The Biden administration this week released highly-anticipated data on a new initiative that makes it easier for borrowers experiencing hardships to discharge their student loans in bankruptcy.
The Education Department and the Department of Justice rolled out experimental guidance last fall to encourage cooperation between the government and student loan borrowers seeking bankruptcy relief. After a year, the program is showing clear signs of success.
“One year ago, we set out to simplify and improve the process for student loan borrowers in bankruptcy,” said Associate Attorney General Vanita Gupta in a statement on Thursday. “I am thrilled that our one-year review indicates that our efforts have made a real difference in borrowers’ lives by ensuring student-loan discharges are more accessible to eligible borrowers. We will continue working with our partners at the