Eastern Wisconsin’s Representative in Congress has introduced a bill that aims to help those with student loan debt.
Congressman Glen Grothman says that the bill has bipartisan support and will “restore the right to discharge student loan debt in bankruptcy”.
Student loans were not allowed to be discharged as of 1970, with the logic being that if an individual declared bankruptcy and their mortgage was discharged, the bank could then collect the deed and re-sell the house.
There is no way for a lender to recoup the original investment of a college degree.
However, Grothman says that line of thinking has opened up lenders to irresponsibly lend to students, some of which struggle to find good-paying jobs after graduation.
Grothman said of the situation, “Out-of-control student loan costs and wasteful spending, coupled with high tuition prices, must come to an end for the sake of our students. If this bill becomes law, it will force all federal student lenders, including the federal government, to become more responsible.”
