Discharge Of Student Loan Debt

How to Discharge Student Loan Debt: A Comprehensive Guide

Student loan debt is a pressing concern for many individuals. Understanding the complex laws and regulations surrounding the discharge of student loan debt can be a daunting task. This article aims to shed light on the topic, providing an in-depth analysis of the existing laws, proposed amendments, and the potential impact on borrowers.

Current Laws on Discharge of Student Loan Debt

The current law governing the discharge of student loan debt is the Bankruptcy Act. As it stands now, a debtor must wait for a period of ten years before they can approach the courts to have their student loans discharged. The court has the discretion to grant the discharge based on the debtor’s hardship.

Proposed Amendments to the Bankruptcy Act

There have been recent efforts to amend the Bankruptcy Act. The amended law, which has been passed but not yet put into effect, proposes a reduction of the waiting period from ten years to seven.

Senate Hearings and Recommendations

The Senate is currently conducting hearings to discuss potential further amendments. Several groups have recommended a period of less than seven years, although the Senate Committee’s recommendation remains unclear.

Impact of Political Climate

The timing and implementation of these amendments are subject to the political climate. The possibility of an election could derail the entire process, leaving the current ten-year requirement in place.

Partial Repayment of Student Loans

One of the proposed amendments not yet in effect would allow courts to order partial repayment of student loans. Currently, it’s an all-or-nothing situation; courts can either discharge the entire loan or not at all.

Seeking Information and Legal Advice

Borrowers seeking more information about discharging student loan debt and the potential impact of the amendments should consult with a financial advisor or legal professional.

Future of Student Loan Debt Discharge

The future of student loan debt discharge is uncertain. However, it is expected that the amended law will be in effect by the end of the calendar year. The exact date remains unknown.


The laws and regulations surrounding the discharge of student loan debt are complex and ever-changing. Borrowers should stay informed about the proposed amendments and seek professional advice to understand their potential impact.

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