Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 bill by the Department of Justice and vote summary by the US Senate support the claim.
Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 bill by the Department of Justice and vote summary by the US Senate support the claim.Until 2005, private student loans were eligible for bankruptcy protections just like other forms of private credit. But in 2005, the U.S. Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act. By implementing this law, private student loans were largely stripped of bankruptcy protections and this had a devastating impact of tripling such debt over a decade and locking in millions of Americans to years of gruelling repayments.
This Republican-led bill was supported by 18 Democratic senators with one of them being Joe Biden. While he played a central role in creating the student debt crisis in 2005, he is now promising to fix this in his presidential campaign in 2020.
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