Private Student Loan Bankruptcy Fairness Act of 2025

2/12/2025, 6:28 PM

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.

Bill 119 HR 423, also known as the "Student Loan Debt Relief Act," aims to make changes to the dischargeability of debts related to certain educational payments and loans under title 11 of the United States Code.

The bill proposes to allow individuals with student loan debt to discharge these debts in bankruptcy proceedings, which is currently not allowed under the current laws. This would provide relief to individuals who are struggling to repay their student loans and facing financial hardship.

The bill also includes provisions to modify the criteria for determining whether a debt related to educational payments or loans can be discharged in bankruptcy. This would make it easier for individuals to qualify for debt relief and alleviate the burden of student loan debt. Overall, the Student Loan Debt Relief Act aims to provide much-needed assistance to individuals facing overwhelming student loan debt by allowing for the discharge of these debts in bankruptcy proceedings. This could potentially help alleviate financial stress and provide a fresh start for those struggling with student loan repayment.
Congress
119
Number
HR - 423
Introduced on
2025-01-15
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

1/15/2025
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and 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.

Bill 119 HR 423, also known as the "Student Loan Debt Relief Act," aims to make changes to the dischargeability of debts related to certain educational payments and loans under title 11 of the United States Code.

The bill proposes to allow individuals with student loan debt to discharge these debts in bankruptcy proceedings, which is currently not allowed under the current laws. This would provide relief to individuals who are struggling to repay their student loans and facing financial hardship.

The bill also includes provisions to modify the criteria for determining whether a debt related to educational payments or loans can be discharged in bankruptcy. This would make it easier for individuals to qualify for debt relief and alleviate the burden of student loan debt. Overall, the Student Loan Debt Relief Act aims to provide much-needed assistance to individuals facing overwhelming student loan debt by allowing for the discharge of these debts in bankruptcy proceedings. This could potentially help alleviate financial stress and provide a fresh start for those struggling with student loan repayment.
Alternative Names
Official Title as IntroducedTo amend title 11 of the United States Code to modify the dischargeability of debts for certain educational payments and loans.
Policy Areas
Finance and Financial Sector

Comments

Related

Committee:  
Judiciary
Member:  
Danny K. Davis
Member:  
Steve Cohen
Member:  
Gwen Moore
Member:  
Julia Brownley
Member:  
Eric Swalwell

Recent Activity

Latest Summary3/28/2025

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 rega...

Latest Action1/15/2025
Referred to the House Committee on the Judiciary.