The idea that student loans can never be discharged in bankruptcy is a persistent myth. Federal law allows discharge, but the mechanism is widely misunderstood.
In November 2022, the Department of Justice and the Department of Education issued joint guidance establishing a standardized process. Borrowers seek relief under 11 U.S.C. 523(a)(8) by demonstrating undue hardship through a specific attestation framework.
Discharge is not an automatic box checked on an initial bankruptcy filing. It requires filing an adversary proceeding within the bankruptcy case to evaluate income, expenses, and repayment history.
Understanding the actual legal procedure turns a vague assumption into an actionable legal strategy.
What year did you take out your first student loan?
