Obama could place college student loans to be discharged in bankruptcy court. This would lead to young voter turnout for Obama, 2012. Current students in default cannot place their federal or private loans in bankruptcy at the present because of the 2007 passage of the “College Cost Reduction Access Act.” With this new law, the students would avoid repayment. After the restructure of college loans, the US is responsible for more than 90% of recent loan origination.
The new report says that Congress should consider letting borrowers discharge their private student loans through bankruptcy. This would reverse a hard lesson learned during the 1970s. After a surge in former students declaring bankruptcy to avoid repaying their loans, Congress acted to protect lenders beginning in 1977.
President made a big deal over cutting student loan interest-rates to save a few bucks, and now he’s telling young voters he’s making it easier for them to avoid repaying at all. Obama wants votes at all costs.
Sidewalks Chalk 