Department of Education’s Newly Released Guidance on Student Loans and Bankruptcy

The Department of Education has released new guidance on how creditors may handle bankruptcy discharge requests for government-funded student loan debt. This guidance seeks to balance collecting student loan debts versus allowing the debts to be discharged. Through this guidance, the Department of Education advises guaranty agencies to be more careful when considering under what circumstances they will challenge borrowers in court who are claiming undue hardship in order to have his or her debt discharged.
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  • Newland & Newland LLP, Attorneys, Arlington Heights, IL