Joe Biden Is Finally Moving Toward Allowing Bankruptcy to Eliminate Student Debt
The Department of Justice has announced it will stop opposing efforts to discharge student debt through bankruptcy — a victory for the advocacy groups who have continuously made this demand on the Biden administration.
President Joe Biden speaks about student debt relief at Central New Mexico Community College Student Resource Center in Albuquerque, New Mexico, on November 3, 2022. (Saul Loeb / AFP via Getty Images)
The Biden administration announced Thursday that it will change how it treats federal student loan borrowers seeking to discharge their debt through the federal bankruptcy process. Previously, the Department of Justice (DOJ) opposed any efforts by student loan borrowers to have their debt discharged through bankruptcy — which is already nearly impossible, even without opposition from government lawyers.
The move represents an about-face from the Biden administration. Up to this point, Biden’s DOJ actually moved to appeal the rare bankruptcy cases where student debtors were successful in discharging their debt. The Justice Department dropped those appeals after the Lever reported on the cases.
But now, following pressure from senators, the public, and news outlets like the Lever, the Justice Department has announced a new stance.
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