Bill > HR423

This bill, known as the "Private Student Loan Bankruptcy Fairness Act of 2025", proposes to modify the existing bankruptcy code (Title 11 of the United States Code) regarding the dischargeability of educational debts. Specifically, the bill aims to make it easier to discharge certain types of educational loans in bankruptcy proceedings. The bill would amend Section 523(a)(8), which currently restricts the discharge of student loan debt, by eliminating subparagraph (B) and modifying the language in subparagraph (A). The key changes include inserting a requirement that educational loans be substantially funded by a specific entity and restructuring the clause related to loan discharge. The amendments would only apply to bankruptcy cases commenced on or after the date of the Act's enactment, meaning existing bankruptcy cases would not be affected. By making these changes, the bill seeks to provide more flexibility for individuals seeking relief from educational loan debt through bankruptcy proceedings.

Justice

https://www.congress.gov/bill/119th-congress/house-bill/423/all-info