Student Loan Bankruptcy Improvement Act of 2025
Sponsored By: Representative Correa
Introduced
Summary
Easier bankruptcy discharge for federal student loans. This bill would loosen the "undue hardship" test so bankruptcy courts can use more flexible, reasonable criteria to discharge student loan debt.
Show full summary
- Borrowers and families: Makes discharge more attainable for people behind on payments. About 6 million borrowers are 90+ days delinquent and as many as 10 million could enter default soon.
- Credit and finances: Aims to stop further credit damage for millions whose scores fall because of loan troubles. Current discharge attempts succeed at under 0.1 percent, so the change targets a very low success rate.
- Courts and creditors: Gives judges room to apply fairer standards while preserving means testing, disclosure, and exemption limits to protect creditors and guard against abuse.
Your PRIA Score
Personalized for You
How does this bill affect your finances?
Sign up for a PRIA Policy Scan to see your personalized alignment score for this bill and every other piece of legislation we track. We analyze your financial profile against policy provisions to show you exactly what matters to your wallet.
Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
Easier bankruptcy relief for student loans
If enacted, this bill would lower the legal test to wipe out student loan debt in bankruptcy. It would change the rule from "undue hardship" to "hardship." Courts could discharge qualifying loans more often, but discharge would still not be automatic. The change would apply to bankruptcy cases started before, on, or after the law takes effect.
Sponsors & CoSponsors
Sponsor
Correa
CA • D
Cosponsors
Adams
NC • D
Sponsored 7/16/2025
Balint
VT • D
Sponsored 7/16/2025
Carter (LA)
LA • D
Sponsored 7/16/2025
Fields
LA • D
Sponsored 7/16/2025
Jayapal
WA • D
Sponsored 7/16/2025
Johnson (GA)
GA • D
Sponsored 7/16/2025
Lee (PA)
PA • D
Sponsored 7/16/2025
Lofgren
CA • D
Sponsored 7/16/2025
Del. Norton, Eleanor Holmes [D-DC-At Large]
DC • D
Sponsored 7/16/2025
Ross
NC • D
Sponsored 7/16/2025
Swalwell
CA • D
Sponsored 7/16/2025
Tlaib
MI • D
Sponsored 7/16/2025
Thanedar
MI • D
Sponsored 7/16/2025
Tonko
NY • D
Sponsored 7/16/2025
Velazquez
NY • D
Sponsored 7/16/2025
Clarke (NY)
NY • D
Sponsored 7/21/2025
Garcia (IL)
IL • D
Sponsored 8/8/2025
Krishnamoorthi
IL • D
Sponsored 8/15/2025
Thompson (MS)
MS • D
Sponsored 8/19/2025
Carson
IN • D
Sponsored 9/3/2025
Sanchez
CA • D
Sponsored 10/8/2025
Courtney
CT • D
Sponsored 12/23/2025
Evans (PA)
PA • D
Sponsored 1/16/2026
Bonamici
OR • D
Sponsored 2/4/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.govTake It Personal
Get Your Personalized Policy View
Start a Free Government Policy Watch to see how policy affects your household, then upgrade to PRIA Full Coverage for year-round monitoring.
Already have an account? Sign in