WASHINGTON, DC – on July 14: Sen. John Cornyn (R-Texas) speaks during a press conference about the southern border at the U.S. Capitol on July 14, 2021 in Washington, D.C. (Drew Angerer/Getty Images)
The Senate Judiciary Committee has introduced a new piece of legislation to address student loan debt. On Tuesday, Republicans and Democrats gathered on Capitol Hill for a hearing as they introduced the Fresh Start Through Bankruptcy Act of 2021.
Texas senator and bill co-sponsor, John Cornyn (R), said the bill would hold colleges accountable while also providing relief to struggling students.
Unlike the far-left goal of total student loan forgiveness, the Fresh Start Through Bankruptcy Act of 2021 only discharges after ten years of consistent payments. In order to qualify, the borrower also needs to show “undue hardship” as a result of the loan payments.
The bill would also reverse a 2005 act by Congress, which made student loan bankruptcy harder to achieve. Cornyn said schools provide useless degrees while charging astronomical costs and not properly educating their consumers, who are ultimately the students. The Republican went on to say the staggering amount of people with student loans indicates a larger problem within the higher education system.
BREAKING: During a hearing on #StudentLoanBankruptcyReform, Chair @SenatorDurbin announces a NEW bipartisan bill with Sen. @JohnCornyn. The FRESH START Through Bankruptcy Act would restore the option of dischargeability for federal student loans after a waiting period of 10 yrs. pic.twitter.com/GqdufLagFk
— Senate Judiciary Committee (@JudiciaryDems) August 3, 2021
Illinois senator and chairman of the Senate Judiciary Committee, Dick Durbin (D), began the hearing by reading testimonials from borrowers who described their crippling debt. The federal reserve said around 30 percent of U.S. adults have incurred some sort of debt for their education with monthly payments ranging between $200 and $300.
According to the chairman, current student loan code makes it extremely difficult for borrowers to get their loans forgiven. Experts noted college tuition has more than doubled in the last 20 years. Cornyn said while his bill aims to help the borrower, it also goes after the higher education industry for “playing with House money.”
According to Cornyn, the bill punishes schools who don’t properly council their students. “Some schools have taken advantage of the American taxpayer for too long, and the students are the ones harmed by their excess,” said the senator.
Meanwhile, federal student loan payments have been stalled for over a year from the start of the COVID-19 pandemic. Payments are set to resume Oct. 1 of this year as no further action has been taken by the federal government.
Source: One America News Network
