Student Loans and Bankruptcy

Student loan debt has become a serious problem in the United States. According to the Federal Reserve Bank of New York, approximately $85 billion in educational debt is past due. With so many in default on their loans, borrowers are looking for ways to repay or discharge their debt, and many are looking to bankruptcy as a solution.

The general rule is that student loans cannot be discharged in bankruptcy. However, there are exceptions to this rule. The Bankruptcy Code states that educational loans that are federally backed or where the funds originated from a non-profit agency are not discharged in bankruptcy. Private loans can be discharged but these types of loans are a small percentage of the educational loans given each year.

Debtors can discharge educational loans in Chapter 7 bankruptcy cases by claiming undue hardship in a separate lawsuit filed in the bankruptcy court. These lawsuits are called adversary proceedings. The definition of undue hardship is slightly different depending upon where the bankruptcy case is filed. Many courts follow the Brunner Test.

The Brunner Test is a three-part test for determining dischargability of this type of debt. First, the debtor must prove that repayment of his school loans would be an undue hardship on himself and his dependents. This means showing that the debtor cannot maintain a minimal standard of living while repaying any portion of the educational loans. Second, the debtor must prove that the circumstances that created the undue hardship are permanent and unlikely to change. Third, the debtor must show that he has made a good faith effort to repay the loans. Courts also consider whether the circumstances that created the undue hardship were present at the time the money was borrowed. Very few debtors meet the criteria necessary for discharging student loan debt in bankruptcy.

If student loans cannot be discharged then they have to be paid. Treatment of these claims is different depending upon whether the case is filed under Chapter 7 or Chapter 13. In Chapter 7 cases repayment of student loans is deferred during the bankruptcy case. Once the case is closed the lenders are free to begin collecting from the debtor. In Chapter 13 cases student loan creditors are treated as unsecured creditors. They receive payment only if the debtor's confirmed plan provides payment to the unsecured creditors as a class. However, if the student loans are not paid in the bankruptcy case then payment is simply deferred until the case is closed. During the case the debt continues to accrue interest, so the balance can be substantially larger when repayment begins after the bankruptcy case.

Four Student Loan Types and How to Get Them

Those entering their final year of high school have a lot to think about. Where do I go from here? What college can I attend to achieve my goals? And while discovering the answers to these questions is hard enough on its own, so is finding the financial means to make those answers into a reality. College these days is not cheap - even if you go to state-sponsored colleges - and often the only choice you have left is taking out a student loan. Luckily the government and banks have created several options.

Types of Student Loans

Generally speaking, there are two types of loans that you can take: federal loans and bank-sponsored private loans. Each has its advantages and disadvantages, but both types of loans can help pay for everything from books to living expenses to basic tuition and fees.

Any of these student loans that you choose to take carries the same repayment agreement. That is, you do not need to pay back a student loan, public or private, until 6 months after graduation. Also, the interest rates are very low and in some case fixed, allowing for a better prediction of your financial obligations after school. Taking a student loan to pay for college is clearly the way to go and there are four major options that you can consider.

Federal Stafford Loan

The most popular loan taken by college students is the Federal Stafford Loan which comes in both subsidized and unsubsidized forms. The subsidized Stafford Loan does not begin to accrue interest until after graduation whereas the unsubsidized version does accrue interest while you are still in school. The interest rates on Stafford Loans are low and fixed and they are available directly through the Department of Education. Whichever school you ultimately choose will help you get this loan through their Financial Aid office. Stafford Loans can be given up to the amount of $20,000 each school year. They are available to anyone who wants one, though subsidized loans are given based on financial need.

Federal Perkins Loans

The next option is a need-based loan also sponsored by the Federal government, the Perkins Loan. This loan is only available to those who meet certain criteria in terms of income (and parental income) and a standard formula will be employed by your college's financial aid office to determine what amount you qualify for. Because of the nature of Perkins Loans, which are given on a first come, first served basis, and the special needs-based formula, it is important to apply for these loans early.

Federal Plus Loans

The Federal Plus Loan operates much like the Perkins Loan, in that it is need-based. However, rather than being taken out by the student, Plus Loans are given to parents wishing to pay for their child's college education themselves. Plus Loans are determined based upon the parents' financial situation and income in addition to how many children they have attending college.

