Reps. Nadler and Correa Reintroduce the “Student Borrower Bankruptcy Relief Act”
As the Department of Education’s repayment “on ramp” expired yesterday, House Judiciary Committee Ranking Member Jerrold Nadler (D-N.Y.) and Subcommittee on Administrative Law, Regulatory Reform, and Antitrust Ranking Member Lou Correa reintroduced the “Student Borrower Bankruptcy Relief Act of 2024,” aiming to repeal Section 523(a)(8), which makes private and federal student loans nondischargeable, allowing these loans to be treated like nearly all other forms of consumer debt. The legislation also proposes to maintain existing bankruptcy means-testing, ensuring that only those who are already eligible for bankruptcy can access this relief. This also ensures that the fresh start provided by the legislation is available only to those demonstrably in need, without disturbing bankruptcy eligibility criteria beyond current standards. The legislation has been introduced in previous sessions of Congress, but was not voted into law.
