Stop Forcing Students Into a Lifetime of Debt from Student Loans

Consumer Protection, Petitions — By Charles Pye on September 14, 2011 12:15 pm

Target: U.S. Congress

Goal: Allow student loan debt to be forgivable through bankruptcy

Student loan debt is ruining the lives of too many people.  The total value of student loan debt has now reached almost $1 trillion, which is more than the total amount of credit card debt.  The average debt at graduation has reached $24,000, and many students graduate with more than $100,000 of student debt.  With high interest rates and a weak job market, these students often have no hope of paying back such immense debt.  They will be in debt for the rest of their lives.

Worst of all, this debt is unforgivable!  Normally, someone who is deep in debt with no way to repay can escape by declaring bankruptcy- but for student loan debt, there is no such escape.  The bankruptcy law was changed in 2005 to prevent any escape from student debt.  The only other kind of debt that is unforgivable is debt that occurs because from committing a crime.  Is taking student loans really the same as committing a crime?

Since student loans are backed by the federal government, the private companies that service these loans make their money whether or not the student can repay.  They have no interest in helping students pay off their debts- they want students to be in debt as long as possible.

We need to change the system and allow some recourse for the students.  Tell Congress to offer them at least the possibility of escape from a life of debt.  Don’t let an entire generation of students become trapped as indentured servants.

PETITION LETTER

Dear Congress,

Student loan debt is a crippling problem for millions in this country.  The average student now graduates with $24,000 in debt, and many with more than $100,000.  Because of high interest rates and the weak job market, many of these people have no hope of ever paying back their student loan debt.  Worst of all, there is no way for them to discharge this debt by declaring bankruptcy.

We ask that you reform bankruptcy laws to allow forgiveness of student loan debt.  Don’t force student into a live as an indentured servant.  Bankruptcy is supposed to provide a way out for those who have no other escape.  We allow people to discharge mortgage debt and credit card debt through bankruptcy- only student loan debt and debt from criminal activity is considered untouchable.

Please, offer students a lifeline.  Don’t force them to live their entire lives in debt.  Give them a chance to rebuild their lives.

Sincerely,

[Your Name Will Go Here]