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Education Tue Dec 23 2008
Danny K. Davis on Student Loans
Congressman Davis has published with Yvette Clark an essay on the need to "bail out" students, over at Truthout. Read it.
The Treasury-Fed plan seems to equate credit card, auto and student loans. However, these debts are not equal. Private student loan lenders enjoy federal protections from bankruptcy that other consumer creditors do not. Specifically, unlike other types of consumer debt, private student loans are protected from discharge during bankruptcy except under extreme circumstances. Thus, an individual who accumulates thousands of dollars in debt for purchases of cars or luxury goods can obtain relief via bankruptcy; however, a teacher with private student loans cannot.
