As students, we’re facing somewhat slow economic times, increasing interest rates and not too many jobs for the taking. And just when we needed a break on our student loans, the government goes and passes a law that makes it all that much harder to get rid of them.

Congress passed a bankruptcy reform bill on Thursday that will make filing for bankruptcy more difficult and give banks and credit lending agencies more aid in reclaiming what is owed to them in some cases. All that is left to make the bill become law is President George W. Bush’s signature – which he has promised to provide.

While this bill is a step in the right direction – people should pay what they owe – it fails to hold creditors responsible. The bill encourages Americans to be more financially shrewd, but it gives creditors more leeway to be reckless in their lending practices because they will now be more likely to get something back somehow – whatever the cost.

Under new qualifying test rules, students who cannot get a job – and therefore cannot pay off their loans – may not be able to file under Chapter 7. Because the new law removes judicial review of separate cases, it now becomes a question of whether or not one can pay 25 percent of the unsecured debt or whether one’s income is above the state’s median level. If the answer is yes to either of those questions, students will not be allowed to file under Chapter 7 – which allows for cancellation of most debt and all asset liquidation except those exempt by the state – which, in this sluggish economy, becomes a frighteningly real possibility.

Furthermore, those who want to declare bankruptcy must meet with a credit counselor six months prior to filing and attend money management classes before any debts are discharged. The filers must also pay for any fees charged, which is ridiculous when the reason they are filing for bankruptcy is because they have no money in the first place.

The new law also forces bankruptcy attorneys to verify client information to avoid fees and fines for inaccuracies. This only makes it harder for truly bankrupt people to find lawyers that are willing to go through the extra effort or pay more to convince one to represent them – something debtors cannot afford.

The bill also does not exempt military personnel recently returned from Iraq and Afghanistan from the new changes – although it is hard to keep track of one’s finances while being shot at in the hills of Afghanistan or the streets of Baghdad. Those with large medical bills are also not exempt from the bill’s debt payment rules. Since the law already makes it more difficult to qualify for bankruptcy, those with less-well-off backgrounds will not be able to erase their medical debts through a Chapter 7 filing. The last thing anybody with a medical emergency wants to think about is the cost of treatment, yet those that do not have the money may be unfairly punished.

Moreover, the bill does not protect those that are victims of financial identity theft – a growing problem in the United States, according to the Federal Trade Commission. It seems unfair that the victims of identity theft be held liable for debts they did not run up.

The idea that people should pay what they owe is fine. However, along with working out the bill’s kinks, the government needs to spend extra effort in educating people about fiscal responsibility. Bankruptcy is usually a process, a reflection of habits over time, and does not occur overnight, but there are exceptions to the rule that the bill should have addressed.