You probably know that the amount of student loans has skyrocketed during the past several years, and many borrowers are struggling to make payments.
As the May Elliott Wave Financial Forecast noted, student loans is an arena that is ripe for deflation:
A creeping trend toward the liquidation of outstanding debts provides further evidence of a lurking deflation. Student-loan debt is a prime example; [with a] steady rise to more than $1.5 trillion. In recent weeks, Democratic presidential candidate Elizabeth Warren put forward a massive student loan forgiveness plan. Warren wants to do away with "as much as $50,000 in student debt for anyone with household income of less than $100,000."
Since the May Elliott Wave Financial Forecast published, Forbes ran a story with the title "Elizabeth Warren: Cancel Student Loans In Bankruptcy" (May 13). Here's an excerpt:
Will you be able to discharge your student loans in bankruptcy?
Elizabeth Warren hopes so.
Here's what you need to know.
The Student Borrower Bankruptcy Relief Act of 2019
A new bicameral bill in Congress may help the nation's 44 million student loan borrowers have access to bankruptcy relief.
U.S. Senators Dick Durbin (D-IL) and Elizabeth Warren (D-MA) as well as U.S. Representatives Jerrold Nadler (D-NY) and John Katko (R-NY) introduced The Student Loan Borrower Bankruptcy Act of 2019, which would eliminate the section of the U.S. bankruptcy code that prevents federal student loans and private student loans from being dischargeable in bankruptcy. The bill, if passed, would make student loans like all almost all other forms of consumer debt, such as mortgage and credit card debt.
"Long before I came to the Senate, I fought my heart out to keep student loans dischargeable in bankruptcy," Warren said. "But over and over again, Congress chipped away at this critical protection for student loan borrowers."
This proposed bankruptcy legislation comes weeks after Warren, a 2020 presidential candidate, proposed cancelling student loan debt and making college free for millions of Americans.
You can read the entire article by following the link below: