The Department of Justice, in close coordination with the Department of Education, announced a new process for handling cases in which individuals seek to discharge their federal student loans in bankruptcy. The new process will help ensure consistent treatment of the discharge of federal student loans, reduce the burden on borrowers of pursuing such proceedings and make it easier to identify cases where discharge is appropriate. The Associate Attorney General outlined the new process to all U.S. Attorneys.
If you have student loans, I suggest you speak with a competent bankruptcy attorney in your area regarding having it discharged in bankruptcy, or entering into an income based repayment program whereby the balance after 20 years will be forgiven.
The above information is based on a press release from the US Department of Justice dated November 17, 2022.
