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When did student loans stop being dischargeable?
Federal student loans became nondischargeable in bankruptcy proceedings in 1976. Before then, debtors could discharge student loan debt along with most types of consumer debt. That ended in 1976 when Congress amended the Higher Education Act of 1965.
Who owes the most student loan debt by race?
Black students
Statistics: Student loan debt by race Four years after graduating, Black students hold almost twice as much student debt as their white peers, largely due to differences in interest accrual and graduate school borrowing.
Why are student loans not dischargeable?
Any discharge of private student loans, regardless of the repayment timeline, would still require proving undue hardship. To help shoulder some of the financial cost to the federal government of this proposed change, the bill also includes an accountability measure for colleges and universities.
Who deregulated student loans?
Outstanding student loan debt is now at $639 billion. 2010: Legislation proposed under the Obama administration eliminates FFELP and now requires all new federal student loans to be Direct Loans as part of the Direct Lending Program, which was launched back in 1993.
What percent of Black Americans have student loan debt?
Black and African American bachelor’s degree holders have an average $52,000 in student loan debt. 45% of this debt is from student loans for graduate school. 40% of Black graduates have student loan debt from graduate school while 22% of White college graduates have graduate school debt.
How much does it cost to consolidate student loans?
Learn more about loan consolidation. A Direct Consolidation Loan allows you to consolidate multiple federal education loans into one loan at no cost to you.
Can I consolidate multiple federal student loans?
If you have multiple student loans you may be able to combine them into one loan with a fixed interest rate based on the average of the interest rates on the loans being consolidated. Learn more about loan consolidation. A Direct Consolidation Loan allows you to consolidate multiple federal education loans into one loan at no cost to you.
What is the Obama student loan forgiveness program?
What Is Obama Student Loan Forgiveness? The Obama Student Loan Forgiveness Program got started when, in 2009, the income-based repayment (IBR) plan first became available to students and graduates who made on time payments through the Obama administration.
What is consolidation of federal loans with private loans?
Consolidation of federal loans with private loans made those loans ineligible for IBR and Public Service Loan Forgiveness.