Senators Unveil Bill to Allow Discharge of Private Loans in Bankruptcy

A group of Democratic U.S. senators and representatives introduced legislation Thursday that would once again make most private student loans dischargeable in bankruptcy. Borrowers could discharge such loans before Congress changed the bankruptcy laws in 2005, and advocates for students have argued since then that the often high-risk and costly loans should be treated like automobile and other forms of consumer loans, which distressed borrowers can discharge.