The Biden administration updated guidelines that allow the discharge of student loan debt in a bankruptcy proceeding.

Biden Administration to Make It Easier to Dismiss Student Loans In Bankruptcy

An update on the biden administration's quest for student loan forgiveness, it will now be easier for individuals in bankruptcy proceedings to prove they cannot pay back their loans. New guidelines require the government to calculate whether a borrower's expenses are equal or greater than their income, and if they are greater, the Justice Department will rule that the individual cannot pay back the debts. The doj will also consider whether the borrower would be able to pay back the loans in the future. The previous process involved the federal government digging into a person's financial history. Now, the White House is more broad. Student debt cancelation plan remains on hold after two courts blocked the policy.