Private Student Loans

The final option is student loans provided by private banks. These lenders - who also serve other loan needs such as home and car loans - review your FAFSA form and then provide the amount of money that a student or parent needs. These loans are generally used when Federal options are insufficient to pay all college expenses, such as at private colleges, and will be determined based on the same criteria that the financial institution uses to make any personal loan. These loans generally do not carry a fixed interest rate, however, so it is important to exhaust the federal options first.

Taking a Loan

Going to college is a really big step in a young person's life, but so is taking a student loan. Make sure that you understand all repayment obligations before you take money for school as failure to repay student loans can negatively impact your credit in the future.

International Students and the FAFSA

The Free Application for Federal Student Aid (FAFSA) is used by US citizens and permanent residents to apply for financial aid from the US federal and state governments. Colleges and universities also use the information submitted on the FAFSA for computing need-based awards. International students are not eligible for the US government aid programs (Pell Grant, SEOG Grant, Stafford Loan, Perkins Loan, PLUS Loan, and Federal Work-Study). However, many schools will ask international students to submit a FAFSA so that they may use the data for assessing financial need.

Before filing a FAFSA, international students should ask the schools to which they are applying what procedure they should use to apply for institutional aid.

Some schools require students to file a FAFSA as part of their application for institutional aid. However, if a international student submits a FAFSA without supplying a Social Security Number (SSN) or Alien Registration Number (ARN), the FAFSA will be rejected and the data will not be processed. Even if the international student supplies a SSN, the FAFSA will be rejected when they check option 3 ("No, neither of the above.") in the answer to question 15-16 ("Are you a U.S. citizen?").

At first glance, it seems that there is no way to work around this problem. The FAFSA is not intended to be used by schools for processing institutional aid applications submitted by international students. Only US citizens and eligible noncitizens may receive federal student financial aid. US citizens have SSNs, eligible noncitizens have ARNs, and international students have neither. According to the 1992 reauthorization of the Higher Education Act of 1965, every applicant must have a social security number in order to apply for federal student financial aid. Since the primary purpose of the FAFSA is to apply for federal student financial aid, a FAFSA submitted without a social security number will be rejected.

Nevertheless, it turns out that since a social security number is not considered proof of US citizenship, some international students may be able to apply for and receive a social security number. (This may depend on the type of visa; it isn't clear.) If a international student receives a social security number, the card is stamped so that there is no mistaking it for citizenship. They can then use this number to complete their FAFSA. (They can also use the social security number to open a bank account or get a driver's license.)

When a international student with a social security number submits a FAFSA, they should supply their social security number in the answer to question 8, and check option 3 ("No, neither of the above.") in the answer to question 15-16 ("Are you a U.S. citizen?") to indicate that they are not eligible for federal student financial aid.

Even though the FAFSA will still be rejected, according to a contact at the US Department of Education, the data is still there and can be drawn down by the financial aid office and used to make institutional awards.

Before applying for a social security number and filing a FAFSA, however, international students should ask the school whether they should submit a FAFSA, and if so, where it should be submitted. Many schools that use the FAFSA for processing foreign student aid applications require the students to submit the FAFSA directly to the school, and not to the federal processor. This bypasses the entire need for a Social Security Number.

International students should be careful to not supply another nine-digit number in the Social Security Number field. The FAFSA will get processed if they do this, but it will be flagged for verification because the Social Security Number will not produce a positive match.

• Many schools issue student ID cards using a nine-digit identification number that is the same as the student's Social Security Number. Since the Social Security Administration has not issued Social Security Numbers beginning with the number 8 or 9, many schools use identification numbers beginning with those digits for international students. For example, it is common for schools to issue international students a number that begins 888 or 700. These student ID numbers are NOT social security numbers, and should NOT be used on the FAFSA.
• Canadian students have a SIN number that looks very similar to the SSN. The SIN is not a social security number, and should NOT be used on the FAFSA.

How to Fill Out the FAFSA to Get Federal Student Loans

FAFSA (the Free Application for Federal Student Aid) is a required entry way to billions in federal student aid. Though you may be overwhelmed by the amount of information required, you should fill one out regardless of your financial situation. Basic preparation and knowing what to expect can ease your way and even help you win a larger award.

FAFSA Basics

Is the FAFSA something you know you need to do but have procrastinated getting started? A few key facts should motivate you to learn more and get started:

• Submitting your application as early as possible really can make a difference in the amount of your award. In this case time really is money, so make a commitment to get prepared and get it done now.


• There are 130 questions on the application and many of them are financial. The good news? They are not a mystery. Knowing what is required will make it easier for you to prepare and complete this form.


