Nancy Conneely

Rep. @JimPressOffice Sensenbrenner concerned about potential abuse by recent grad/prof grads who might file for #bankruptcy right after graduation. John Rao of @NCLC4consumers says this would not happen due to safeguards in 2005 law (e.g., means-testing).

Rao of @NCLC4consumers goes on to say that GAO study from 1970/80s showed virtually no abuse by recent grad/prof graduates in #bankruptcy.

And @daliejimenez of @UCILaw says it's not just means-testing that would prevent abuse. #Bankruptcy judges could deny discharge in cases of suspected abuse.

In response to Q from @RepJerryNadler, @daliejimenez says #studnetloan debt exacerbates the racial wealth gap. Black borrowers are forced to borrow more for higher ed because they do not have as much familial wealth as white peers.

. @RepJayapal expresses concern that the federal government is charging so much interest on #studentloans that borrowers will never be able to get out form under their debt.

. @RepJayapal says she does not understand why #studentloan borrowers are held to a higher standard than businesses in # bankruptcy. Asks how we can bail out banks but not students.

A lot of comments from committee about how rising #studentloan debt creates a drag on the economy.

. @RepMGS points out that bill from @SenatorDurbin and @RepJerryNadler would NOT create special treatment for #studentloans in #bankruptcy, but would instead treat them the same as other forms of debt.

. @RepJoeNeguse digs deeper into purported rationales for making changes to #studentloans in #bankruptcy. Robert Keach of @abiworld says changes beginning in 1970s were due to concerns about moral hazard and solvency of federal student loan program.

Keach of @abiworld says most people now agree moral hazard/abuse did not come to pass. Says @abiworld commission recs attempt to address solvency issue (i.e., allow private loans to be discharged, allow federal loans after 7 years, etc.).