Student Loans are inching toward normalization with other dischargeable debt in Bankruptcy

The Student Borrower Bankruptcy Relief Act  has been initiated by the House  to eliminate the Bankruptcy Code’s ambiguous barrier to student loan discharge, which has been read to require a showing of severe financial hardship if the debtor is forced to re-pay.  This complements the judicial trend to discharge private student debt to effect the policy of pro rata sharing among creditors and provide a fresh start to debtors.