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Private Student Loan Bankruptcy Fairness Act of 2025
2/12/2025, 6:28 PM
Summary of Bill HR 423
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.
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.
Congressional Summary of HR 423
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.
Read the Full Bill
Current Status of Bill HR 423
Bill HR 423 is currently in the status of Bill Introduced since January 15, 2025. Bill HR 423 was introduced during Congress 119 and was introduced to the House on January 15, 2025. Bill HR 423's most recent activity was Referred to the House Committee on the Judiciary. as of January 15, 2025
Bipartisan Support of Bill HR 423
Total Number of Sponsors
3Democrat Sponsors
3Republican Sponsors
0Unaffiliated Sponsors
0Total Number of Cosponsors
4Democrat Cosponsors
4Republican Cosponsors
0Unaffiliated Cosponsors
0Policy Area and Potential Impact of Bill HR 423
Primary Policy Focus
Finance and Financial SectorAlternate Title(s) of Bill HR 423
To amend title 11 of the United States Code to modify the dischargeability of debts for certain educational payments and loans.
To amend title 11 of the United States Code to modify the dischargeability of debts for certain educational payments and loans.
Comments
Sponsors and Cosponsors of HR 423
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