Illinois Student Loan Guarantor May Help Bankrupt Former Students
One of the nation’s largest student loan guarantors, the Illinois Student Assistance Commission, is considering granting a break to former students mired in debt. Executive Director Andrew Davis has asked his staff to look into whether the agency can forgive interest and fees on student loan balances when a borrower files for bankruptcy.
Alan Collinge, founder of Student Loan Justice, said such a move would be “groundbreaking.”
Currently, borrowers who run into trouble paying back loans can see their balances double or triple with compound interest, late fees, and collection costs. Under federal bankruptcy law, it is nearly impossible to discharge student loan debt.