This bill amends federal bankruptcy law to protect borrowers struggling with student loan debt. Currently, creditors can use certain collection tactics during bankruptcy proceedings, but this legislation would restrict those practices by modifying how the rules apply when a debtor is seeking to discharge student loans based on undue hardship. The change affects anyone filing for bankruptcy protection after the bill becomes law who wants to challenge whether their student loans should be forgiven due to genuine financial hardship. The bill contains no new federal funding and would take effect immediately upon enactment, applying only to bankruptcy cases filed after that date.
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