Shutterstock
Feb. 21, 2018
Clare McCann was quoted in Inside Higher Ed on allowing bankrupt borrowers to discharge their loans:
Clare McCann, deputy director of higher education policy at New America and a former Obama Education Department official, said the department’s call for comments appears to signal that it wants to broaden the definition of undue hardship. She said whatever change the department or Congress makes will have to strike the proper balance.
“You want to make sure it captures people who aren’t able to pay and won’t be able to pay over the long run, so you’re not wasting energy collecting debts you’ll never be able to collect on,” she said of the standards.
Opening up bankruptcy standards too wide, McCann said, could mean the federal student loan program becomes much more costly.