A replacement for page 46 of the 2003 Fall Training Participants Handout has been posted to the NASFAA Web site. This replacement page provides updated information regarding bankruptcy discharges of federal student loans that went into effect for bankruptcy petitions filed after October 7, 1998.
For borrowers who filed for bankruptcy after that date, a federal student loan is not dischargeable unless the bankruptcy court has determined that repayment of the loan would cause an undue hardship to the debtor and his or her dependents.
The length of time the loan has been in repayment is no longer a factor in determining eligibility for a bankruptcy discharge.
Please note that only page 46 is being replaced; page 45 (on the reverse side of page 46) remains unchanged and should not be discarded.
Posted June 16, 2005 on www.NASFAA.org, the Web Site of the
National Association of Student Financial Aid Administrators (NASFAA).
Copyright 2005. Redistribution to non-NASFAA institutions is prohibited
Please submit Web Site questions or comments to web@nasfaa.org
