Your chances of getting rid of student loan debt depend on who you are
To get rid of student loan debt through bankruptcy, you must prove to the court that paying back your student loans would cause an “undue hardship.” But in our peer-reviewed study of nearly 700 student loan discharge cases spanning 1985 to 2020, we found that judges’ decisions to dismiss student loans are often influenced by personal factors, such as your gender.
To determine whether repaying the student loan debt is causing the debtor to experience an undue hardship, most courts apply three criteria outlined in a case known as “Brunner.”
Under Brunner, to prove they are experiencing an undue hardship, debtors must first demonstrate that repaying their student loans would not allow them to maintain a minimal standard of living. In other words, repaying the debt would prevent them from meeting their basic needs, including food, clothing and shelter. Second, debtors must show that additional circumstances exist that indicate their finances are unlikely to improve. These additional circumstances could include having a medical condition or caring for dependents. Third, debtors must show that they have made good-faith efforts to repay their loans. This includes efforts to make payments on the loans or attempts to consolidate their debt.