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U.S. Higher Education Financing Has Significantly Changed, So Too Should Seventh Circuit Student Loan Discharge Law, William L. Ryan

Northern Illinois University Law Review

Every year in the U.S., millions of students use public and private student loans to finance a portion of their post-secondary education. Inevitably, many student borrowers find themselves in the financial doldrums in the years subsequent to the initial loan disbursement. From this precarious position of defaulted debtor, many seek a fresh start by way of a personal debt discharge in Bankruptcy Court. Prior to 1978, student loan debt was discharged in routine bankruptcy proceedings. In 1978, Congress inserted provision 11 U.S.C. 523(a)(8) into the Bankruptcy Code. Section 523(a)(8) is better known as the "undue hardship" provision. The undue hardship …