Going to college represents a step on the ladder to a lucrative corporate career or becoming a business owner for many Alabama residents. They felt that taking out student loans to complete their education was the right move because they expected to find a well-paying job after graduating.
Unfortunately, life does not always work out the way we plan. Those burdened by overwhelming student loan debt have few options other than paying off their loans, often over a lifetime. A recent bipartisan bill proposed by a pair of U.S. senators – one a democrat, the other a republican – could provide significant relief.
The FRESH START Through Bankruptcy Act
The “Fostering Responsible Education Starts with Helping Students Through Accountability, Relief, and Taxpayer Protection Through Bankruptcy Act of 2021” or FRESH START through Bankruptcy Act may make it possible for some to have their student loans discharged.
Under this act, those strapped with student loan debt at least ten years old may discharge this debt through bankruptcy. To even things out, certain educational institutions will have to repay a percentage of the discharged debt.
If approved, the act will provide welcome relief for those stagnating in a pool of unpaid student loan debt. It is also expected to force more educational accountability in colleges that encourage students to seek out loans.
A promise of hope for the future
As you might expect, it will not be easy to use bankruptcy to get out from under student loan debt. You must still follow the legal requirements associated with bankruptcy and fall within the income limits. However, the new bill promises hope for those in dire financial circumstances wishing to overcome their student loan debt once and for all.
If you cannot wait for the bill to find approval, it may be time to learn more about bankruptcy in Alabama. Discharging other debts through bankruptcy may allow you to begin paying off your loans over time.