Student Loan Bankruptcy Improvement Act of 2025
Sponsored By: Representative Correa, J. Luis [D-CA-46]
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, J. Luis [D-CA-46]
CA • D
Cosponsors
Adams
NC • D
Sponsored 7/16/2025
Rep. Balint, Becca [D-VT-At Large]
VT • D
Sponsored 7/16/2025
Rep. Carter, Troy A. [D-LA-2]
LA • D
Sponsored 7/16/2025
Rep. Fields, Cleo [D-LA-6]
LA • D
Sponsored 7/16/2025
Rep. Jayapal, Pramila [D-WA-7]
WA • D
Sponsored 7/16/2025
Johnson (GA)
GA • D
Sponsored 7/16/2025
Rep. Lee, Summer L. [D-PA-12]
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
Rep. Ross, Deborah K. [D-NC-2]
NC • D
Sponsored 7/16/2025
Swalwell
CA • D
Sponsored 7/16/2025
Rep. Tlaib, Rashida [D-MI-12]
MI • D
Sponsored 7/16/2025
Rep. Thanedar, Shri [D-MI-13]
MI • D
Sponsored 7/16/2025
Rep. Tonko, Paul [D-NY-20]
NY • D
Sponsored 7/16/2025
Rep. Velázquez, Nydia M. [D-NY-7]
NY • D
Sponsored 7/16/2025
Rep. Clarke, Yvette D. [D-NY-9]
NY • D
Sponsored 7/21/2025
Rep. García, Jesús G. "Chuy" [D-IL-4]
IL • D
Sponsored 8/8/2025
Rep. Krishnamoorthi, Raja [D-IL-8]
IL • D
Sponsored 8/15/2025
Thompson (MS)
MS • D
Sponsored 8/19/2025
Carson
IN • D
Sponsored 9/3/2025
Rep. Sánchez, Linda T. [D-CA-38]
CA • D
Sponsored 10/8/2025
Rep. Courtney, Joe [D-CT-2]
CT • D
Sponsored 12/23/2025
Rep. Evans, Dwight [D-PA-3]
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.gov