• Some simple errors can cause your application to be returned, thereby delaying processing and possibly affecting how much money you might receive in Student Aid. Forewarned is forearmed -- take the simple steps outlined below to learn more and avoid costly mistakes.

Be Prepared

Many FAFSA questions will be easy to answer: name, address, Social Security Number, family information. Special guidelines do apply in the case of divorce and remarried parents, so don't assume you know the answers to all of the background questions which will come up. Understand the questions and gather necessary data before you begin.

The most important thing you can have at hand when you sit down to complete your FAFSA is your tax returns from the appropriate year. You will most likely also need your parents' returns and, if you live with a stepparent, theirs as well. The financial information required on this application is extensive and you will bog down quickly if you need to chase after each piece of information as you go. Having the IRS forms can make everything go quite smoothly. The application even provides specific 1040 line numbers that apply to the information required so you will know exactly where to go to find it on the tax returns.

Next, prepare a list of the schools you are applying to and which should receive your information. Be prepared to provide the code for each school along with your housing plans.

Online or On Paper?

While you may fill out a hard copy there are important advantages to completing the form online. There are also some tips to be aware of to ensure that your application does not get returned, delaying your processing.

Give yourself sufficient time, learn all you can before you start, and you'll be good to go!

How to Find Fast Loans For Students

How to get an 'Education loan'

The cost of education is getting higher day and day. To solve this problem, banks provide 'Education Loans' to all deserving students so that further studies become a good learning experience. Getting an education loan granted can be quite easy and one can apply online also for it.

To take an education loan from a bank, a student should take the following steps:

Step 1: Take the student loan application form from the bank and fill it correctly.
Step 2: Have a personal discussion with the bank authorities.
Step 3: Provide correct supporting documents to the bank with your signatures on them.
Step 4: Get a guarantor.
Step 5: Student signature on Promissory Note.
Step 6: Sanctioning of the loan or disbursal of the loan to the student.

All the above six steps have to be followed by the applicant. Now let us discuss each step:

Step 1: Loan Application form from the bank

Just as for all the other kinds of loans, for an education loan also the banks provide an application form to the applicant which has to be filled correctly. The bank will ask for personal details and all information related to the course for which one is applying. Make sure the information is accurate and can be easily verified. This information will help the bank to process your application faster.

Step 2: Personal Discussion with the bank authorities.

Once the applicant has filled the form, the next step is the discussion with the bank authorities. In this stage, the applicant is asked about his/her academic and extra-curricular performance. At this stage, it is very important to be lucid and clear about one's selection of the course and its potential of generating income in the future.

Step 3: Provide correct supporting documents to the bank with your signatures on them

In case of education loans, the documents related to admissions are mandatory even before the bank considers the loan application. The bank will verify on every step of the enrollment of the student in the concerned institute in which he/she is studying. One may also require collateral security such as papers related to any property to be mortgaged if the loan amount is above 4 lakhs (INR).

Step 4: Get a guarantor.

For an education loan, a guarantor is mandatory.To get a loan approved there should be a person who takes the responsibility for the repayment of the loan in case of any mishap. The guarantor could be the applicant's parents or guardians. The bank will run a thorough check on the guarantor's credit history before sanctioning the loan. After the completion of the process, the loan may be sanctioned or denied.

Step 5: Student signature on Promissory Note

While the parents/guardians are guarantors, the student is the actual borrower of the loan. Once the loan is sanctioned, the student has to sign a promissory note to the bank.

Step 6: Sanction of the loan or disbursal of the loan to the student

Once the paper work formalities have been completed, the bank will surely disburse the loan into your account or deposit the fee directly into the account of the concerned college/institute.

All the above 6 steps will surely help you to understand the process of education loan. Once the loan has been approved you may contact the Admission Times for the further process.

Quick Money For Students - Applying For Scholarships and Grants

Scholarships and Grants do not necessarily sound like quick ways to raise money. Many students dismiss these financial sources as excessively time-consuming or unlikely possibilities. Unfortunately they miss out on what could be very rewarding opportunities.

While Scholarships and Grants take varying amounts of time to pursue there are simply too many of them, with too much money involved, to ignore. More than 3 million scholarships are available in the United States and they are worth over $16 billion. Amazingly, that number pales compared to the amount of money awarded by the U. S. Department of Education each year through grants and other awards: more than $150 billion!

