Finance and Banking

The Student Borrower Bankruptcy Relief Act of 2024 proposes to:

·      Repeal Section 523(a)(8) of the Bankruptcy Code, which currently prevents the discharge of federal and private student loans absent a showing of “undue hardship.”

·      Eliminate the need for borrowers to prove “undue hardship” thorough costly proceedings in court, reducing the legal and financial burdens on borrowers already at their most perilous financial state.

·      Maintain existing bankruptcy means-testing, ensuring that only those who are already eligible for bankruptcy can access this relief.