Supreme Court Considers Case About Excusing Student Debt Through Bankruptcy

Supreme Court Considers Case About Excusing Student Debt Through Bankruptcy 1

Dan Sheehan for The Chronicle

Rafael I. Pardo, an associate professor at Seattle U.'s School of Law, says that the standard for applying "undue hardship" in loan repayment is inconsistent.

The U.S. Supreme Court is scheduled to hear arguments in a case this week that weighs federal rules for dismissing student debt in bankruptcy proceedings against the authority of a judge's final court orders.

The case, United Student Aid Funds Inc. v. Espinosa, highlights the complex and sometimes contradictory nature of bankruptcy law that makes student loans as difficult to excuse as court-ordered child support. To dismiss student loans in bankruptcy, borrowers must show

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