With recent changes to the Department of Justice’s policies, many borrowers now have the opportunity to discharge their student loans through bankruptcy. At Walker & Walker, we’ve already helped dozens of clients eliminate their student loans using this legal route. But as we look toward the next election, many people wonder—what would a Trump administration mean for student loan discharges through bankruptcy?
With the recent election of President Donald Trump, there’s widespread interest in how his administration may impact the ability to discharge student loans through bankruptcy. At Walker & Walker, we’ve been helping people eliminate their student loans in court, and under the current Department of Justice guidelines, many borrowers are eligible for this relief. But what will student loan bankruptcy look like under Trump?
Student Loan Bankruptcy Relief: Current Opportunities
Recent changes to Department of Justice guidelines now allow more borrowers to pursue student loan discharges through bankruptcy. Unlike blanket forgiveness, which Trump’s administration has opposed, bankruptcy is a structured process that determines borrowers’ ability to pay on a case-by-case basis. At Walker & Walker, we’ve already helped dozens of clients eliminate student loan debt using this approach, and for now, it remains a powerful tool.
How Trump’s Business Experience with Bankruptcy May Influence Student Loan Policies
President Trump is well-acquainted with bankruptcy laws. Over the years, he has successfully used Chapter 11 bankruptcy to restructure hotel and casino debts, allowing these businesses to continue operating while repaying what they could. His familiarity with bankruptcy could be an advantage, as he may understand the value of this legal tool for borrowers who genuinely can’t afford their student loan repayments.
What We Can Expect for Student Loan Discharge in Bankruptcy
With a Trump administration in office, we believe student loan discharge through bankruptcy will continue as an option for borrowers facing financial hardship. Given that bankruptcy relief is not an all-encompassing forgiveness policy, but rather a targeted measure based on financial need, it’s likely to be seen as a fair approach. However, any changes could impact eligibility or procedures, which makes now an ideal time to begin the process.
How to Know if You’re Eligible for Student Loan Discharge in Bankruptcy
If you meet these three criteria, you may be able to discharge your student loans through bankruptcy:
- 10 Years Since Graduation: You graduated or withdrew from school at least 10 years ago.
- Previous Payments or Income-Driven Plan Participation: You’ve made at least one payment on the loan or participated in an income-driven repayment plan (where payment amounts are based on income).
- Moderate Income Level: Your income is not significantly above the median income for your household size.
Take Action Now for Debt Relief
While student loan bankruptcy discharge remains an option, it’s wise to act before any future changes. At Walker & Walker, we’re here to help you explore your options, secure relief, and achieve financial stability.
Ready to find out more? Contact us at 612-824-4357 for a free consultation. We’ll guide you through the process, ensuring you’re positioned to benefit from current policies.
