Biden Bankruptcy Shift Eases Path for Student Loan Discharges

The Biden administration has created new measures for facilitating destitute borrowers’ ability to discharge crippling federal student loan debt in bankruptcy, generating cautious optimism that much needed financial relief is now more accessible.

The departments of Justice and Education on Nov. 17 announced a new process for bankrupt individuals to discharge student loan debt, wherein the agencies will be newly positioned to help underwater borrowers obtain relief. The government said the move will cut down on “unnecessarily burdensome and time-consuming investigations.”

The move represents the most substantial shift by the federal government on the discharge issue in decades. It comes ...