Student loans are easier than ever to get discharged in bankruptcy. You should still try these 5 alternatives first

The student loan delinquency rate has hit nearly 25% , according to a 2026 report by The Century Foundation. But borrowers looking to discharge their loans in bankruptcy may be in a better position than they realize. In 2022, the Departments of Justice (DOJ) and Education (DOE) streamlined the process for federal student loan discharges in bankruptcy proceedings, allowing borrowers to submit a written attestation of their financial status rather than undergo the usual lengthy legal process. The results have been dramatic. An analysis in the American Bankruptcy Law Journal (ABLJ) by University of Utah law professor Jason Iuliani found that, in 2023, borrowers who attempted to discharge their federal student loans in bankruptcy succeeded 87% of the time, up from 61% in 2017 and 39% in 2007. Bankruptcy should still be approached with great caution, however. It can be complicated, expensive and have a long-lasting impact on your financial future. Can student loans be discharged in bankruptcy? You can't file for bankruptcy just for student loans, but you can include federal or private student loans (or both) in a full bankruptcy petition, alongside credit card bills, medical expenses and other unsecured debts. Approval is by no means automatic: You must prove that repaying the loans would cause an "undue hardship," making it impossible for you to maintain even a minimal standard of living. …