What Do The New Student Loan Bankruptcy Guidelines Mean For Borrowers?

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Getting a discharge on your student loans in bankruptcy might be slightly easier due to new guidelines for borrowers.

According to Morgan, proving undue hardship has been difficult due to this high standard, but also due to the existence of income-driven repayment plans. Because these plans base a student's monthly payment on how much disposable income they have, and because payments for low-income borrowers can be as low as $0, proving undue hardship has long been considered an incredible chore.The U.S. Department of Justice issued new guidance regarding student loan bankruptcy in cooperation with the U.S.

We now know the updates to the attestation form ask borrowers to provide more details surrounding their financials and request for bankruptcy, as well as situations that may help prove undue hardship. For example, applicants can now include information on disabilities they have, including the presence of chronic conditions.

Since these changes are new and limited cases have been filed using the new policy at this time, we may learn more and gain a greater understanding of the changes as time goes by.

 

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What it means is pick a actual degree that can be use to make actual money once you graduate so you won’t have to cry like a baby and beg everyone else to pay your issues off.

It means they're not borrowers. Borrowers pay the loan back

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