Official Summaries

Private Student Loan Bankruptcy Fairness Act of 2025

This bill modifies the treatment of certain student loans in bankruptcy.

Specifically, it allows private student loans to be discharged in bankruptcy regardless of whether a debtor demonstrates undue hardship. Under current law, student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.

Current Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 423 Introduced in House (IH)]

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119th CONGRESS
  1st Session
                                H. R. 423

       To amend title 11 of the United States Code to modify the 
 dischargeability of debts for certain educational payments and loans.


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                    IN THE HOUSE OF REPRESENTATIVES

                            January 15, 2025

Mr. Cohen (for himself, Mr. Davis of Illinois, Mr. Swalwell, Ms. Moore 
 of Wisconsin, and Ms. Brownley) introduced the following bill; which 
             was referred to the Committee on the Judiciary

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                                 A BILL


 
       To amend title 11 of the United States Code to modify the 
 dischargeability of debts for certain educational payments and loans.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Private Student Loan Bankruptcy 
Fairness Act of 2025''.

SEC. 2. EXCEPTIONS TO DISCHARGE.

    Section 523(a)(8) of title 11, United States Code, is amended--
            (1) by striking subparagraph (B); and
            (2) in subparagraph (A)--
                    (A) in clause (i)--
                            (i) by striking ``(i)''; and
                            (ii) by inserting ``any program for which 
                        substantially all of the funds are provided by 
                        a'' after ``unit or''; and
                    (B) in clause (ii)--
                            (i) by striking ``(ii)'' and inserting 
                        ``(B)''; and
                            (ii) by striking ``or'' at the end.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENTS.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendments made by this Act shall take effect on the date of 
the enactment of this Act.
    (b) Application of Amendments.--The amendments made by this Act 
shall apply only with respect to cases commenced under title 11 of the 
United States Code on or after the date of the enactment of this Act.
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