Apr 21, 2010
OR Student Association Celebrates 35th Anniversary
Apr 20, 2010
Students Back Measures to Restore Fairness in Private Student Loan Bankruptcy Laws
Last week, Senators Dick Durbin (D-IL), Sheldon Whitehouse (D-RI), and Al Franken (D-MN) joined Representatives Steve Cohen (D-TN) and Danny Davis (D-IL) in introducing legislation that would permit private student loan debt to be dischargeable in bankruptcy court. The bills, S. 3219: The Fairness for Struggling Students Act in the Senate and H.R. 5043: The Private Student Loan Bankruptcy Fairness Act in the House, would restore fairness to laws governing student loan bankruptcy.
“This legislation ends the special treatment private student lenders have enjoyed for years at the financial and personal expense of debt-ridden college graduates,” said USSA President Gregory Cendana. “If a struggling individual can file for bankruptcy on their home, credit card, or even gambling debts, then why not student loans? This is an anomaly in bankruptcy law that arbitrarily treats student borrowers worse than other types of borrowers.”
Reforming student loan repayment laws is critical. Even with recent improvements to the federal Income-Based Repayment program, there is still an estimated 730 billion dollars in outstanding federal and private student loan debt in the United States, with only 40 percent being actively repaid. The rest is in default or deferment, resulting in plummeting credit and huge sums of interest for borrowers.
Private student loans have not been dischargeable in bankruptcy court since 2005, leading to a recent hike in student loan debt, which today averages nearly 25 thousand dollars. USSA will be advocating for this and other measures to make college more accessible and affordable for all.
Student Leaders Endorse Measures to Invest in Strong Job Growth
Last week, the USSA Board of Directors, made up entirely of college student leaders, voted to endorse a series of principles it wishes to see in upcoming legislation designed to spur job growth. There are a number of job bills in Congress. USSA will be advocating for the above principles to be included in whichever jobs bill is ultimately advanced. The principles are:
- Funding exclusively for new youth employment.
- Job training for community based organizations.
- Long-term comprehensive youth employment solutions.
- Prevention of massive education job loss resulting from state budget cuts.
The nation's unemployment crisis has had a crippling impact on young people and people of color, requiring USSA, as a national force for youth and traditionally underrepresented communities, to take a stand on strong jobs legislation. For instance, adults with a high school diploma have more than twice the unemployment rate (10.8 percent) of adults with a bachelor's degree (4.7 percent). This demonstrates the important connection between receiving a college degree and gaining employment.
USSA will be advocating for strong jobs legislation on behalf of the nation’s college students, particularly those in traditionally underrepresented communities who are disproportionately affected by unemployment. The ability to secure gainful employment is one of the main reasons why USSA fights for education as a right, not a privilege.