Bill · H.R. 4444· House(119-HR-4444)

Student Loan Bankruptcy Improvement Act of 2025

Age: 68 years

California

Introduced: 7/16/2025
Last activity: 7/16/2025 — Referred to the House Committee on the Judiciary.
Sponsored by: J. Correa
Cosponsors: - 24 - 0

Finance and Financial Sector

Introduced
In Committee

What this bill would do

The Student Loan Bankruptcy Improvement Act of 2025 aims to create a more equitable discharge standard for people with student loan debt. The bill proposes to amend the current bankruptcy code by striking the word "undue" from the existing "undue hardship" standard. By changing the standard to just "hardship," the legislation seeks to provide more flexibility for bankruptcy courts. This change is intended to help borrowers obtain relief from their debts more easily. The act applies to all bankruptcy cases commenced on or after the date it is enacted.

Yes· 3 of 11

Would students be better off under this?+8
The bill is specifically designed to benefit current and former student loan borrowers.
Does this reduce what student borrowers owe or repay?+8
The bill directly lowers the bar for obtaining student loan discharge in bankruptcy, providing significant relief to borrowers.
Would people in their twenties and thirties be better off under this?+7
Young adults are a major demographic of student loan borrowers who would benefit from easier debt discharge.