Student Loan Discharge & Bankruptcy

Student loan discharge in bankruptcy is no longer a myth. For years, borrowers were told the same thing over and over again: “You can’t discharge student loans in bankruptcy.” That statement is outdated. The proof is now published in the American Bankruptcy Law Journal. In “Bridging the Student Loan Bankruptcy Gap,” 99 American Bankruptcy Law Journal 414, Professor Jason Iuliano reviews what has happened after the 2022 Department of Justice and Department of Education reforms

Federal law provides several ways borrowers may legally eliminate student loan debt. These include bankruptcy discharge, disability discharge, borrower defense claims, and income-driven repayment forgiveness. Student Loan Discharges: Four Legal Ways Federal Loans Can End Federal law provides several ways borrowers may legally eliminate student loan debt. The four most important paths are bankruptcy discharge, disability discharge, borrower defense claims, and income-driven re