What is the most effective way to get started? First, make the decision to start now. If you don't play you can't win, and fretting about finding money for school won't bring results. Get a quick overview at free sites that explain sources of student financial assistance and how to pursue them. Be sure you understand the differences among Grants, Scholarships and Financial Aid. They are not mutually exclusive and all should be important to you.

Second, never assume! Whether you think you might qualify or not, always apply for Financial Aid (which may include Grants and Loans) and Scholarships. Tackling both right from the start can get you more money faster.

Here are some key additional tips for pursuing Grants and Scholarships:

• File a Free Application for Federal Student Aid (FAFSA) whether you think you are eligible or not. Many families with incomes over $100,000 end up receiving some financial aid.


• File your FAFSA early. Early filing is important not just to avoid missing a deadline, but also to maximize the aid package you receive. Some federal funds are limited and are awarded on a first come, first served basis.


• A fast way to lose aid money is to neglect to file a FAFSA in each academic year. You must fill it out and submit every year you are eligible in order to receive funds.


• Scholarships are frequently overlooked as too intimidating or as having too distant a time horizon. In fact they vary greatly regarding eligibility, timeframes and requirements. There are even scholarships that are drawings based solely on luck. Some take place on a regular basis -- such as monthly -- and send the winner's award right away.


• Scholarships do not end in the fall so don't limit your efforts to one time of year. Many scholarships are offered year-round, and those with winter deadlines often have less competition than others.


• There are state aid packages that won't automatically get awarded through your FAFSA application. You should pursue those separately as they can be lucrative and typically have less competition than federal funds. Your school guidance counselor should be able to identify those but you should also do your own internet search. Include the name of your state (or even your county or home town) and words like "college grants" or "scholarships".


• If you are offered a Work-Study program in your financial aid package, by all means take it. Work experience rewards you financially, enhances your resume, and has even been shown to be associated with students achieving a higher Grade Point Average.

How You Can Get Scholarships For College Students

Getting a college education is very important in today's world. It's possible to make a livable income without a college education, but it's much more difficult. The problem that you may have already discovered is that college isn't cheap. So how do you afford college if you're not already rich? The answer is simple: use college student scholarships of course!

Scholarships are basically people paying for your education without you having to pay them back. Unlike loan money, you won't come out of school owing someone hundreds of thousands of dollars. College student scholarships can pay for books, tuition, and even room and board! So why would you want these? You can graduate from college and instead of many other graduates who then worry about finding a job quickly because they have to start repaying student loans, you won't have to pay back a nickel if you paid for your college education with scholarships.

There are tons of ways to get college student scholarships, too! There are ones that are awarded by the schools based on merit. This are ones where you write an essay or do some other project to earn your scholarship. You can also get them based on SAT and ACT scores or even your High School GPA. These scholarships will be very competitive since they're open to pretty much anyone. This can make it harder to get one of them. And if you do get one, it may not be more than a thousand dollars. But still, it's basically free money that'll pay for your education, and there is not a limit on how many scholarships you can receive.

There are also need based scholarships. These are often hosted by either the school or local charity groups. These scholarships are awarded based on an individuals need. They will primarily go to those who are minorities, those who are disabled, or those from extremely poor families. These will often pay for more and are easy to obtain since they're only open to those who fit the criteria. If you come from a low income family, you're only a quick search away from finding a college student scholarship to help you pay for your education.

A lot of companies offer scholarships as well. Some are offered to people who are already employed with them or have been offered employment. This is to help them ensure they have the best and brightest working for them. Many places will pay part or all of an employee's education so that they have smarter and more intelligent people working for them. To the company, it's an investment. Branches of the US military also offer scholarships to those who enlist. These are also great recruitment strategies for businesses.

Some of the businesses will also offer scholarships to the general public. Some of these are need based, others are merit based. They can have a lot more restrictions, like only being open to people from a certain area or for students who are enrolling in a specific university or degree program. They're usually in honor of the company founder and are given to students that are like that founder in regard to location or future goals.

The key here is to apply for each and every scholarship that you can find. I mean, EVERY one of them. The reason for that is because there are literally hundreds of scholarships available that go unawarded every year simply because nobody applied for them!

There are tons of college student scholarships out there. It's not too hard to find them if you are willing to put some time and effort into it. Whatever your education goals are, good luck!

Advice On How To Get A Scholarship

Scholarships can be tricky, and everybody wants to have one. But only few individuals are lucky enough to get them. In fact there are millions of scholarships which go unused every year. They are different from loans, they are free money and often boost the resume of an individual.

