HR0620LRB098 14334 GRL 48960 r

1
HOUSE RESOLUTION

 
2    WHEREAS, Student loan debt is the only type of consumer
3debt in our nation's history to be categorically excluded from
4protection under our bankruptcy code; and
 
5    WHEREAS, Less than 1% of federally guaranteed loans were
6actually discharged in bankruptcy prior to the enactment of
7this exclusion; and
 
8    WHEREAS, Both the Consumer Bankers Association and the
9American Bankers Association openly opposed such
10discriminatory treatment of student loans; and
 
11    WHEREAS, The federal government has stripped away numerous
12other consumer protections from borrowers of student debt, such
13as statutes of limitation on the collection of such debt, the
14ability to refinance interest rates, and protection under the
15Truth in Lending Act; and
 
16    WHEREAS, The federal government presently generates a
17substantial profit from the origination of student loans, while
18countless borrowers default on their repayment obligations,
19because such loans are not protected under standard bankruptcy
20and consumer law; and
 

 

 

HR0620- 2 -LRB098 14334 GRL 48960 r

1    WHEREAS, The removal of these basic consumer protections
2has coincided with an exponential growth in the cost of
3attending many of our State colleges and universities; and
 
4    WHEREAS, The return of these standard consumer protections
5will require the Department of Education to take its oversight
6role seriously, reduce the cost of college tuition, and
7decrease the current default rate; therefore, be it
 
8    RESOLVED, BY THE HOUSE OF REPRESENTATIVES OF THE
9NINETY-EIGHTH GENERAL ASSEMBLY OF THE STATE OF ILLINOIS, that
10we urge Congress to restore full bankruptcy protections to all
11student loans, both private and federally guaranteed, as well
12as other standard consumer protections, such as statutes of
13limitation on the collection of student loan debt, protection
14under the Truth in Lending Act, and the ability to refinance
15interest rates on student loans; and be it further
 
16    RESOLVED, That suitable copies of this resolution be
17delivered to the members of the Illinois congressional
18delegation.