A majority of Americans looking for discharge have received full or partial discharges, according to the Department of Justice.
Three years after a nationwide pause on student loan payments amidst the COVID-19 pandemic, Americans are taking advantage of legal changes made by the Biden Administration to make discharging student loans in bankruptcy easier.
Americans filing for bankruptcy to discharge student loan debt should meet three criteria, according to Fox Business. They include: proving that a good-faith effort to repay debt was made, demonstrating an inability to repay loans in the present, and not being able to foresee repaying loan amounts in the future, the news outlet reported.
Associate Attorney General Vanita Gupta thinks the new policy has been a success thus far. Gupta said, according to Fox Business, that after a year-long review of the results, the new benchmarks have “made a real difference in borrowers’ lives by ensuring student-loan discharges are more accessible to eligible borrowers.”
Chief Operating Officer Rich Cordray of the Department of Education’s Office of Federal Student Aid agreed. He said, according to the DOJ’s news release, “It is clear that this improved process is helping struggling borrowers.”
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Source: Black Enterprise