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Allows Bankruptcy for Private Student Loans
Recent Bills/Allows Bankruptcy for Private Student Loans

Allows Bankruptcy for Private Student Loans

IntroducedJanuary 15, 2025
Introduced1 year ago
Intro
House
Senate
Pres
Referred to the House Committee on the Judiciary.
More:Recently Introduced BillsEducationHouse Bills
Why This Matters

This bill allows individuals to include private student loans in bankruptcy filings, making it easier to eliminate these debts.

If you have private student loans and face financial hardship, this bill could help you discharge those debts in bankruptcy.
Who this affects
borrowers with private student loans
What changes is this bill making?
  1. 1This bill lets people discharge private student loans in bankruptcy, which is currently not allowed.
  2. 2It changes the rules so that certain educational debts can be wiped out if someone files for bankruptcy.
  3. 3The bill specifically targets private student loans, which are often harder to manage than federal loans.
  4. 4It applies to bankruptcy cases started after the bill becomes law.
Read the detailed summary

Private Student Loan Bankruptcy Fairness Act of 2025 This bill modifies the treatment of certain student loans in bankruptcy. Specifically, it allows private student loans to be discharged in bankruptcy regardless of whether a debtor demonstrates undue hardship. Under current law, student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.

Last changed 3 months ago · checked hourly

Bill Progress1 of 4
Bills must pass the House, Senate, and be signed by the President to become law.
Intro
House
Senate
Pres
IntroducedCurrentJan 15, 2025

Referred to the House Committee on the Judiciary.

Sponsors
See all 6 sponsors
House
Senate
President

The President

Joe Biden
46th President
Awaiting Vote
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