Bill Text: IL SR0640 | 2013-2014 | 98th General Assembly | Introduced

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Bill Title: Urges the United States Congress to provide equality of treatment under the law for all students by restoring full bankruptcy protections for student loans, both private and federally guaranteed, and to restore other standard consumer protections to student borrowers.

Sponsorship: Partisan Bill (Democrat 2)

Status: (Passed) 2013-10-23 - Resolution Adopted [SR0640 Detail]

Download: Illinois-2013-SR0640-Introduced.html

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SR0640 LRB098 14486 GRL 49214 r
SENATE RESOLUTION
WHEREAS, Student loan debt is the only type of consumer
debt in our nation's history to be categorically excluded from
protection under our bankruptcy code; and
WHEREAS, Less than 1% of federally guaranteed loans were
actually discharged in bankruptcy prior to the enactment of
this exclusion; and
WHEREAS, Both the Consumer Bankers Association and the
American Bankers Association openly opposed such
discriminatory treatment of student loans; and
WHEREAS, The federal government has stripped away numerous
other consumer protections from borrowers of student debt, such
as statutes of limitation on the collection of such debt, the
ability to refinance interest rates, and protection under the
federal Truth in Lending Act; and
WHEREAS, The federal government presently generates a
substantial profit from the origination of student loans, while
countless borrowers default on their repayment obligations,
because such loans are not protected under standard bankruptcy
and consumer law; and

SR0640 - 2 - LRB098 14486 GRL 49214 r
WHEREAS, The removal of these basic consumer protections
has coincided with an exponential growth in the cost of
attending many of our State colleges and universities; and
WHEREAS, The return of these standard consumer protections
will require the United States Department of Education to take
its oversight role seriously, reduce the cost of college, and
decrease the current default rate; therefore, be it
RESOLVED, BY THE SENATE OF THE NINETY-EIGHTH GENERAL
ASSEMBLY OF THE STATE OF ILLINOIS, that we urge the United
States Congress to provide equality of treatment under the law
for all students by restoring full bankruptcy protections for
student loans, both private and federally guaranteed, and to
restore other standard consumer protections to student
borrowers, such as statutes of limitation on the collection of
student loan debt, protection under the federal Truth in
Lending Act, and the ability to refinance interest rates on
student loans; and be it further
RESOLVED, That suitable copies of this resolution be
delivered to United States Speaker of the House John Boehner
and United States Senate Majority Leader Harry Reid.