Student loans

Can student loans be discharged in bankruptcy?

Student loans are generally not discharged in bankruptcy unless repaying them would impose an undue hardship on you and your dependents. To ask for that, you file a separate lawsuit inside the bankruptcy case, called an adversary proceeding, and prove the hardship. For federal loans, a Justice Department process introduced in November 2022 uses an attestation form to decide whether the government will recommend a discharge. The bankruptcy judge makes the final decision.1 2

Start your student loan discharge journey

By Bankruptcy Route Editorial Team

Updated October 21, 20265 min read

Yes, but not automatically. You have to prove undue hardship in a separate lawsuit inside your bankruptcy case. Here is what that means, how the Justice Department reviews federal loan cases, and where to read more.

General information, not legal advice. Rules and amounts change; check with a lawyer or the court before you act.

In this guide

What is the rule for student loans in bankruptcy?

A bankruptcy discharge does not reach student loans on its own. They stay in place unless leaving them in place would impose an undue hardship on the debtor and the debtor's dependents.1

The rule covers nearly all federal student loans. It also covers private education loans that meet the tax-law definition of a qualified education loan.3

Hardship is not decided in the main bankruptcy case. You have to start an adversary proceeding, which is a lawsuit within the bankruptcy case that begins by filing a complaint with the court.2 4

So a person who files bankruptcy and takes no further step keeps the student loans. That is how the rule works. It does not mean a discharge is impossible.2

What does undue hardship mean?

Courts use more than one test. The Justice Department describes the Brunner test as the most common framework. Under it, the debtor must show all of the following.3

You cannot presently maintain a minimal standard of living if you are required to repay the loan.3
Your financial situation is likely to persist for a significant portion of the repayment period.3
You have made good faith efforts in the past to repay.3

Other courts use a totality of circumstances test instead. Which test your court uses is a question for a lawyer who practices there.3

Before the court, the debtor has the burden of proof on every element of the undue hardship claim.3

How does the Justice Department process work for federal loans?

In November 2022 the Justice Department and the Department of Education introduced a process for federal student loan cases. You complete an attestation form. Justice Department attorneys review it with the Department of Education and decide whether to recommend a full or partial discharge.2

The government attorneys look at three things, and the guidance applies under both court tests.2 3

What the government looks at under the Justice Department guidance
Question	How it is assessed
Can you pay now?2	The attorney uses IRS standards and the information you provide to calculate your expenses and compare them with your income. If expenses equal or exceed income, the Department concludes you cannot pay now.
Is that likely to continue?3	It is presumed in certain circumstances, including: you are age 65 or older; you have a disability or chronic injury that affects your income potential; you have been unemployed for at least five of the last ten years; you did not obtain the degree the loan was for; or the loan has been in payment status other than in-school for at least ten years.
Did you make good faith efforts to repay?3	Taking at least one listed step shows good faith unless other circumstances weigh against it. The steps include making a payment, applying for a deferment, forbearance or income-driven repayment plan, and responding to outreach from a servicer or collector.

Past non-payment, or not enrolling in an income-driven repayment plan, does not automatically disqualify a debtor.2

The guidance does not bind the bankruptcy court, which makes its own decision.3

The U.S. Trustee Program's student loan guidance page, updated March 17, 2026, still lists the 2022 guidance and an attestation form dated May 2025.5

What are the steps to ask for a discharge?

Start from an open bankruptcy case. The request is a lawsuit within or related to that case.4
File a complaint with the court to begin the adversary proceeding. This is the step that asks for a ruling on undue hardship.2 4
For federal loans, complete the attestation form so the government can assess the request. The local U.S. Attorney's Office for the district where the bankruptcy is pending handles these cases.2 5
The Justice Department reviews the form with the Department of Education and decides whether to recommend a full or partial discharge.2
The bankruptcy judge makes the final decision.2

An adversary proceeding is a lawsuit, so it goes beyond filling in the bankruptcy forms. The federal courts strongly recommend getting advice from a qualified attorney.4 6

The bankruptcy case itself carries court fees: $338 for Chapter 7 or $313 for Chapter 13 (effective December 1, 2023).7 8 9

What about private student loans?

The Justice Department process applies to adversary proceedings about federal student loans.2

For a private loan the question starts one step earlier: whether the loan is a kind the undue hardship rule covers. The Justice Department notes that the rule reaches private education loans that meet the tax-law definition of a qualified education loan. Whether a particular loan meets that definition depends on its facts, so it is a question for a lawyer.3

What does bankruptcy do about student loan collection in the meantime?

Filing a bankruptcy petition triggers the automatic stay, which stops most collection actions, including garnishments, while it is in effect.4

That is a pause, not a discharge. Most government-backed education loans are among the debts generally not wiped out in Chapter 7, and among the debts not discharged when a Chapter 13 plan is completed.10 9

Outside bankruptcy, federal repayment options changed under a law signed July 4, 2025, which created a new Repayment Assistance Plan. For current repayment plans and other federal relief programs, go to StudentAid.gov.11

Common questions

Is it true that student loans can never be discharged in bankruptcy?

No. They can be discharged if you prove, in a separate adversary proceeding, that repaying them would impose an undue hardship on you and your dependents.1 2

Will missed payments in the past count against me?

Under the Justice Department guidance, past non-payment does not automatically disqualify a debtor. Making a payment is one of the listed good faith steps, and so is applying for a deferment or forbearance.2 3

Can a court discharge only part of a student loan?

The Justice Department says that where the factors do not support a complete discharge, it will consider supporting a partial discharge where appropriate. The bankruptcy judge makes the final decision.2

Does the Justice Department process guarantee a discharge?

No. The guidance does not bind the bankruptcy court, and before the court the debtor still has the burden of proof on every element of the undue hardship claim.3

Who handles the case for the government?

The local U.S. Attorney's Office for the district where the bankruptcy is pending.5

Sources

Official courts & government references

Choose your next step

See what the discharge process asks of you and where you stand.