More than 40 million Americans have student loans averaging $28,000 of debt which collectively total over $1.3 trillion. Because of the heavy student loan burden, the White House is considering allowing Americans to obtain student loan forgiveness through bankruptcy, something the National Association of Consumer Bankruptcy Attorneys and federal lawmakers having been considering for a number of years.
On March 10, 2015, a White House Memorandum to the Secretary of the Treasury, the Secretary of Education, the Consumer Financial Protection Bureau, and others announces a “Student Aid Bill of Rights to Help Ensure Affordable Loan Repayment”.
The memo states that the White House will use executive action to implement the proposed Student Aid Bill of Rights. It gives the Secretary of Education until July 15, 2015 to “issue information highlighting factors the courts have used in their determination of undue hardship, to assist parties who must determine whether to contest an undue hardship discharge in bankruptcy of a federal student loan.”
The memorandum also gives the Secretary of the Treasury, the Secretary of Education, and …