Private Student Loan Bankruptcy Fairness Act of 2023

Bill: 118-hr-138
Sponsor: full_name: Rep. Cohen, Steve [D-TN-9]
Introduced: 2023-01-09
Policy area: Finance and Financial Sector
Subjects: Bankruptcy

Higher education

Student aid and college costs
Latest action: action_date: 2023-01-09
text: Referred to the House Committee on the Judiciary.

Summaries:
action_date: 2023-01-09
action_desc: Introduced in House
text: <p><b>Private Student Loan Bankruptcy Fairness Act of 2023 </b></p> <p>This bill modifies the treatment of certain student loans in bankruptcy.</p> <p>Specifically, it allows&nbsp;private student loans to be discharged in bankruptcy&nbsp;regardless of whether&nbsp;a debtor&nbsp;demonstrates&nbsp;undue hardship.&nbsp;Under current law,&nbsp;student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.</p>

tv_txt: I 118th CONGRESS 1st Session H. R. 138 IN THE HOUSE OF REPRESENTATIVES January 9, 2023 Mr. Cohen (for himself, Mr. Davis of Illinois , Mr. Swalwell , Ms. Brownley , and Mr. Khanna ) 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 dischargeability of debts for certain educational payments and loans.

1. Short title This Act may be cited as the Private Student Loan Bankruptcy Fairness Act of 2023 . 2. Exceptions to discharge Section 523(a)(8) of title 11, United States Code, is amended— (1) by striking subparagraph (B); and (2) in subparagraph (A)— (A) in clause (i)— (i) by striking (i) ; and (ii) by inserting any program for which substantially all of the funds are provided by a after unit or ; and (B) in clause (ii)— (i) by striking (ii) and inserting (B) ; and (ii) by striking or at the end. 3. Effective date; application of amendments (a) Effective date Except as provided in subsection (b), this Act and the amendments made by this Act shall take effect on the date of the enactment of this Act. (b) Application of amendments The amendments made by this Act shall apply only with respect to cases commenced under title 11 of the United States Code on or after the date of the enactment of this Act.