Oakland Press: Legislation proposes path to clear defaulted student loans from private lenders

College students who default on student loans from private lenders like banks would have the same opportunity to repair their credit as those who default on federal student loans, under legislation pushed by U.S. Sen. Gary Peters from Michigan.

The Bloomfield Township Democrat said Tuesday that there are more than 800,000 student loans from private lenders in default nationwide valued at more than $8 billion.

“Michigan’s going to have a pretty good percentage of the private student loans that are in default,” Peters said prior to the session of the Senate where he planned to introduce the legislation.

By:  Charles Crumm