May 21, 2013 > State approves resolution on student loan debt
State approves resolution on student loan debt
Submitted By Jeff Barbosa
Assemblyman Bob Wieckowski's (D-Fremont) Assembly resolution to urge Congress to give students the chance to discharge their private student loan debt through bankruptcy, as they can with almost all other kinds of debt, passed the Assembly Banking and Finance Committee on May 6, 2013 on a 7-3 vote. The Financial Fresh Start resolution, AJR 11, now heads to the Assembly floor.
"The inability to discharge private student loan debt through bankruptcy in the same way that most other private debt is discharged causes debtors to postpone life-cycle events such as buying a home, getting married or starting a family," Wieckowski said. "It denies the consumer a fresh start."
In 2005, Congress tucked the private student loan bankruptcy prohibition into a massive bankruptcy reform bill with little debate.
Wieckowski has introduced a Student Bill of Rights legislative package to provide students with better counseling and relief from excessive debt.
The California State Student Association and California Council on Economic Education support AJR 11, along with other organizations.