Recently I wrote about a class-action lawsuit that could eliminate the student loans of many people. Read this.
MarketWatch just published a story on that same case. But a quote in that story by Navient blew me away. It’s worth putting in big bold letters.
Patricia Christel, a spokeswoman for the Navient, declined to comment on pending litigation, but noted in an email that the company supports reform “that would allow federal and private student loans to be dischargeable in bankruptcy for those who have made a good-faith effort to repay their student loans over a five-to-seven year period and who still experience financial difficulty.”
Navient supports reform making student loans eligible for bankruptcy? Well slap my ass and call me Sally.
Essentially what Navient is proposing is to roll back the bankruptcy reforms that previously passed and return bankruptcy law to what it once was. One reason might just be there was little need for the efforts to make student loan debt such a bondage of financial slavery because there was little abuse of those capabilities before reform was passed.