02/27/2024
Historically, about 1 in 1,000 student-loan discharges have been successful in bankruptcy court. Last year, the Justice Department released new guidance for federal lawyers meant to streamline the process and, theoretically, lead to more discharges. In November of 2023, the department said roughly 630 cases had been filed in 10 months using the new system, and that the “vast majority” of those borrowers received full or partial discharges. But whether a borrower can actually have their student loans discharged still depends on which federal lawyer is assigned to the case and in which jurisdiction their case is filed.
For years, erasing student loans through bankruptcy court has been a long, often unsuccessful process. Biden promised to make it easier, but has he?