Student Loan Bankruptcy

Benzinga

Student loan borrowers have seen sharply higher success discharging education debt in bankruptcy, with approval rates reaching 87% after updated federal guidelines took effect.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:03Student loan borrowers have seen higher success in discharging education debt in bankruptcy

00:07in recent years, according to CNBC. An analysis published this month found the success rate

00:14reached 87% for borrowers who sought discharge between October 2022 and November 2023. The rate

00:22was 61% in 2017 and 40% in 2007. The study reviewed 652 bankruptcy cases that included student

00:32loans. Improved bankruptcy outcomes for student loan borrowers followed updated guidelines issued

00:37by the Biden administration in November 2022. The guidance remains in place under the Trump

00:43administration, and the Education Department did not respond to CNBC's request for comment.

00:48More than 42 million Americans hold student loans totaling over $1.6 trillion.

00:54For all things money, visit Benzinga.com.

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