Senator Elizabeth Warren (D-Mass) does not think enough is being done to help college graduates pay back their student loans. While she did not outline a specific proposal she said Congress could do more to help those with student loan debt. She said giving better funding to public colleges would be a way to help.
“We stepped a piece at a time into making student loans impossible to deal with when a person hits a financial crisis, there are a lot of steps we could take back out of that.” Warren stated.
Warren has presented legislation that would rescind a 2005 reform that made private student loans unaffected by filing for bankruptcy. In other words. Warren and the 35 consumer and student advocacy groups who back the legislation would like filing for bankruptcy to discharge any private student loans.
She feels that Americans with private education loans who fall on hard times deserve bankruptcy relief and a fresh start just like everyone else.
The government makes massive profits on student loans. During the last Congress debate over federal student loan interest rates, warren presented a bill that would lower them drastically, but it gained no traction. It is crushing people and the amount young people with student loans owe keeps going up and up.