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Student Loan Bankruptcy Discharges Surge to 87% Amid Biden Reforms

12/27/2025

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Summary

Story summary

A new analysis finds the share of student loan bankruptcy discharges rose to 87%, up from 61% in 2017.
The increase is attributed to a Biden-era change that simplified the legal process and clarified guidelines for loan dismissals.
Previously, borrowers faced a costly, difficult process and had to prove their financial lives were 'hopeless'.
The study was conducted by Professor Jason Iuliano of the University of Utah.

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Story summary

A new analysis finds the share of student loan bankruptcy discharges rose to 87%, up from 61% in 2017.
The increase is attributed to a Biden-era change that simplified the legal process and clarified guidelines for loan dismissals.
Previously, borrowers faced a costly, difficult process and had to prove their financial lives were 'hopeless'.
The study was conducted by Professor Jason Iuliano of the University of Utah.