Should bankruptcy (consumer) protections be redefined for student loans?

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Currently in the USA, one cannot eliminate the debt of student loans unless you are A) a vegatable, B) totaly disabled, C) participating in an approved loan forgiveness occupation, D) bankruptcey under hardship conditions. The current bankruptcy definition of hardship condition, Is extreamly limited. It does not include people whose level of resources are enough to allow them to live a standard of living just slightly above that of bare survival, let alone the added burden of Student loans that are growing at a rate faster than the persons resources are. Should these people be included in the Bankruptcy courts defintion of hardship discharge?

Should bankruptcy (consumer) protections be redefined for student loans?

I do feel the definitions on student loans and bankruptcy should change, just as the student loan industry is evolving amidst sudden change. Loan companies also need to be less aggressive and students really need to do their homework, learn about finances and compare lenders before applying for a student loan. Many of the colleges who got in "trouble" with respect to the student loan scandal in 2007 need to spend more of their new funds on financial literacy as it could prevent many from these unfortunate bankruptcies.

Generally speaking, currently, a "hardship discharge" is available only to a debtor whose failure to meet their repayment plans is due to circumstances beyond a debtor鈥檚 (borrower's) control - through no fault of the borrower - "after" creditors have taken possession of the same amount of money they would have received (in a Chapter seven case) and after efforts to modify the repayment plan proved to be a lost cause. BTW, Injury or illness that prevents employment "able to sustain a modified repayment plan" can sometimes serve as grounds for "hardship discharge."

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Should bankruptcy (consumer) protections be redefined for student loans?

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