Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2026
Sponsored By: Representative Thanedar, Shri [D-MI-13]
Introduced
Summary
Expands borrowers' access to undue-hardship discharge for federal student loans. This bill would amend Section 523(d) of the Bankruptcy Code so a debtor can ask a court to determine if student loan debt is dischargeable for undue hardship under 11 U.S.C. § 523(a)(8).
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- Student-loan borrowers could ask a bankruptcy court to decide whether their loans qualify for discharge based on undue hardship, using the amended Section 523(d).
- The change applies only to bankruptcy cases filed after enactment, so it would not affect cases already underway.
- Loan collectors and servicers could see more formal dischargeability requests in new bankruptcy filings because the bill clarifies the route for undue-hardship claims.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 1 benefits, 0 costs, 0 mixed.
More bankruptcy relief for student borrowers
If enacted, you would be able to ask a bankruptcy court to decide that your student loan debt is dischargeable because it causes undue hardship. This would let debtors request discharge under the existing undue-hardship framework in 11 U.S.C. §523(a)(8). The change would take effect on the date of enactment and would apply only to bankruptcy cases started under Title 11 on or after that date. If a judge agrees, your student loan balance could be reduced or wiped out.
Sponsors & CoSponsors
Sponsor
Thanedar, Shri [D-MI-13]
MI • D
Cosponsors
There are no cosponsors for this bill.
Roll Call Votes
No roll call votes available for this bill.
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