A Senate banking bill that is designed to roll back rules made after the 2008 financial crisis would extend a helping hand to struggling student loan borrowers. On Thursday, Sen. Dick Durbin (D-Ill.) introduced an amendment to the bill that would give people who have taken out private student loans the power to cancel that debt if they file for bankruptcy protection, WSJ Pro Bankruptcy reported. The amount of private student loan debt currently stands at $165 billion, he said. The Democratic Whip’s amendment would eliminate the 2005 rule that made canceling private student loans very difficult, even for borrowers who face extreme financial problems. In a speech on the Senate floor, Sen. Durbin told his colleagues that bankruptcy judges have the power to cancel loans borrowed for homes, boats and other property. Their power, however, stops at student loans, he said. The measure has support from several Senate colleagues, including Jack Reed (D-R.I.), Elizabeth Warren (D-Mass.), Patty Murray (D-Wash.), Sherrod Brown (D-Ohio), Richard Blumenthal (D-Conn.), Tammy Baldwin (D-Wis.), Tammy Duckworth (D-Ill.), Sheldon Whitehouse (D-R.I.), Maggie Hassan (D-N.H.) and Chris Van Hollen (D-Md.).
