Congressman Shri Thanedar Introduces Bill to Stop Abusive Student Loan Collection Practices

Congressman Shri Thanedar Introduces Bill to Stop Abusive Student Loan Collection Practices

Washington, D.C. - Congressman Shri Thanedar (MI-13) introduced The Stopping Abusive Student Loan Collection Practices in Bankruptcy Act, legislation that seeks to amend the federal bankruptcy code to allow a debtor to prove that his or her student loans should be discharged in bankruptcy proceedings.

"No one should go bankrupt because they obtained an education," said Rep. Thanedar. "My Stopping Abusive Student Loan Collection Practices in Bankruptcy Act would protect borrowers and allow them to discharge their student loans through bankruptcy proceedings, with attorneys' fees paid by the lender."

Under current bankruptcy law, student loan debt is generally non-dischargeable unless the debtor proves that repayment would impose an "undue hardship." This legislation would expand protections under the "undue hardship" standard, meaning that if a debtor can prove hardship, the losing lender would be responsible for the debtor's attorneys' fees.

The full text of the bill can be viewed here.

Congressman Shri Thanedar proudly represents Michigan's 13th Congressional District, which includes Detroit, Downriver, and the Grosse Pointes. As a champion for working families, Shri is committed to advancing economic opportunities, education, healthcare access, and entrepreneurship for underserved communities. Drawing from his journey from poverty to success, he works tirelessly to uplift Metro Detroit, ensuring every resident has the resources and support they need to thrive.

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