College students wouldn’t face the threat of lenders garnishing their wages if they can’t repay private student loans under a bill passed by the California Assembly today. Amy Quinton reports from Sacramento.
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.