Date: July 16th, 2025 6:46 AM
Author: Pope Leo XXX
of the USA:
The restrictions in one form or another on discharging student loans via bankruptcy go all the way back to 1976.
1976: Government-backed student loans became non-dischargeable for five years after entering repayment, unless the borrower could prove undue hardship.
1978: The Bankruptcy Reform Act of 1978 moved the exception for student loans into the U.S. Bankruptcy Code, solidifying this restriction.
1984: Restrictions on discharge were expanded to include private loans funded or guaranteed by a governmental unit or non-profit institution.
1990: The waiting period before a student loan could be potentially discharged was extended to seven years after repayment began.
1998: The Higher Education Amendments eliminated the waiting period altogether, making student loans (both federal and private) non-dischargeable unless the borrower could prove "undue hardship". This remains the primary hurdle for borrowers seeking to discharge their loans through bankruptcy.
2005: The Bankruptcy Abuse Prevention and Consumer Protection Act (BAPCPA) further tightened the rules, making most private student loans nondischargeable as well, regardless of whether they were guaranteed by a governmental entity or non-profit organization.
https://www.savingforcollege.com/article/history-of-student-loans-bankruptcy-discharge#:~:text=Until%201976%2C%20when%20a%20new,it%20in%20the%2021st%20century
(http://www.autoadmit.com/thread.php?thread_id=5750920&forum_id=2#49105087)