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Student Loan Bankruptcy Bills Pending

August 2, 2011 by  

A coalition of Democrats have proposed bills in both the House and Senate which would offer bankruptcy protection to students who have taken out private student loans. Back in the 70′s when the Bankruptcy Code was being revised, private student lenders managed to carve out an exception for themselves and students were denied the protection of listing their private student loans in a bankruptcy petition, a carve out that has never been given to any other private lender.  The thinking at the... 

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