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Easier Student Loan Discharge in Bankruptcy and University Accountability.

This act makes it easier for students to discharge educational debts in bankruptcy by changing existing rules. Additionally, it introduces a mechanism where higher education institutions may be required to repay a portion of the discharged debt if their students struggle with loan repayment.
Key points
Bankruptcy rule changes: Easier discharge of certain student debts if repayment would cause undue hardship or if the first payment was due over 10 years ago.
University accountability: Educational institutions with high student loan default rates may be required to repay a portion of the discharged debt to the Department of Education.
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Expired
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Additional Information
Print number: 117_S_2598
Sponsor: Sen. Durbin, Richard J. [D-IL]
Process start date: 2021-08-04
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Summarized by: gemini-2.5-flash-preview-05-20
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

FRESH START Through Bankruptcy Act

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 117_S_2598.

Which chamber initiated this legislation?

This legislation was initiated in the Senate.

When did the legislative process begin?

The process officially started on 2021-08-04.

What are the main provisions?

Key points include:

  • Bankruptcy rule changes: Easier discharge of certain student debts if repayment would cause undue hardship or if the first payment was due over 10 years ago.
  • University accountability: Educational institutions with high student loan default rates may be required to repay a portion of the discharged debt to the Department of Education.
What is the specific legal status?

The current status is Expired.

Where can I read the full text of this legislation?

The full official text is available at: View full text

Who is the primary sponsor?

The primary sponsor is Sen. Durbin, Richard J. [D-IL].

What is the latest detailed status?

The latest detailed status is: Introduced in Senate

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-29.

CATEGORIES

Education Courts and Law