Can you discharge student loans in 2026 through bankruptcy?

With recent conversations about student loan forgiveness, many people have asked us if you can discharge student loans in 2026 through bankruptcy or other debt relief solutions. In short, no—unlike most credit-card debt, medical bills, and other unsecured debts, many student loans do not automatically go away when you file bankruptcy. However, there are some “exceptions” to this rule that are worth considering.

In 2026, some borrowers may be able to discharge federal or private student loan debt through bankruptcy, although special rules apply. The federal government has also developed a more standardized process for evaluating certain federal student loan discharge requests, and Florida bankruptcy courts have introduced procedures that may affect how some of these cases are handled. Even when a student loan itself cannot be discharged, bankruptcy may still help by eliminating or restructuring other debts and freeing up money in your monthly budget.

At Hoskins, Turco, Lloyd & Lloyd, our Florida bankruptcy attorneys understand that overwhelming student loan debt is rarely the only financial problem a person is facing. Many borrowers are simultaneously trying to manage credit cards, medical bills, personal loans, collection accounts, car payments, housing costs, and other obligations. Our Florida bankruptcy attorneys can look at the entire picture and help you understand whether bankruptcy—and, in appropriate cases, a student loan discharge—could provide meaningful financial relief.

Can student loans actually be discharged in bankruptcy in 2026?

Potentially. As we said before, certain requirements must be met. Borrowers generally must satisfy a different standard than they do for ordinary unsecured debts such as credit cards or medical bills.

Federal bankruptcy law provides that certain educational debts are excepted from discharge unless requiring repayment would impose an “undue hardship” on the debtor and the debtor’s dependents. That rule appears in 11 U.S.C. § 523(a)(8).

This is an important distinction because the common statement that “student loans cannot be discharged in bankruptcy” is too broad. They can be discharged. The question is whether the borrower qualifies under the applicable bankruptcy law and follows the necessary procedure.

How does the DOJ evaluate federal student loan discharge in bankruptcy?

The U.S. Department of Justice currently maintains a standardized process, developed in coordination with the U.S. Department of Education, for evaluating federal student loan discharge cases. According to the DOJ, the process is intended to provide more consistent expectations, reduce the burden on debtors, and make it easier for government attorneys to identify cases in which discharge is appropriate. The DOJ’s Student Loan Guidance page was updated March 17, 2026.

Did Congress make student loans automatically dischargeable in bankruptcy in 2026?

No. There is no new rule making student loans automatically disappear when someone files bankruptcy.

The underlying provision of the Bankruptcy Code still matters. Section 523(a)(8) generally excepts covered educational debt from discharge unless keeping the debt would impose an undue hardship on the debtor and the debtor’s dependents.

In other words, filing Chapter 7 or Chapter 13 by itself does not necessarily eliminate a covered student loan.

A borrower seeking an undue-hardship determination ordinarily must pursue a separate lawsuit within the bankruptcy case called an adversary proceeding. The U.S. Supreme Court has recognized that this proceeding is the mechanism for obtaining the required undue-hardship determination.

So, if you have heard that a 2026 change means everyone can now include student loans in bankruptcy and automatically erase them, that is incorrect.

What has actually changed for student loan borrowers seeking bankruptcy relief?

The biggest practical change is not that Congress suddenly made every student loan dischargeable. Instead, federal agencies—and now some bankruptcy courts—have developed more structured procedures for evaluating borrowers who claim undue hardship.

The Department of Justice’s process asks borrowers to provide information about their financial circumstances through an attestation. Government attorneys then evaluate the case in consultation with the Department of Education.

The federal guidance was created with three major goals: establishing clearer and more consistent expectations, reducing the fact-gathering burden on borrowers, and increasing appropriate cases in which the government can stipulate to relevant facts and recommend discharge to the bankruptcy court.

This can be significant.

