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.