Bill Text: NJ AR89 | 2020-2021 | Regular Session | Introduced
Bill Title: Urges Congress to pass H.R.770 allowing for discharge of student loan debt in bankruptcy.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-02-13 - Introduced, Referred to Assembly Higher Education Committee [AR89 Detail]
Download: New_Jersey-2020-AR89-Introduced.html
Sponsored by:
Assemblywoman GABRIELA M. MOSQUERA
District 4 (Camden and Gloucester)
SYNOPSIS
Urges Congress to pass H.R.770 allowing for discharge of student loan debt in bankruptcy.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the Congress of the United States to pass H.R.770 which allows for the discharge of student loan debt in bankruptcy.
Whereas, As government investment in higher education has decreased, students have increasingly relied upon student loans to fund their bachelor and graduate degree studies. Currently, approximately 45 million Americans owe nearly $1.5 trillion in student loan debt; and
Whereas, Approximately 70 percent of bachelor's degree recipients graduate with student loan debt at a time when a bachelor degree is becoming increasingly necessary in order to be competitive in the job market; and
Whereas, An onerous student loan burden has impacted student lives by, in many instances, forcing student loan debtors to delay the achievement of such life goals as moving out of their parents' house, purchasing a home, marrying, having children and saving for retirement. In addition to affecting their buying power, student loan debt may also impact the student's career choice after graduation; and
Whereas, Student loan debt is increasingly threatening the financial stability of American households as one in four student loan borrowers is either in delinquency or default on their student loans; and
Whereas, In many instances, American households are unable to escape the crushing burden of student loan debt through bankruptcy because student loan debt is currently dischargeable in bankruptcy only in very limited circumstances; and
Whereas, Currently pending before the Congress of the United States is H.R.770, the "Discharge Student Loans in Bankruptcy Act of 2019"; and
Whereas, This bill recognizes the plight of Americans struggling with an unsustainable student loan debt burden and would amend the laws of the United States of America to allow the discharge of student loan debt in bankruptcy; and
Whereas, Currently, student loan debt is dischargeable in bankruptcy only upon a showing of undue hardship pursuant to 11 U.S.C. 523(a)(8). These bills would remove the "undue hardship" requirement for the discharge of student loan debt and align the requirements for discharge of student loan debt with the general requirements for the discharge of consumer debt; and
Whereas, Discharge of student loan debt in bankruptcy would allow student loan debtors a chance to address their debt burden through bankruptcy and achieve a fresh financial start, an avenue which bankruptcy affords the holders of other debts; and
Whereas, To permit the discharge of student loan debt in bankruptcy would allow millions of Americans a chance to begin their life anew and to achieve quintessential American goals such as the purchase of a house or motor vehicle which, in turn, would help to drive economic growth; and
Whereas, It is altogether fitting and proper for the United States of America to formally recognize the student loan debt crisis engulfing the nation and align the requirements for the discharge of student loan debt in bankruptcy with those for the discharge of consumer debt in bankruptcy; and
Whereas, It is altogether fitting and proper for the State of New Jersey to urge the House of Representatives of the United States to pass H.R.770, the "Discharge Student Loans in Bankruptcy Act of 2019"; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. The General Assembly of the State of New Jersey respectfully urges the United States Congress to pass H.R.770, currently pending before the House of Representatives, which would allow the discharge of student loan debt in bankruptcy through the same procedure as the discharge of other consumer debt in bankruptcy.
2. Copies of this resolution, as filed with the Secretary of State, shall be transmitted by the Clerk of the General Assembly to Majority and Minority leaders of the United States Senate, Speaker of the House of Representatives, Minority leader of the House of Representatives, and every member of Congress elected from this State.
STATEMENT
This resolution urges the Congress of the United States to pass H.R.770, the "Discharge Student Loans in Bankruptcy Act of 2019," currently pending before the House of Representatives. This bill recognizes the crushing burden of student loan debt suffered by many and proposes a solution to this crisis. Specifically, this bill would allow the discharge of student loan debt in bankruptcy by aligning the requirements to discharge student loan debt with the requirements to discharge other debt in bankruptcy. The recognition of the problem and the proposed solution is fitting and proper in light of the enormous student loan debt burdening many Americans today.