Historically, many borrowers never attempted to discharge their student loans because they assumed it was impossible or believed the litigation would be too difficult and expensive. The Department of Education itself has acknowledged that more borrowers may qualify for an undue-hardship discharge than actually pursue one.

What changed in Florida for student loan bankruptcy cases in 2026?

One particularly important 2026 development occurred in the U.S. Bankruptcy Court for the Middle District of Florida, which created a Student Loan Discharge Program to facilitate certain student loan discharge proceedings.

In July 2026, the Middle District of Florida established procedures involving document-preparation software and a portal intended to facilitate the submission and review of information needed for debtors seeking relief under § 523(a)(8).

The court then amended the order in August 2026 to clarify an important limitation: these particular procedures apply only to educational loans held by the U.S. Department of Education.

The program does not eliminate the debtor’s legal burden or automatically discharge a student loan. Instead, it provides an additional procedural framework for eligible cases.

Procedures also vary by bankruptcy district. For example, the Southern District of Florida maintains a Student Loan Program, but its 2026 procedures expressly state that participation in that program does not itself discharge a loan under § 523(a)(8). A debtor seeking an undue-hardship discharge must still file the required adversary complaint.

That is one reason speaking with a Florida bankruptcy attorney can be important: the rules that apply to your case depend not only on federal bankruptcy law but also on the court in which your case is filed and the type and holder of your student loans.

What does “undue hardship” mean for a Florida student loan borrower?

For Florida borrowers, courts generally apply the three-part Brunner test when determining whether repayment would create an undue hardship.

The U.S. Court of Appeals for the Eleventh Circuit, whose decisions govern federal courts in Florida, adopted the Brunner test for evaluating undue hardship.

Under that framework, the court generally considers whether:

1. Based on current income and expenses, the borrower could maintain a minimal standard of living while repaying the student loans;
2. Additional circumstances indicate that the borrower’s financial difficulties are likely to persist for a significant portion of the repayment period; and
3. The borrower has made a good-faith effort to repay the loans.

These are highly fact-specific questions. Two people with the same student loan balance can have very different bankruptcy outcomes because their income, expenses, dependents, employment prospects, repayment history, age, and other circumstances may be different.

What financial circumstances may support a student loan discharge?

There is no single income level, loan balance, age, disability, or financial condition that automatically guarantees an undue-hardship discharge.

Instead, the analysis looks at the borrower’s overall financial circumstances.

For example, potentially relevant circumstances may include limited disposable income after reasonable living expenses, long-term barriers to increasing income, age or retirement circumstances, significant caregiving responsibilities, a history of efforts to address or repay the loans, and other facts showing that the financial hardship is not merely temporary.

The DOJ’s guidance evaluates a borrower’s present ability to pay, future ability to pay, and good-faith efforts. The important takeaway is that borrowers should not disqualify themselves simply because they have heard that student loans are “never dischargeable.” A proper legal analysis depends on the facts.

Do you have to file a separate lawsuit to discharge student loans in bankruptcy?

Generally, yes. A borrower seeking an undue-hardship determination for student debt covered by § 523(a)(8) must initiate an adversary proceeding within the bankruptcy case.

An adversary proceeding functions much like a lawsuit inside the bankruptcy.

The borrower asks the bankruptcy court to determine whether the student loan debt should remain enforceable or whether requiring repayment would constitute an undue hardship. The Supreme Court has explained that bankruptcy rules require this determination to be pursued through an adversary proceeding.

This is why simply listing student loans on your Chapter 7 or Chapter 13 bankruptcy schedules should not be confused with obtaining a student loan discharge.

Can private student loans be discharged in bankruptcy?

Potentially. Whether a private student loan is protected by § 523(a)(8) depends on the nature of the particular debt, and a private loan should not automatically be assumed to be nondischargeable merely because it financed education.

Section 523(a)(8) describes specific categories of educational obligations that receive special treatment in bankruptcy, including certain governmental or nonprofit-backed obligations and “qualified education loans” as defined under federal tax law.

