If you are one of the 45 million or so people with a student loan, there could be good news on the way. Lawmakers are talking about two pieces of legislation that could help people escape the weight of student loan debt.
Student loan forgiveness could be on the way
One of the things President-elect Biden has talked about doing is forgiving a portion of people’s student loans. This forgiveness could amount to around $10,000 per person. While this has always met with resistance from Congress before, with Democrats in the majority in both houses of Congress, the chances of partial loan forgiveness have increased. However, this will not be enough for many people struggling to meet their student loan payments.
Proposed changes could make it easier to include student loans in bankruptcy
Student loan debt is usually excluded from a personal bankruptcy filing. While some people have managed to have theirs cleared, it is much more challenging than wiping credit card debt and other unsecured debt.
A group of senators recently proposed changes to the bankruptcy codes. If this were to pass, it would treat student loans equally with the unsecured debts you can currently write off via Chapter 7 and Chapter 13 bankruptcies. It would ease things for millions of Americans who are struggling to pay their bills.
If you’re struggling with debts, student loans may be just one of the financial obligations you may have that prevent you from progressing with life. Ignoring your debt will only lead to greater problems and allow the pressure on you to continue. The sooner you seek legal advice, the better. It is the first step toward taking control of the situation and regaining control of your life.