🎓 Bankruptcy
Can You Discharge Student Loans in Bankruptcy? Undue Hardship Explained
Short answer: Student loans are not automatically erased in bankruptcy. You generally must file a separate lawsuit inside your bankruptcy case, called an adversary proceeding, and show that repayment would cause an undue hardship. For federal loans held by the Department of Education, the Department of Justice uses an attestation form to help decide whether to support a discharge. A bankruptcy attorney can explain your odds.
The basic rule
Most unsecured debts can be wiped out in bankruptcy, but education loans are treated differently. A borrower seeking discharge must prove undue hardship in an adversary proceeding. Courts often use the three-part Brunner test: present inability to pay, a likelihood that the hardship will continue, and good-faith efforts to repay. The judge makes the final decision. Bankruptcy is a serious step with credit and legal consequences, so get professional advice.
Federal loans: the DOJ attestation process
In 2022 the Department of Justice and the Department of Education set up a process for federal loans the Department of Education holds. After you file the adversary proceeding, you complete an attestation form about your income, expenses and efforts to repay. DOJ reviews it with the Department of Education and decides whether to recommend discharge. The court still decides. The government explains the process in its At a Glance overview.
This process generally covers Direct Loans and FFEL or Perkins loans the Department of Education holds. It does not apply the same way to loans held by private lenders.
Private loans
Some private loans can be discharged like ordinary debt if they do not meet the legal definition of a protected education loan. Others require proving undue hardship through the full adversary process. Ask a bankruptcy attorney to review your loan documents. See federal vs private student loans.
Options to look at first
- An income-driven plan can reduce payments. See 2026 repayment plans and how to apply for RAP.
- A disability discharge may apply. See TPD discharge.
- If you are in default, there are recovery paths. See default help and wage garnishment status.
- Other cancellation programs are in forgiveness eligibility.
What the process looks like
- Consult a bankruptcy attorney or legal aid office about whether bankruptcy fits your situation.
- File your bankruptcy case and the adversary proceeding listing your student loans.
- For eligible federal loans, complete the attestation form with accurate financial details.
- Respond to DOJ and court deadlines.
- Await the court’s decision. Outcomes vary.
Hypothetical example: A borrower with very low, stable income and serious ongoing expenses completes the attestation and DOJ supports discharge. A borrower with growing income may not meet the standard. Results depend on the facts and the court.
Beware of promises
No one can guarantee a discharge. Be cautious about anyone who charges large upfront fees or promises results. See scam warning signs.
Rules change. This guide was reviewed on October 22, 2026 against official sources. Federal student-loan programs, deadlines and court-driven changes can shift quickly, so confirm current details at StudentAid.gov before you act.
Frequently asked questions
Official sources and references
Related guides
Request Student Loan Assistance Information
Tell us a little about your student loans so we can understand your request and contact you about potentially relevant information. Eligibility and outcomes are not guaranteed.