The analysis of a private student loan can therefore be different from the analysis of a federal Direct Loan. A bankruptcy attorney can review the loan documents, lender, loan purpose, school, and other relevant facts to determine whether the debt falls within § 523(a)(8) and, if it does, whether an undue-hardship claim should be considered.

Do the 2026 federal repayment changes affect the bankruptcy analysis?

They can. Federal student loan repayment options changed substantially in 2026, and the repayment programs available to a borrower may be relevant when evaluating the person’s overall options.

The Department of Education announced that new federal borrowers would have access beginning July 1, 2026, to a new Repayment Assistance Plan (RAP) and a Tiered Standard repayment plan as part of broader changes to federal student loan repayment.

Federal Student Aid also states that the SAVE Plan has ended and is no longer available, requiring affected borrowers to select another repayment plan. These repayment changes should not be confused with bankruptcy discharge rules. They are separate systems.

However, when someone is overwhelmed by student loans and credit cards, medical bills, personal loans, collection accounts, or other debts, a bankruptcy attorney can evaluate the complete financial picture rather than focusing on the student loan balance alone.

Can bankruptcy still help if your student loans are not discharged?

Yes. Bankruptcy may still provide substantial financial relief even if some or all student loans survive the case.

Imagine someone is struggling with student loans plus $35,000 in credit-card debt and thousands of dollars in medical bills. Even if the student loans remain after bankruptcy, eliminating qualifying unsecured debt may free up money that can be used for housing, food, transportation, and student loan payments.

Chapter 13 can also provide a court-supervised framework for reorganizing debts, depending on the circumstances.

That is why the right question is often not simply, “Will bankruptcy erase my student loans?”

A better question may be: “What would my entire financial situation look like after bankruptcy?”

Frequently asked questions about student loans and bankruptcy in 2026

Can student loans be discharged in Chapter 7 bankruptcy in 2026?

Yes, potentially. Filing Chapter 7 does not automatically discharge covered student loans. A borrower generally must obtain a determination that keeping the debt would impose an undue hardship under 11 U.S.C. § 523(a)(8).

Can student loans be discharged in Chapter 13 bankruptcy?

Yes, potentially, but Chapter 13 does not automatically eliminate covered student loans either. An undue-hardship determination generally requires an adversary proceeding. The Supreme Court has confirmed the importance of that separate determination for student loan dischargeability.

Does the Department of Education decide whether my student loans are discharged?

No. The bankruptcy court makes the ultimate discharge determination. For eligible federal loans, the Department of Justice and Department of Education can evaluate the borrower’s circumstances and the government may recommend discharge when warranted, but the judge makes the final decision.

Is the SAVE student loan repayment plan still available in 2026?

No. Federal Student Aid currently states that a federal court order ended the SAVE Plan and that it is no longer available. Affected borrowers must select another eligible repayment plan.

How do I find out whether my student loans could be discharged in bankruptcy?

Start with a bankruptcy attorney who can evaluate both your student loans and your overall financial circumstances. The type of loan, loan holder, income, reasonable living expenses, repayment history, future financial prospects, bankruptcy district, and other facts may all matter.

How can Hoskins, Turco, Lloyd & Lloyd help with student loan debt and bankruptcy?

Call 866-930-6435 to speak with our Florida bankruptcy attorneys to understand your options

Hoskins, Turco, Lloyd & Lloyd can review your complete financial situation and help you understand how Florida bankruptcy law and the federal student loan rules may apply to you.

If student loans, credit cards, medical bills, or other debts have made it difficult to keep up financially, contact Hoskins, Turco, Lloyd & Lloyd for a free bankruptcy consultation.

Our Florida bankruptcy attorneys can review your debts, income, expenses, assets, student loans, and financial goals and explain which debt-relief options may be available. We offer free, no-obligation consultations and help clients in Port St. Lucie, Fort Pierce, Vero Beach, Okeechobee, and surrounding communities.