It's been nearly a year since President Joe Biden announced reforms to make it easier for student-loan borrowers to get rid of their debt in bankruptcy court. It's hard to say if those changes are working as intended.changing the way student-loan borrowers can attempt to discharge their loans through bankruptcy
But since those reforms were announced, it appears just a small number of borrowers have actually seen relief. Student Defense — an advocacy group that advocates for borrower protections — obtained data from the Education Department via the Freedom of Information Act that foundhave gotten a full or partial debt discharge since the November announcement.
Additionally, it's not certain that every borrower on the list the Education Department sent to Student Defense even had their debt discharged in connection to bankruptcy — some of them saw eventual relief through other programs like Public Service Loan Forgiveness, according to their court cases. "The guidance is still relatively new and it represents an important step forward and provides clearer, fairer, and more practical standards to guide recommendations for student debt discharges during bankruptcy proceedings," the spokesperson said."What is clear is that qualifying borrowers are using it and getting relief faster and with much less cost and burden than before, but the process still takes time and is largely driven by the legal system.