through that process because they had to prove the"undue hardship" standard, in which borrowers have to show that they cannot maintain a minimal standard of living, that their circumstances aren't likely to improve, and that they have made a good-faith effort to repay their debt.
But it's been eight months since those reforms were announced, and Warren asked Attorney General Merrick Garland for a status update on implementation — especially with"the looming threat of restarting student loan payments"Warren wrote in a letter sent on Wednesday that the undue hardship standard"has been narrowly interpreted by courts, and has proven to be so difficult to meet that most borrowers do not even attempt to discharge their student loans through the bankruptcy...
Warren requested that by August 9, Garland provide information including how many borrowers have filed for bankruptcy discharge since the guidance was announced in November, how the Justice Department has informed attorneys about the new guidance, and the percentage of borrowers who filed for bankruptcy who actually had their loans discharged.