New Bankruptcy Guidelines Boost Student Loan Relief Success

Justice and Education Departments report significant increases in debt discharges following policy changes.

588 new bankruptcy cases filed between October 2023 and March 2024, a 36% increase from the previous period.
98% of borrowers in court cases received full or partial debt relief under the new guidelines.
The streamlined process includes a self-attestation form, making it easier for borrowers to prove undue hardship.
96% of borrowers voluntarily used the new process, indicating widespread acceptance.
Advocates call for broader awareness, noting the number of filings is still small compared to those eligible.