Unlike federal student loans, private student loans can't be forgiven in bankruptcy and banks can garnish up to 25-percent of a student's wages.
Democratic Assemblymember Bob Wieckowski authored a bill he
says would help under-employed, debt-saddled graduates. He says the
bill would simply eliminate one way private lenders can collect
repayment.
WIECKOWSKI: "Creditors, I believe will be more inclined to
work with the debtor and figure out a repayment plan that these
young people can manage."
But Republican Assemblymember Don Wagner says the bill could
limit the number of loans available to college students.
WAGNER: "The students that will be hurt by this, those
that will be driven out of the market are perhaps the ones most in
need of these loans, yes they're incurring debt, but that is their
ticket to a college education."
The bill would not affect federal student loans.
It passed on a party line vote.