Give Bankruptcy Protection to Students with Student Loans

Student Loan Bankruptcy Protection for students.

In the United States, there are two types of student loans: federal loans sponsored by the federal government and private student loans. The overwhelming majority of student loans are federal loans. Federal loans can be "subsidized" or "unsubsidized". Interest does not accrue on subsidized loans while the students are in school.

In 2005, the bankruptcy laws were changed so that private educational loans also could not be readily discharged. Supporters of this change claimed that it would reduce student loan interest rates.

The New York Times published an editorial in August 2011 endorsing the return of bankruptcy protections for private student loans in response to the economic downturn and universally increasing tuition at all colleges and graduate institutions.

http://www.nytimes.com/2011/08/27/opinion/relief-for-student-debtors.html?_r=2&scp=1&sq=student%20loans&st=Search