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S. 3219 Fairness for Struggling Students Act 2010

Gotta give equal time here…

Senators Durbin, Franken and Whitehouse have introduced this bill to reintroduce bankdruptcy discharge rights to students with private student loan debt (yay)

Their version of the bill reads thusly:

Section 523(a)(8) of title 11, United States Code, is amended by striking `dependents, for’ and all that follows through the end of subparagraph (B) and inserting `dependents, for an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit or made under any program funded in whole or in part by a governmental unit or an obligation to repay funds received from a governmental unit as an educational benefit, scholarship, or stipend;’.

The law, which currently says:

(8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents, for—
(A)
(i) an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution; or
(ii) an obligation to repay funds received as an educational benefit, scholarship, or stipend; or
(B) any other educational loan that is a qualified education loan, as defined in section 221(d)(1) of the Internal Revenue Code of 1986, incurred by a debtor who is an individual;

Would now say:

(8) unless excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents, for an educational benefit overpayment of loan made, insured, or guaranteed by a governmental unit or made under any program funded in whole or in party by the a governmental unit or an obligation to repay funds received from a governmental unity as an educational benefit, scholarship, or stipend;

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