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Easier Student Loan Discharge in Bankruptcy

This new act aims to make it easier for students to discharge their loans in bankruptcy by removing the difficult "undue hardship" requirement. It seeks to help millions of indebted individuals achieve a financial "fresh start" and better participate in the economy, without concerns of system abuse.
Key points
Simplifies student loan discharge in bankruptcy by eliminating the "undue hardship" standard.
Increases opportunities for a financial "fresh start" for student loan borrowers, potentially improving their credit and overall life situation.
The changes apply to bankruptcy cases commenced before, on, and after the act's enactment date.
article Official text account_balance Process page
Introduced
Citizen Poll
No votes cast
Additional Information
Print number: 119_HR_4444
Sponsor: Rep. Correa, J. Luis [D-CA-46]
Process start date: 2025-07-16
Lustra uses Artificial Intelligence. Verify details in source documents.
Summarized by: gemini-2.5-flash
Source data: api.congress.gov
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OFFICIAL LEGAL TITLE

Student Loan Bankruptcy Improvement Act of 2025

FREQUENTLY ASKED QUESTIONS

What is the official ID of this bill?

The official print number for this legislation is 119_HR_4444.

Which chamber initiated this legislation?

This legislation was initiated in the House of Representatives.

When did the legislative process begin?

The process officially started on 2025-07-16.

What are the main provisions?

Key points include:

  • Simplifies student loan discharge in bankruptcy by eliminating the "undue hardship" standard.
  • Increases opportunities for a financial "fresh start" for student loan borrowers, potentially improving their credit and overall life situation.
  • The changes apply to bankruptcy cases commenced before, on, and after the act's enactment date.
What is the specific legal status?

The current status is Introduced.

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 Rep. Correa, J. Luis [D-CA-46].

What is the latest detailed status?

The latest detailed status is: Referred to the House Committee on the Judiciary.

Is this summary verified?

Yes. This content was analyzed by AI and verified by the Lustra Judge System on 2025-12-23.

CATEGORIES

Education Courts and Law Economy