Sec. 3. Making student loan debts dischargeable in bankruptcy
224 words·~1 min read·
/bill/117/s/4912/is/section-3A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Section 523(a) of title 11, United States Code, is amended by striking paragraph
(8)and inserting the following: for an educational benefit overpayment or loan made, insured, or guaranteed by a governmental unit, or made under any program funded in whole or in part by a governmental unit or nonprofit institution, or for an obligation to repay funds received as an educational benefit, scholarship, or stipend received from a governmental unit or nonprofit institution, unless— excepting such debt from discharge under this paragraph would impose an undue hardship on the debtor and the debtor’s dependents; in the case of such an education benefit overpayment or loan for undergraduate education, the first payment on such debt became due before the 5-year period (exclusive of any applicable suspension of the repayment period) ending on the date of the filing of the petition; or in the case of such an education benefit overpayment or loan for graduate education, the first payment on such debt became due before the 15-year period (exclusive of any applicable suspension of the repayment period) ending on the date of the filing of the petition; . The amendment made by subsection
(a)shall apply to any proceeding under title 11, United States Code, that is initiated on or after the date that is 180 days after the date of enactment of this Act.