Student Loan Bankruptcy Act of 2018

Student Loan Bankruptcy Act of 2018

This bill allows a student loan to be discharged in bankruptcy, without proving undue hardship, if the loan first became due more than five years before the bankruptcy filing.

[Congressional Bills 115th Congress]
[From the U.S. Government Publishing Office]
[H.R. 6588 Introduced in House (IH)]

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115th CONGRESS
  2d Session
                                H. R. 6588

To amend title 11 of the United States Code to modify the circumstances 
 under current law to allow an individual debtor to discharge certain 
educational loans and educational benefits received by the debtor more 
than 5 years before the commencement of the bankruptcy case under such 
                                 title.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 26, 2018

  Mr. Correa introduced the following bill; which was referred to the 
                       Committee on the Judiciary

_______________________________________________________________________

                                 A BILL


 
To amend title 11 of the United States Code to modify the circumstances 
 under current law to allow an individual debtor to discharge certain 
educational loans and educational benefits received by the debtor more 
than 5 years before the commencement of the bankruptcy case under such 
                                 title.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Student Loan Bankruptcy Act of 
2018''.

SEC. 2. AMENDMENT.

    Section 523(a)(8) of title 11 of the United States Code is amended 
by inserting ``that first became due more than 5 years (exclusive of 
any applicable suspension of the repayment period) before the date of 
the filing of the petition, or'' after ``(8)''.

SEC. 3. EFFECTIVE DATE; APPLICATION OF AMENDMENT.

    (a) Effective Date.--Except as provided in subsection (b), this Act 
and the amendment made by this Act shall take effect 1 year after the 
date of the enactment of this Act.
    (b) Application of Amendment.--The amendment made by this Act shall 
not apply with respect to a debt for an educational benefit, 
overpayment, loan, scholarship, or stipend received by a debtor before 
the effective date of this Act.
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