S.114 - Fairness for Struggling Students Act of 2013113th Congress (2013-2014)
|Sponsor:||Sen. Durbin, Richard [D-IL] (Introduced 01/23/2013)|
|Committees:||Senate - Judiciary|
|Latest Action:||01/23/2013 Read twice and referred to the Committee on the Judiciary. (All Actions)|
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- Finance and Financial Sector
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Summary: S.114 — 113th Congress (2013-2014)All Bill Information (Except Text)
Introduced in Senate (01/23/2013)
Fairness for Struggling Students Act of 2013 - 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 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.)