Student Loan Discharge In Bankruptcy

Student Loan Discharge In Bankruptcy

Most student loans are excepted from the general bankruptcy discharge. To receive a discharge of both federal and some private student loans, a bankruptcy debtor is required to file a complaint against the Department of Education, seeking a determination from the judge that the loans are discharged based on undue hardship. This is a very steep hill to climb. In fact, most lawyers won’t even recommend this be attempted, due to the cost of litigation.

In the past, most attempts to seek a discharge of federal student loans were met by fierce objection from the Department of Education through the United States Department of Justice as standard policy and procedure. However, on November 17, 2022, the Department of Justice and Department of Education released new guidance for the government’s lawyers when handling requests to discharge federal student loans in bankruptcy. Lawyers in this arena are still analyzing the details of this guidance, and this is a hopeful development for the discharge of student loans. It is important to note, these guidelines only provide relief for federal student loan borrowers.

If you would like to have a review of your federal student loans for possible bankruptcy discharge, please contact us at 517-321-6804 to schedule a case evaluation.


Bankruptcy Attorney Grand Ledge MIAttorney Kristen L. Krol

Kristen L. Krol has experience in consumer bankruptcy, civil litigation, real estate, divorce, criminal defense, and child protection. She assumed control of DRLC on January 1, 2012, and focuses her practice not only on consumer bankruptcy, but also has added consumer protection and student loan resolution.

She is a member of the National Association of Consumer Bankruptcy Attorneys, National Association of Consumer Advocates, Federal Bar Association, State Bar of Michigan, Debtors Bar of West Michigan, and Clinton, Eaton and Ingham County Bar Associations. She also serves on the Council of the Consumer Law Section and Representative Assembly of the State Bar.


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