Lets people discharge private student loans in bankruptcy without proving undue hardship.
This bill would make it easier for people to get rid of their private student loan debt if they file for bankruptcy. Currently, these loans are very hard to discharge. If this bill becomes law, private student loans would be treated more like other types of debt in bankruptcy.
Today, most private student loans and some other educational debts are very difficult to discharge in bankruptcy, requiring a high legal bar of "undue hardship." If this bill becomes law, private student loans would no longer be automatically non-dischargeable, making it easier for people to get relief from these debts through bankruptcy. Also, other educational debts would only be non-dischargeable if "substantially all" of the program's funding came from a government or non-profit, rather than "in whole or in part."
HR 423 · 119th Congress · January 15, 2025 · AI Summary by gemini-2.5-flash · 8/10
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