Nowadays there are different types, and one must make sure to know their types, amounts, time ranges & places for finding them. Moreover, there are few high schools that give scholarships before attending college. There are other scholarships that are based on merit, interest, need, culture, etc.

One of the best methods to begin with is by doing a proper research. You will find that each and every college or university has its own scholarship program. They are generally listed on their websites. Though, it's always better to inquire first. Once you get to know about them, you could then find their other aspects such as how much, how many, or the reasons for them. In fact scholarships are not just handed over to you; you have to do your part of research.

Below mentioned are some of the types of scholarships:

1. Merit Scholarships

These types of scholarships are pretty common. Those individuals who do extremely well in academics are awarded such scholarships based upon their overall academic achievements. They might be given in the case of excellent SAT scores, top GPA, etc. They are very competitive and may be awards in different forms.

2. Need-Based Scholarships

Such scholarships are awarded solely on the basis of financial needs. They have been created to help less-fortunate students for getting higher studies. Certain factors are taken into consideration by Committees such as number of siblings in the school, income of parents, living costs, expenses, etc.

3. Athletic Scholarships

Such types of scholarships are given by the universities to star athletes for recruiting them in the athletic teams. Several athletes are able to complete their education for free, but they need to give full commitment to their team sports. Generally the "scouts"recruit the full-scholarship athletes when they are in high school. As a student you do not have to pursue such type of scholarship, in fact it's given to you.

4. School-Based Individual Scholarship

Each one of the schools provides typical scholarships as per the specifics of university such as: individual name scholarship, donors, personal scholarships, etc. You may either directly apply for the scholarship or by being accepted you become the candidate in line for a possible scholarship award.

5. Full/Partial Scholarship

Most of the individuals have this common misconception that scholarships cover everything. Only few of the scholarships are full scholarships, and in case if you become lucky enough to get one, then it'll cover your tuition, books, living, etc. But most of the scholarships are partial and they only cover living, books or part of tuition. So if you are given any type of scholarship, you must feel honored to get one.

Though, most of the scholarships are school based, but still there are some others that are based upon almost all other personal essentials which could exist. There are numerous books & websites that have been specially designed to act as a guide to find scholarships. So here are few books & websites which could act as search agents & listings of every possible scholarship which exist. If you put sufficient effort you'll for sure find minimum of one or two scholarships which will match with your qualifications & interests. Though, it will take time & patience, but you will for sure find a scholarship that best suits you.

Getting Student Loans With No Credit: Vital Finance For College-Goers

College is not a cheap undertaking, with the cost of paying tuition fees every year very high. But there is little doubt that the investment in the future can be well worth the expense. Little wonder then that so many will seek to borrow to secure a college education. It is even possible to secure student loans with no credit.

The problem for many students is not always to secure funding the pay for their college fees, but to finance the living expenses that accompany life at university. From paying for accommodation to paying for grocery bills, these can be substantial too.

Thankfully, there are student loans available that can cover tuition and living fees. And perhaps most importantly, the fact it is possible to get loan approval with no credit check means even those with terrible credit ratings - or even none at all - can get the cash they need.

What No Credit Check Loans Mean

For those not in the know when it comes to the lending industry, the significance of no credit checks is quite high. Usually, a lender will check out the credit history of any applicants before deciding whether to grant the loan or not. But offering student loans with no credit means a category of borrowers normally excluded are now included.

A credit history is supposed to indicate how reliable the applicant is in terms of making repayments. However, lenders are willing to grant loan approval with no credit check because of the potential that the applicant has.

It is generally understood that a student will become a professional after graduation, and in many cases student loan repayments are deferred until after graduation day. Depending on the terms of the loan, there may be an interest-only payment agreement.

Advantage Of These Loans

There are several advantages to applying to lenders offering student loans with no credit. The main one is that the parents who have a poor credit history no longer need to worry about the education of their children.

Another key advantage is that the flexibility of the loan purpose means that a second loan is not needed to secure finance for living experience. Some loan packages are secured only for college fees, especially the federal loans that are available.

By granting loan approval with no credit check, it is possible to pay for expenses like rent, utility bills and grocery bills. However, the funds provided by the student loan will not be enough to finance everything, and it would be wise not to spend much money on socializing.

