Opinion

An Alternative to Student Loan Forgiveness

Make it easier to cancel student loan debt through bankruptcy

Image created by Jacquelyn Lynn using MockupShots

Instead of a wholesale cancellation of student loan debt, why not let the people who owe those loans and want to cancel them do it through bankruptcy?

Currently, it’s extremely difficult to discharge a student loan through bankruptcy. According to Nolo.com:

Erasing student loans isn’t included in a standard bankruptcy filing. Discharging student loans requires additional steps, and even if you take them, there’s still no guarantee the bankruptcy court will wipe them out. … Most bankruptcy lawyers advise bankruptcy filers that the process is complicated and costly, and bankruptcy judges only grant student loan debt relief in extreme situations.

The goal of federal bankruptcy laws is to give debtors a financial fresh start, to let them get out from under their debt and start over.

People who are having trouble repaying their student loans are likely having trouble paying other…