The Associated Press takes a good look at how a 2005 law traps borrowers in private student loans—upending the whole point of the bankruptcy code. Back in 2005, President Bush signed the misleadingly named Bankruptcy Abuse Prevention and Consumer Protection Act, a giant giveaway to the banking industry that included a provision making it nearly impossible to discharge private...
President Obama on Wednesday announced a plan to offer relief to millions of young people struggling to repay federal student loans. The new rules will let borrowers cap monthly payments on federal loans (but not private loans) at 1... Read Post
Today President Obama will sign an overhaul of the student loan industry. For decades, the federal government has supported student lenders by backing loans originated by private banks. Today we take back the bank subsidy and use it... Read Post
Huffington Post Reader Question Dear Steve, I filed bankruptcy in Colorado in in 2010. Student Loans Finance corporation is still harassing me to pay back a private loan. The federal portion of the loan was paid back. They are sayin... Read Post