Allowing privately funded student loans (ie Sallie Mae, Chase, AES) to be consolidated into federal education loans will allow repayment terms to be based upon income, therefore reducing financial burden of Americans, post graduation. While federal loans AND private loans are not allowed to be discharged in bankruptcy, ONLY federal loans allow maximum deferment and forbearance terms, income based repayment plans and in some cases, loan forgiveness. If private loans are to be treated with the same standards as federal loans in bankruptcy, they should allow the student borrower the same protections that come with federal loans.
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