In a report published today, DBRS analysts said that this renewed interest in reforming the bankruptcy law to make writing off student loan debt a possibility will not necessarily create the "moral hazard" some lenders fear.

Under the current bankruptcy law, private student loans are non-dischargeable. However, both a recent paper released by the Consumer Financial Protection Bureau (CFPB) on private student lending released this summer and a renewed effort by Senator Richard Durbin (D-Illinois) of the U.S. Senate Subcommittee on Financial Services and General Government have brought more traction to the issue.

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