While no one wants to file for bankruptcy, this consumer protection is a critical and essential element for any healthy lending system. By removing bankruptcy protections from student loans, Congress enabled a lending environment to take hold where defaulted loans are financially more lucrative than loans which remain in good stead- this is a defining characteristic of a predatory lending system, and cannot be sustained. Because is is impossible to discharge student loans, lenders have no reason to work out reasonable payment plans to debtors. By restoring bankruptcy protections to student loans, debtors would not only have a bargaining chip to encourage lenders to negotiate affordable payments, but those drowning in debt would find some relief and be able to live productive lives.
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