Bill > HR4444

This bill aims to make it easier for student loan borrowers to discharge their student loan debt through bankruptcy by removing the word "undue" from the current hardship standard. The bill provides extensive context about the challenges student loan borrowers face, noting that currently less than 0.1% of bankruptcy applications seeking student loan debt discharge are successful, largely due to an extremely strict "Brunner test" used by most bankruptcy courts. The proposed change would give bankruptcy courts more flexibility in determining hardship, while maintaining existing bankruptcy protections like means testing and disclosure requirements. The bill highlights that as of June 2025, approximately six million federal student loan borrowers are over 90 days past due, with the Department of Education estimating that up to 10 million borrowers could default in the near future. By removing the word "undue" from the hardship standard, the bill seeks to provide a more equitable path for borrowers to obtain relief, recognizing that many borrowers have student loans for degrees that did not improve their economic prospects. The amendment would apply to bankruptcy cases commenced before, on, and after the date of the act's enactment, ensuring broad applicability.

Justice

https://www.congress.gov/bill/119th-congress/house-bill/4444/all-info