Senator Durbin calling for a change in student loans

By WEEK Producer

March 28, 2012 Updated Mar 29, 2012 at 10:25 AM CDT

Change may be coming to how students borrow money, and pay off their college debt.

Illinois Senator Dick Durbin held a hearing last week to raise awareness of the difficulty that students have when paying off private student loans.

The danger in these loans is that they tend to have high variable interest rates, with rates as high as 18 percent.

Student debt from these loans is also not treated with the same bankruptcy laws as with other debt.

Today, Durbin called for a re-structuring, he said, "There is no reason why private student loans should be treated any differently in other private debts in bankruptcy. It's especially egregious that these private loans are non dischargeable in cases where the student was steered into a loan while they were still eligible for safer lower cost federal loans."

Student loan debt in America has reached a record high of one trillion dollars, that's higher than the nation's credit card debt.

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