Private student loans have long been perhaps one of the most restrictive forms of debt. Unlike federal student loans, or other types of loans, private student loans are not eligible to be dismissed in bankruptcy (except in the most extreme of circumstances).

Two new bills introduced to congress are now attempting to restructure the way in which private student loan debt is handled in bankruptcy. According to a recent article on Forbes.com, “Senators Dick Durbin (D-IL), Sheldon Whitehouse (D-RI) and Al Franken (D-MN) introduced a bill in the Senate that would rework the bankruptcy code, while Representatives Steve Cohen (D-TN) and Danny Davis (D-IL) introduced a similar bill in the House. While there are some differences between the measures, each aims to have the courts treat private student loans like most other types of debt.”

For those struggling with private student loan debt, or federal student loan debt, please visit our Student Loan Debt Help section for more information. If you are having problems making your private student loan payments, you should contact your lender to see what options are available for you.

Tags: bankruptcy / private student loans / student loan debt / student loans

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