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Will The Fairness for Struggling Students Act Allow Me to Discharge My Private Student Loans in Bankruptcy? – Lexi

“Dear Steve,

I owe $25,000 in credit card debt and over $120,000 in student loan debt. Half are federal loans and half are private loans. I am a single mother of two little ones and the reason for my debt was mostly due to my failed marriage and going to an expensive school. I am getting ready to file for bankruptcy as I cannot afford to pay everything anymore.

I know that the student loan debt will not be discharged in bankruptcy, but with the proposed law in the Senate called “The Fairness for Struggling Students Act of 2013″ I am worried that I will file for bankruptcy and then a new law will be passed that will allow some bankruptcy help with private student loans. If this happens will I be able to do anything about it or since I filed then it’s too late? My lawyer doesn’t think the law will change, but I just want to know in case it does. Thank you so much!!!

Lexi”

Do You Have a Question You'd Like Help With? Contact Debt Coach Damon Day. Click here to reach Damon.

Dear Lexi,

There is no indication the law will become a reality. Similar laws have been suggested each year for the past few years and they’ve all gone nowhere.

The odds are significantly unlikely it will become a reality anytime soon.

On the federal loans, don’t forget to look at your consolidation and payment reduction options available. See the links below.

Please post your responses and follow-up messages to me on this in the comments section below.

Damon Day - Pro Debt Coach

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Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.
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