Can You File Bankruptcy on Student Loans? (2026 Guide)

Student loans can be discharged in bankruptcy. The process depends on whether the debt is a federal loan, a private loan, or both — and the path to discharge looks different for each.

Federal student loans held by the Department of Education go through a DOJ attestation process that evaluates the borrower’s financial situation against specific criteria. Private student loans follow one of two routes: some can be eliminated like any other consumer debt because they don’t meet the legal definition of a protected education loan, while others require proving undue hardship through an adversary proceeding.

The landscape shifted in November 2022 when the Department of Justice introduced guidance that standardized how federal student loan discharge cases are evaluated. Outcomes vary significantly by jurisdiction, and the borrowers getting discharges tend to share certain financial characteristics.

The Department of Justice uses an attestation process to evaluate whether a borrower qualifies for discharge of federal student loans held by the Department of Education. The borrower files an adversary proceeding in bankruptcy court, then submits an attestation form and supporting financial documents to the DOJ. Government attorneys review the submission against criteria drawn from the Brunner and totality-of-circumstances tests, applying rebuttable presumptions when the borrower is 65 or older, has a disability affecting earning capacity, has been unemployed for five or more of the past ten years, failed to obtain the degree the loan funded, or has been in repayment for 25 or more years.

From November 2022 through March 2024, 1,220 cases were filed under this process, with 98 percent of decided cases resulting in full or partial discharge. The successful filers tend to be older borrowers — often 55 and above — who have carried their loans for a decade or more and earned less than $60,000 annually over their working lives. Results vary by geography. Some jurisdictions, like Minnesota, have processed over a hundred cases, while others have granted few or none.

The attestation process applies only to Department of Education-held federal loans. It does not cover commercially held FFEL loans or private student loans. And while the process has made it easier to initiate a discharge case, the outcome still depends on the jurisdiction, the assigned Assistant U.S. Attorney, and whether the borrower’s attorney is prepared to litigate if the government doesn’t recommend discharge. The attestation lowered the barrier to filing, but it didn’t eliminate the need for counsel who can take the case to trial.

For a detailed breakdown of how the attestation process works, what documents you’ll need, and how the DOJ evaluates each factor, read the full guide to the DOJ attestation process.

Private student loans follow two distinct paths in bankruptcy, and the difference comes down to whether the loan meets the legal definition of a “qualified education loan” under the Internal Revenue Code. Loans that meet this definition are protected by the same undue hardship standard that applies to federal loans. Loans that don’t meet the definition can be discharged like any other unsecured consumer debt — no adversary proceeding, no undue hardship showing required.

A private loan falls outside the protected category when it wasn’t used to pay qualified higher education expenses at an eligible institution during a period of enrollment. That includes loans where the amount exceeded the cost of attendance, loans for schools that weren’t accredited or eligible for Title IV funding, loans for bar exam preparation or medical residency expenses, and loans to students enrolled less than half-time. The Consumer Financial Protection Bureau has documented cases where servicers continued collecting on these loans even after they were discharged — collecting on debt the borrower no longer owed.

The non-qualified loan path applies to a specific set of circumstances — particularly loans from certain lenders that operated between 2006 and 2010, when underwriting was looser and loans were being made directly to borrowers alongside their federal aid. For most private loans that were used to cover tuition and fees at accredited schools, the borrower still needs to prove undue hardship through an adversary proceeding.

Read the full guide to private student loan discharge for details on how courts evaluate these cases and what evidence matters.

Whether the court applies the Brunner test or the totality-of-circumstances test, the borrower must demonstrate that repaying the loan would impose an undue hardship. This standard applies to federal loans and to private loans that qualify as protected education debt under Section 523(a)(8) of the Bankruptcy Code.

The Brunner test requires showing three things: that the borrower cannot maintain a minimal standard of living while repaying the loans, that the financial hardship is likely to persist for a significant portion of the repayment period, and that the borrower has made good-faith efforts to repay. The totality-of-circumstances test, used in the Eighth Circuit and parts of the First Circuit, evaluates the borrower’s past, present, and reasonably reliable future financial resources alongside necessary living expenses and any other relevant facts.

The practical reality of meeting this standard depends heavily on geography and the quality of legal representation. Borrowers in jurisdictions with established case law and experienced practitioners have materially different odds than borrowers in districts where few cases have been filed.

Discharging student loans in bankruptcy requires filing an adversary proceeding — a lawsuit within the bankruptcy case — to determine whether the debt is dischargeable. The borrower files a complaint, and the case proceeds through discovery, potential settlement negotiations, and possibly trial.

For federal loans, the adversary proceeding initiates the DOJ attestation review. For private loans requiring an undue hardship showing, the adversary proceeding is where the borrower presents evidence and the court makes a determination.

The full process, including what to expect at each stage and how long it takes, is covered in the adversary proceeding guide.

Both Chapter 7 and Chapter 13 bankruptcy allow borrowers to pursue student loan discharge, but the mechanics differ.

In Chapter 7, the borrower files an adversary proceeding during the bankruptcy case. If the court finds undue hardship (or the DOJ attestation process results in a recommendation for discharge), the loans are eliminated. Chapter 7 cases typically conclude within a few months, though the adversary proceeding may extend beyond that timeline.

In Chapter 13, the borrower enters a three-to-five-year repayment plan. Student loans can be included in the plan, and the borrower can file an adversary proceeding to seek discharge of the remaining balance. Some borrowers use Chapter 13 strategically — making reduced payments on student loans through the plan while pursuing discharge of the remaining balance. Chapter 13 also provides protections that Chapter 7 does not, including the ability to cure mortgage arrears and protect non-exempt assets.

The choice between chapters depends on the borrower’s overall financial picture, not just the student loan debt. A detailed comparison is available in the Chapter 13 student loan bankruptcy guide. Borrowers already in Chapter 13 who need to take out new student loans can learn about that process in the guide to getting student loans during Chapter 13.

Student loans as the only debt. A borrower can file bankruptcy even when student loans are the only significant obligation. But when the loans are federal, the availability of income-driven repayment complicates the undue hardship analysis. Courts in certain jurisdictions reason that if the borrower has access to an affordable monthly payment through an income-driven plan, the hardship may not be “undue.” The counterargument is that income-driven repayment addresses monthly cash flow but doesn’t resolve the underlying debt — and it doesn’t account for medical costs, caregiving responsibilities, or other circumstances that fall outside the repayment calculation. The outcome depends on the jurisdiction, the specific facts, and the judge.

Cosigners. Filing bankruptcy on a student loan does not automatically release the cosigner from the obligation. If the borrower receives a discharge, the lender can still pursue the cosigner for the full balance. Chapter 13 offers an automatic stay that temporarily protects cosigners during the repayment plan, but that protection ends when the plan concludes. Read the cosigner bankruptcy guide for strategies to protect cosigners.

Parent PLUS loans. Parent PLUS loans can be discharged through the same adversary proceeding and undue hardship framework that applies to other federal loans. The DOJ attestation process covers Parent PLUS loans held by the Department of Education. The parent borrower — not the student — is the one who must file and demonstrate hardship.

Sallie Mae and Navient loans. Whether a Sallie Mae or Navient loan can be discharged depends on the loan type. FFEL loans originated by Sallie Mae that are now held by guaranty agencies or commercial lenders follow the undue hardship path but aren’t covered by the DOJ attestation process. Navient private loans may or may not qualify as protected education debt depending on when and how they were originated.