March 10th, 2015 by WCBC Radio

On Tuesday, the White House announced that it would ask federal agencies to “develop recommendations for regulatory and legislative changes for all student loan borrowers, including possible changes to the treatment of loans in bankruptcy proceedings.”

In January, Congressman John K. Delaney (MD-6) filed legislation to make student loan debt dischargeable in bankruptcy. Under current law, student loan debt is treated differently than other common forms of debt and cannot be discharged. Delaney’s legislation, The Discharge Student Loans in Bankruptcy Act (H.R. 449), applies to both federal and private loans.

Delaney releases the following statement:

“Excessive student loan debt is a real problem for middle class families, stalling the American Dream and holding back our next generation of entrepreneurs and leaders. I applaud the White House for making student loan debt a priority and hope that we see more momentum for student loan reform. Congress needs to act as well, which is why I’ve filed legislation to make student loan debt dischargeable. Bankruptcy isn’t fun and isn’t easy, but it has been an essential part of our financial system for a long time. It simply doesn’t make sense that we would treat auto loan debt or credit card debt completely differently than student loan debt. The White House and Congress should work together to address this national problem.”