Earlier this week, the Private Student Loan Bankruptcy Fairness Act of 2010 (H.R. 5043) was introduced in the U.S. House of Representatives.

The Act would reverse current bankruptcy protections for private student lenders included in the 2005 bankruptcy law and allow most private loans to be discharged in bankruptcy. Prior to changes made in the bankruptcy code in 2005, only federal student loans and private loans where substantially all of the funds were provided by a non-profit institution were non-dischargeable through bankruptcy.

The bill, introduced by Rep. Steve Cohen (D-TN), is scheduled for a hearing today before the House Judiciary Committee’s Subcommittee on Commercial and Administrative Law.