NACBA Applauds Introduction of H.R. 4444: The Student Loan Bankruptcy Improvement Act of 2025

https://nacba.org/news/706197/NACBA-Applauds-Introduction-of-H.R.-4444-The-Student-Loan-Bankruptcy-Improvement-Act-of-2025.htm

For decades, the ‘undue hardship’ standard, particularly as interpreted through the outdated Brunner test, has made it virtually impossible for borrowers to discharge student loans in bankruptcy. Enacted in an era when student loan debt averaged around $5,200 (adjusted to $14,000 in today’s dollars), the Brunner standard has not kept pace with economic realities. In contrast, today’s borrowers carry an average of over $37,000 in student loan debt.