Student Loan Relief: Disability Discharge and Bankruptcy Eligibility
This act introduces significant changes for individuals with private education loans. If a borrower or co-signer becomes permanently disabled, the loan can be discharged. Additionally, the act makes it easier to discharge student loans in bankruptcy, potentially offering financial relief to many.
Key points
Private education loans can be discharged if the student borrower or co-signer experiences a permanent and total disability.
The discharged loan amount due to disability will not be considered taxable income or affect eligibility for other federal or state benefits.
Student loans are now dischargeable in bankruptcy proceedings, providing a path to financial relief.
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