Recently, the Education Department announced that it will be reviewing their policy regarding when borrowers can discharge student loans. This is a sign that soon, it may be easier to expunge loans in bankruptcy.
The department is looking for input from the public regarding undue hardship claims made by student loan borrowers. The Education Department wants to figure out whether these claims should be reevaluated in bankruptcy.
Right now, discharging student loans in bankruptcy is practically impossible, but college loan debt in the United States is at all all-time high. According to Experian, collected college loan balance in the US is at $1.4 trillion, and averages to $34,144 per person. This is a 62% increase over the past 10 years.
On September 30, 2017, 4.6 million borrowers had defaulted, which is also a significant increase.
The proposed legislation may be good news for the millions of Americans who are struggling to pay off student loans. Read the full story on NBC.