Student Loan Bankruptcy Act of 2018

Bill: 115-hr-6588
Sponsor: full_name: Rep. Correa, J. Luis [D-CA-46]
Introduced: 2018-07-26
Policy area: Finance and Financial Sector
Subjects: Bankruptcy

Higher education

Student aid and college costs
Latest action: action_date: 2018-07-26
text: Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

Summaries:
action_date: 2018-07-26
action_desc: Introduced in House
text: <p><b>Student Loan Bankruptcy Act of 2018</b></p> <p>This bill allows a student loan to be discharged in bankruptcy, without proving undue hardship, if the loan first became due more than five years before the bankruptcy filing. </p>

tv_txt: I 115th CONGRESS 2d Session H. R. 6588 IN THE HOUSE OF REPRESENTATIVES July 26, 2018 Mr. Correa introduced the following bill; which was referred to the Committee on the Judiciary A BILL To amend title 11 of the United States Code to modify the circumstances under current law to allow an individual debtor to discharge certain educational loans and educational benefits received by the debtor more than 5 years before the commencement of the bankruptcy case under such title.

1. Short title This Act may be cited as the Student Loan Bankruptcy Act of 2018 . 2. Amendment Section 523(a)(8) of title 11 of the United States Code is amended by inserting that first became due more than 5 years (exclusive of any applicable suspension of the repayment period) before the date of the filing of the petition, or after (8) . 3. Effective date; application of amendment (a) Effective date Except as provided in subsection (b), this Act and the amendment made by this Act shall take effect 1 year after the date of the enactment of this Act. (b) Application of amendment The amendment made by this Act shall not apply with respect to a debt for an educational benefit, overpayment, loan, scholarship, or stipend received by a debtor before the effective date of this Act.