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Bill to Restore Bankruptcy Protections to Private Student Loans Advances in House

Federal legislation that would restore bankruptcy protections to private student loans cleared a first hurdle today, passing 6 to 3 in a vote by a panel of the House of Representatives Judiciary Committee. The bill, which has been offered in several previous congressional sessions, still faces long odds, however. Many Republicans oppose the measure, warning that it would drive up interest rates and further shrink the market for private loans, and the congressional legislative session is winding down. Only four weeks remain before the House’s target date to adjourn.

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