If you’re struggling to pay credit card debt, car loans or even gambling debt, you can wipe the slate clean in bankruptcy. Struggling to pay your student loans? Sorry, you’ll just have to figure that one out on your own. In an effort to shed light on a policy they say “doesn’t make any sense,” a group of bankruptcy lawyers issued a report on Tuesday that highlights the need to change the U.S. bankruptcy code so that it offers college grads relief from inescapable debt loads. In the report from the National Association of Consumer Bankruptcy Attorneys (NACBA), four out of five of the 860 lawyers surveyed said the number of potential clients they encounter with student loan debt has “significantly” or “somewhat” increased over the past 3 to 4 years. (MORE: Even Counterfeiters Are Trading Down These Days) It’s no surprise that student loan debt is a major concern. Federal and private student loan debt surpassed credit card debt for the first time in 2010 and is expected to hit $1 trillion this year. At the same time as college graduates are experiencing record-high debt, they are offered little opportunity to get back on track. “There’s no way to diffuse the bomb if the status quo stays the same,” NACBA Vice President John Rao said in a press call with reporters. Which is why the group is calling on Congress to pass legislation that would allow graduates to discharge loans they took out from private lenders, including for-profit companies like banks and student loan giant Sallie Mae. Similar legislation has been submitted over the past two years by Democrats without making much progress, but nevertheless, NACBA is hoping this year will be different. Changing the nation’s bankruptcy code wouldn’t just give the group of lawyers more work, it would offer an option for students to get rid of debt that, at its core, is not really any different from other types of debt that the government does allow borrowers to discharge. “It’s kind of strange that credit cards are … Continue reading Why Can’t You Discharge Student Loans in Bankruptcy?