S.1102 - Fairness for Struggling Students Act of 2011112th Congress (2011-2012)
|Sponsor:||Sen. Durbin, Richard [D-IL] (Introduced 05/26/2011)|
|Committees:||Senate - Judiciary|
|Latest Action:||03/20/2012 Committee on the Judiciary Senate Subcommittee on Administrative Oversight and the Courts. Hearings held. With printed Hearing: S.Hrg. 112-899. (All Actions)|
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- Finance and Financial Sector
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Summary: S.1102 — 112th Congress (2011-2012)All Bill Information (Except Text)
Introduced in Senate (05/26/2011)
Fairness for Struggling Students Act of 2011 - Revises federal bankruptcy law with respect to the exemption from the exception to discharge in bankruptcy for certain educational loans if excepting such debt from discharge would impose an undue hardship on the debtor and debtor's dependents.
Limits such exemption to the existing ones for: (1) 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; and (2) an obligation to repay funds received from a governmental unit as an educational benefit, scholarship, or stipend.
Repeals the current exemption for: (1) any loan made under any program funded in whole or in part by a governmental unit or nonprofit institution; and (2) any other qualified education loan incurred by an individual debtor on behalf of the taxpayer, the taxpayer's spouse, or any dependent, including indebtedness used to refinance a qualified education loan. (Thus makes both kinds of loans nondischargeable in bankruptcy.)