Securing Student Loan Approval

The key to securing loan approval is to provide a cosigner on the application. With a cosigner, the risk that the lender is accepting is lowered to practically nil. This makes getting a student loan with no credit pretty straightforward.

A cosigner provides a guarantee that the monthly repayments will be made on time, as he or she will step in to make the payment when the borrower is unable to make it. Receiving repayments on time is all that really matters, so granting loan approval with no credit checks makes perfect sense.

However, be prepared to accept higher interest rates since the option to ignore credit histories means the risk associated with the student loan is greater for the lender.

Student Bill of Rights: Helping Students With Loans

In the state of California, students have experienced dramatic increases in their tuition and other fees. This has often forced students to take on a number of private student loans in order for them to be able to continue their education. Unfortunately, upon graduation, many of these students are unable to pay these student loan debts back.

This is mostly due to the rising unemployment and underemployment rates in the country. These economic factors as well as the policy that prohibits loan forgiveness through bankruptcy have led to a skyrocketing of debts. On average, graduates can end up $26,000 in debt. However, there have been some extreme cases where people ended up owing more than $100,000.

In recent years, debt incurred from student loans has reached a record high. With figures now showing it to be well above $1 Trillion dollars, it has effectively become a serious problem. Some even go so far to say that it might even cause a worse crisis than the one prompted by the country's credit card debt.

In response to this, an influential legislative package called the Student Bill of Rights has been developed in California. This legislative package was introduced by Bob Wieckowski, a California Assembly member. He stated in an interview that education should serve as a road leading away from poverty. However, the grim state of the national student loan debts shows otherwise.

Wieckowski's Student Bill of Rights legislative package has three vital component pieces of legislature. Namely these are Assembly Bill 233, the Know Before You Owe Bill, and Assembly Joint Resolution 11.

Assembly Bill 223

Not being able to pay one's private student loans on time can lead to serious consequences. One of the most common things that can happen would be wage garnishments. For instance, those who are behind their student loan payments often lose 25% of their paycheck. The deducted amount would go directly to paying your debts.

Assembly Bill 233 is a bill with the goal of student debt relief in mind. To put it in clear terms, this new piece of legislation seeks to bar the implementation of wage garnishment orders on defaulted student loans which were not ordered or guaranteed by the federal government of the United States.

By putting a stop to the process of wage garnishment, the creditors will be put into a position where they have to establish a closer working relationship with the debtors. Through this legislation, more realistic and a more manageable repayment plans can be put forward. This plan for repayment will be formulated by the two parties involved, each giving valuable input on the subject.

This gives the debtors an opportunity to consolidate student loans. By doing so, they are able to put their finances in order. This will also better enable them to settle their loans in a more timely fashion.

Know Before You Owe Bill

A complementary piece of legislature to the Assembly Bill 223, known as the "Know Before You Owe" Bill, seeks to elevate the debtor's knowledge on the subject of student loan debts. This is done so by requiring students receiving private loans to attend loan counseling sessions upon entrance and exit. These counseling sessions will also require the attendance of the student's parents who are acting as co-debtor.

This is because most students who involve themselves in private loans often do so without having a basic knowledge of the details surrounding that particular loan. Many students sign up for student loans with unbelievably high variable rates. For instance, a number of these private loans run for more than 20%.

Aside from uncapped variable rates, a student loan can be risky in a number of different ways. These private loans often lack the necessary safeguards needed by the students. For instance, some of them lack flexible repayment plans. There are also those that lack deferment options.

Of course, the student's financial literacy should not start on the university level. Rather, it should start at a much earlier age. It has been suggested that such training should be made part of the K-12 system. This is in order to improve the students' understanding of personal finance and better appreciate the concepts of credits, savings, and budgeting. Having a basic knowledge of these will make it so that they are much better prepared these types of situation when they encounter it in the future.

Assembly Joint Resolution 11

For the longest time, declaring bankruptcy was not enough get a person out of his obligations towards private loans. In fact, students have not been able to do so since 2005. This created a particularly problematic situation.

Needless to say, Assembly Joint Resolution 11 was introduced to remedy this specific predicament. It urged Congress to amend particular federal laws surrounding bankruptcy. This resolution seeks to allow debt acquired through private loans to be dismissed when the debtor declares himself to be bankrupt.

Amid the continuously growing student loan debt problem in the country, there have been a number of attempts on the government's part to remedy the situation. Student Bill of Rights legislative package developed in California is the perfect example of such an attempt since its three key components deal with the various aspects problem itself.