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ABI Consumer Bankruptcy Commission Provides Recommendations for Department of Education's Evaluation of Student Loans in Bankruptcy
The ABI Commission on Consumer Bankruptcy provided recommendations in response to the Department of Education’s request for information (RFI) on the evaluation of undue hardship claims in adversary actions seeking student loan discharges in bankruptcy. “The Department of Education plays an important role in the administration of the student-loan system,” Commission co-chairs Hon. William H. Brown (ret.) and Hon. Elizabeth L. Perris (ret.) write in a letter provided with the recommendations. “Action at the regulatory level could have a major effect in alleviating the growing burdens of student debt on everyday Americans and the overall economy.” The Department of Education published its RFI in the Federal Register on Feb. 21 seeking “public comment on factors to be considered in evaluating undue hardship claims asserted by student loan borrowers in adversary proceedings filed in bankruptcy cases.” While the Commission is working on a report of recommendations improving the overall consumer bankruptcy system to be published at the end of the year, it agreed to release several regulatory recommendations that directly respond to the RFI. Click here to read the full submission to the Department of Education.
