Student Debt Bankruptcy Success Rate Soars
Update: 2025-12-29
Description
Student Debt Discharge Rates Surge: New Study Shows 87% Success in Bankruptcy FilingsA recent study reveals a significant increase in the success rate of student loan discharge in bankruptcy cases, jumping from 40% in 2007 to 87% in recent cases. This shift is attributed to new guidelines introduced by the Biden administration in 2022, making it easier for borrowers to discharge their loans. The study analyzed 652 cases from late 2022 to late 2023, showing that women, particularly those with high debt balances, are more likely to file for bankruptcy. However, only a small fraction of borrowers attempt to discharge their student loans in bankruptcy, with many believing its impossible. With over 42 million Americans holding $1.6 trillion in student loans, this development could provide a much-needed lifeline for those struggling with debt. Checkout Solipillow.com
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