Debtors with student loans will be interested to see how this piece of legislation comes through the grinding process of Congress. Rhode Island Senator Sheldon Whitehouse has proposed that debtors who have paid at least $10,000 in medical bills during the three years prior to filing bankruptcy be defined as “medically distressed debtors.” Any debtor falling into this category would be allowed to discharge his or her student loans through a bankruptcy. However, must agree that the legislation has little chance of passing.

For the full story read, “Bill Would Let ‘Medically Distressed’ Cast Off Student Loans.”

Image credit: Chris Potter