An estimated 20% of American adults are carrying an average of over $26,000 in student loan debt. Currently, it is nearly impossible to discharge student loan debt through Chapter 7 or Chapter 13 bankruptcy.
While the "undue hardship" clause exists, in reality this rarely allows debtors to discharge student loans due to the extreme burden of proof required. The "undue hardship" clause is not enough. Student loans should be subject to the same bankruptcy laws as any other personal loan. If a bankruptcy will discharge credit card debt or auto-loan debt, then it should also discharge student loan debt.