The Department of Justice on Nov. 17 announced a new process that it says will make it easier for individuals struggling with their student loan debt to discharge it in bankruptcy.
“The new process will help ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings and make it easier to identify cases where discharge is appropriate,” the DOJ said in a press release.
Currently, individuals who wish to discharge their student loan debt face a tough process in which they must demonstrate that they will suffer “undue hardship” unless the debt is discharged. As part of the undue hardship analysis, courts will evaluate the borrower’s past, present, and future financial circumstances to see if they qualify for relief…. Source
Biden Admin Rolls out ‘Easier’ Process for Student Loan Borrowers to Discharge Debt in Bankruptcy
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