Biden admin’s push to get student loans debt discharged
(CNN, KYMA/KECY) - The Biden administration is trying to make it easier for people to get their federal student loan debt discharged in bankruptcy.
New federal guidance released by the Department of Justice Thursday aims to do just that.
Discharging student loan debt in bankruptcy is particularly difficult under the previous policy.
Unlike credit card, medical and other consumer debts, student loan borrowers must show that paying off the debt would cause them "undue hardship."
Removing that legal requirement would require an act of congress.
The new guidance is meant to simplify the process of showing undue hardship and make it easier for government lawyers to recommend the debt be discharged.
