We have seen the Department of Education take important steps to ensure that bankruptcy relief is available to federal student loan borrowers. The myth is not true because, in fact, student loans can be discharged bankruptcy. įor too long, a myth has persisted that student loans are not dischargeable in bankruptcy.
This protection is particularly important for consumers who have been burdened by decades-old student debt, many of whom may have been subject to predatory practices. The United States Bankruptcy Code provides important relief for debt-burdened consumers who need a fresh start to get their finances in order. Student Loan Borrowers Share Concerning Stories About Industry Collecting on Discharged Debt
