Excerpt: “Each year, individuals in the bankruptcy process seek to discharge student loan debt in order to get the ‘fresh start’ envisioned by the bankruptcy code. Congress has set a higher bar for discharging student loan debt compared to other debt—debtors who seek to discharge student loans must prove in a separate ‘adversary proceeding’ that paying their student loans would impose an ‘undue hardship.’ But that higher bar need not be an insurmountable barrier for debtors who cannot afford to pay their student loans. The Department of Justice, in close coordination with the Department of Education, is implementing a new process at the outset of adversary proceedings in which debtors seek to discharge federal student loans in bankruptcy. While the bankruptcy judge makes the final decision whether to grant a discharge, the Justice Department can play an important role in that decision by supporting discharge in appropriate cases.”
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