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S 1561 110th Congress Senate Finance and Financial Sector Bankruptcy Collection of accounts Education Higher education Student loan funds

A bill to amend title 11, United States Code, with respect to exceptions to discharge in bankruptcy for certain qualified educational loans.

Introduced: June 7, 2007 Introduced by: Durbin, Richard J. Democratic · Illinois See on congress.gov
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 Everywhere this bill has been 3 steps
Introduced
In committee
Reported out
Passed House
Passed Senate
To President
Became law
Jun 7, 2007
Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S7336)
Jun 7, 2007
Sponsor introductory remarks on measure. (CR S7335-7336)
Jun 7, 2007
Introduced in Senate
 Plain-English summary Congressional Research Service

Revises federal bankruptcy law with respect to the exemption from the exception to discharge in bankruptcy for certain educational loans if excepting such debt from discharge would impose an undue hardship on the debtor and debtor's dependents.

Limits such exemption to the existing ones for: (1) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit; and (2) an obligation to repay funds received from a governmental unit as an educational benefit, scholarship, or stipend.

Repeals the current exemption for: (1) any loan made under any program funded in whole or in part by a governmental unit or nonprofit institution; and (2) any other qualified education loan incurred by an individual debtor on behalf of the taxpayer, the taxpayer's spouse, or any dependent, including indebtedness used to refinance a qualified education loan. (Thus makes both kinds of loans nondischargeable in bankruptcy.)

What's happening now June 7, 2007

Read twice and referred to the Committee on the Judiciary. (text of measure as introduced: CR S7336)

 Committees of jurisdiction 1