again.

In 2005, Congress prohibited student debt from being discharged through bankruptcy, except in rare cases, because of concerns that many young graduates--who often have no major assets such as a house or a car--would be tempted to walk away from loan obligations.

Some lawmakers now want to temper that position, pointing to concerns that a significant number of Americans could be buried under education loans for decades. Their efforts, however, would apply only to private loans--a fraction of the market.

Posted by Jim Zellmer at May 2, 2012 1:49 AM
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