Education Dept. Eyes Changes in Bankrupt Borrowers' Ability to Discharge Loans

efore 1998, student-loan borrowers were able to have their federal loans forgiven by declaring bankruptcy after the seventh year of repayment. But legislation enacted that year removed that provision, making it difficult to discharge loans except in extreme cases.

Now the Education Department is signaling that it wants to take a closer look at streamlining the forgiveness process for borrowers.

The department announced on Tuesday that it would seek public comment on how to determine whether borrowers have met the high standard — “undue hardship” — required to have their loans forgiven.

Read more at The Chronicle of Higher Education: