What This Bill Does · Plain English
Summary · Congress.gov
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.
Action Timeline
2025-01-15
Referred to the House Committee on the Judiciary.
2025-01-15
Introduced in House
2025-01-15
Introduced in House
Frequently Asked Questions
Did HR.423 pass?
HR.423 is still alive. Current stage: COMMITTEE. Pass likelihood: 38%.
What does HR.423 do?
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.
Who sponsored HR.423?
HR.423 was sponsored by Steve Cohen (D-Tennessee).
Full Bill Text
119 HR 423 IH: Private Student Loan Bankruptcy Fairness Act of 2025 U.S. House of Representatives 2025-01-15 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain. I 119th CONGRESS 1st Session H. R. 423 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 A BILL To amend title 11 of the United States Code to modify the dischargeability of debts for certain educational payments and loans. 1. Short title This Act may be cited as the Private Student Loan Bankruptcy Fairness Act of 2025 . 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. 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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