Joel R. Glucksman
Partner
201-896-7095 jglucksman@sh-law.comFirm Insights
Breaking News On Student Loan Debt in the U.S.
Author: Joel R. Glucksman
Date: March 17, 2015
Key Contacts
Back
Following up on our recent posting about the problems concerning student loan debt in America, Fortune magazine reports that over a dozen Democratic senators have submitted proposed legislation to deal with at least a part of the skyrocketing amount of student loan debt.
Under their proposal, any education loans issued to students by private financial institutions would be treated like any other unsecured debt in a bankruptcy proceeding. This would be in contrast to the current situation, where student loan debt – public or private – is nearly impossible to erase in a bankruptcy proceeding.
Of course, in an individual Chapter 11 bankruptcy, debtors are required to submit a plan that provides for all of their disposable income, over a five year period, to be available to pay their unsecured pre-bankruptcy debts. Nevertheless, under the new proposal in the Senate, the end result after five years of such payments would be that the remaining student loan debt would be discharged.
At the present time, total student loan debt exceeds $1.2 trillion dollars. Of this amount, $165 billion stems from private lending sources, according to Fortune. The proposal in the Senate would therefore help only roughly ten (10%) percent of the outstanding amount, but would provide a starting point.
According to Fortune, the lending industry’s primary trade group, the Consumer’s Bankers Association, responded to the President’s proposal by suggesting that lawmakers instead address the rising cost of college.
Are you a student or a working professional who is dealing with debt procured during college? Let me just tell you that you are definitely not alone, there are millions of Americans older and younger than you dealing with the same issue.What’s your experience like dealing with student loan debt? Feel free to share your thoughts and feelings in the leave your comments in the section below.
- Practices: Corporate Transactions & Business, Bankruptcy & Creditors' Rights
- Locations: Red Bank, NJ, New York City, Little Falls, NJ
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Related Posts
See all
Crisis-Proofing Your New Jersey Business: Building a Crisis Response Plan Before You Need One
For New Jersey businesses, crisis preparedness should be viewed as a legal and operational function, not simply an emergency-management exercise. A well-designed crisis response plan can help preserve evidence, protect confidential communications, meet reporting obligations, limit unnecessary exposure, and prevent an already difficult situation from becoming a larger legal problem. Key Takeaways A serious crisis […]
Author: Sean M. Pena
Monmouth County's Next Development Wave: What Developers and Investors Need to Know
Monmouth County is entering a significant new phase of development. For those looking to acquire property or undertake a new project, understanding the market opportunity is only the beginning. The more important question is whether a particular property can actually be developed as contemplated and what approvals, agreements, and other conditions will be required to […]
Author: Donald M. Pepe
Are Your Conversations with AI Shielded from Discovery? Courts Are Split
Whether a client’s prompts to a generative AI tool and the documents it produces are protected from disclosure depends on the case type, who claims protection, and whether counsel was involved. In United States v. Heppner, a New York federal judge ruled that a criminal defendant’s communications with an AI platform were protected by neither […]
Author: Chris Seelinger
Guardianships in New Jersey: When a Loved One Can No Longer Manage Personal or Financial Affairs
When a family member can no longer make important decisions for themself, the question is often not whether the family will step in, but whether they have the legal authority to do so. A spouse may manage household finances, or an adult child may arrange medical care and pay bills. Still, informal assistance does not […]
Author: Marc J. Comer
New Jersey’s Revised UHAC Regulations: What Residential Developers Need to Know About Affordable Housing Commitments
New Jersey residential developers with affordable housing obligations should carefully review their existing approvals, development agreements, and proposed deed restrictions in light of the State’s revised UHAC regulations (Uniform Housing Affordability Controls). The regulations, which took effect on November 6, 2025, significantly change the administration and physical requirements for affordable housing units. For developers with […]
Author: Wendy Rubinstein Quiroga
“No Comment” Culture: Why Silence Is Often the Riskiest Legal Strategy
A “no comment” response is sometimes the right call when a legal problem arises. As a blanket policy, however, it lets allegations go unanswered, deadlines pass, evidence disappear, and manageable disputes grow into expensive litigation. The businesses that fare best are usually the ones that say little publicly while acting decisively behind the scenes. When […]
Author: Sean M. Pena
No Aspect of the advertisement has been approved by the Supreme Court. Results may vary depending on your particular facts and legal circumstances.
Sign up to get the latest from our attorneys!
Explore What Matters Most to You.
Consider subscribing to our Firm Insights mailing list by clicking the button below so you can keep up to date with the firm`s latest articles covering various legal topics.
Stay informed and inspired with the latest updates, insights, and events from Scarinci Hollenbeck. Our resource library provides valuable content across a range of categories to keep you connected and ahead of the curve.