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Is bankruptcy the solution for the student loan crisis?




Students protest the rising costs of student loans for higher education
Students protest the rising costs of student loans for higher education
David McNew/Getty Images

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This morning, President Obama spoke on the rising costs of college. The Consumer financial Protection Bureau estimates that student loan debt in the U.S. is close to 1.2 trillion dollars.

College grads who run into financial trouble have no way to shed that debt, short of dying, that is. Student loans are virtually the only type of loan can't be discharged in bankruptcy court.

A new report from the Center for American Progress argues that changing that rule would be good for students and taxpayers too.

David Bergeron is the vice president for Postsecondary Education at the Center for American Progress and a co-author of the report.