Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023 This bill requires a bankruptcy court to grant a debtor attorney's fees and the costs of the proceeding if (1) the debtor's student loan debt is discharged on the basis of undue hardship, and (2) the court finds that the creditor's position was not substantially justified.
Impact
If enacted, HB 306 could significantly alter the landscape of student loan debt management in bankruptcy proceedings. Currently, many debtors struggle to effectively navigate the complexities of bankruptcy law, especially concerning the discharge of student loan debts. This bill addresses a glaring gap in existing protections, aiming to ensure that individuals seeking relief from overwhelming student loans are not hindered by additional costs, such as attorney fees that may arise during the process of securing a discharge based on undue hardship.
Summary
House Bill 306, known as the 'Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023', seeks to amend Title 11 of the United States Code to provide greater protections for debtors with student loan debts in bankruptcy cases. The bill explicitly requires bankruptcy courts to grant attorney's fees and related costs to debtors when their student loan debt is discharged on grounds of undue hardship and the creditor’s position is deemed not substantially justified. This amendment aims to ease the burdens on individuals facing severe financial distress related to education-related debts.
Contention
Notable points of contention surrounding HB 306 include the potential financial impact on creditors and the student loan servicing industry. Opponents of the bill may argue that it could encourage more individuals to file for bankruptcy on their student loans, potentially leading to a higher rate of defaults. Furthermore, there may be concerns regarding the implications of labeling creditor claims as 'not substantially justified', which could affect lending practices and may lead to cautiousness from lenders when issuing student loans. Advocates, however, emphasize the necessity of ensuring that debtors are treated fairly within the bankruptcy system, particularly given the unique challenges posed by student debt.
Private Student Loan Bankruptcy Fairness Act of 2023 This bill modifies the treatment of certain student loans in bankruptcy. Specifically, it allows private student loans to be discharged in bankruptcy regardless of whether a debtor demonstrates undue hardship. Under current law, student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.
Stopping Home Office Work's Unproductive Problems Act of 2023 or the SHOW UP Act of 2023 This bill requires each executive agency to reinstate the telework policies that were in place on December 31, 2019. Agencies may not implement expanded telework policies unless the Office of Personnel Management certifies that such policies, among other requirements, will have a positive effect on the agency's mission and operational costs.
Vaccine Discharge Parity Act This bill ensures that members of the Armed Forces who were granted a general discharge under honorable conditions (on the sole basis that the members failed to obey a lawful order to receive a vaccine for COVID-19) are eligible for Department of Veterans Affairs (VA) educational assistance under the Montgomery GI Bill-Active Duty and Post-9/11 GI Bill programs. The bill also extends certain loan fee rates through March 1, 2031, under the VA's home loan program.
Supporting Providers of English Language Learning Act or the SPELL Act This bill allows elementary and secondary school teachers who teach English learners, bilingual students, or dual language immersion students to receive additional amounts of student loan forgiveness and loan cancellation.