[20070726]RS22699_破产学生贷款.pdf

1 This report was prepared under the general supervision of Robin Jeweler, Legislative Attorney.2 11 U.S.C. 523(a)(8)(2005).Order Code RS22699July 26, 2007Student Loans in BankruptcyDuke ChenLaw ClerkAmerican Law DivisionSummaryCurrently, student loans cannot be discharged when the debtor declares bankruptcy,which means that, unlike most other unsecured debt, student loans will stay with thedebtor post-bankruptcy. There are two bills pending before the 110th Congress thatwould amend the U.S. Bankruptcy Code to restore limited dischargeability for studentloans, consistent with the law at various points in its prior history.If enacted, S. 511 would make both public and private loans dischargeable inbankruptcy when seven years have passed from the beginning of the repayment period.Another bill, S. 1561, would eliminate privately financed student loans from those thatare nondischargeable in bankruptcy. The purpose of the bill would be to restore the lawto its status before the passage of the Bankruptcy Abuse Prevention and ConsumerProtection Act (BAPCPA) in 2005. This report examines the history of student loan nondischargeability in bankruptcylaw and the bills introduced to amend trea