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Saturday, October 24, 2026Updated 16:47 UTC

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Federal Student Loans Aren’t Bankruptcy-Proof – The Government Now Backs Qualifying Cases

Source: Money Crashers · Oct 24, 2026 11:45 UTC

Pile of physical souvenir Bitcoin coins — File photo antanacoins / Flickr · CC BY-SA 2.0 · Source

The Quick Take

Bankruptcy can erase federal student loans when repaying them would leave you unable to afford basic living costs for years. Since 2022, government lawyers have used a standard form to decide when to support that relief for loans the Education Department holds. If your income barely covers essentials and that won’t change, ask a bankruptcy attorney whether you qualify. Source

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