New Fed chair doesn’t understand why student debt can’t be discharged in bankruptcy
The new chairman of the Federal Reserve questioned why struggling borrowers can’t discharge their student loans in bankruptcy. “Alone among all kinds of debt, we don’t allow student loan debt to be discharged in bankruptcy,” Jerome Powell told members of the Senate Banking Committee Thursday. “I’d be at a loss to explain why that should be the case.” Powell’s comments came in response to a question from Senator Brian Schatz, a Democrat from Hawaii, about whether high levels of student debt create a drag on the economy. More than 40 million Americans hold nearly $1.4 trillion in outstanding student loans.
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by Jillian Berman, Market Watch.