In an effort to stem perceived abuses of the bankruptcy system, Congress adopted a rule in 1976 that created a time …-based conditional limitation on the discharge of federally guaranteed student loans in bankruptcy. The only means of overcoming the … created, means-based tests that were used to determine if the debtor was attempting to abuse the bankruptcy system. By the …

Since 1976, Congress has progressively amended the bankruptcy laws to treat some types of student loans differently … from other unsecured debt. In 2005, student loans originated by private companies — loans granted only to credit … in bankruptcy. Proponents of this change argued that it was necessary to prevent strategic borrower behavior and reduce …

anonymized credit bureau files, we examine the bankruptcy filing and delinquency rates of private student loan borrowers in …Bankruptcy reform in 2005 eliminated debtors' ability to discharge private student loan debt in bankruptcy. This law … bankruptcy even if they had sufficient income to service their debt. Using a unique, nationally representative sample of …

from the previous quarter. Of this amount, $53 billion (65%) was student loan debt. In contrast, auto loans and credit card … debt accounted for only $29 billion. Student loan debt is also a rapidly increasing element in consumer bankruptcy. This … study examines the growth of student loan debt, income, and other types of debt in consumer bankruptcy cases filed each year …