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(GEN-15-13) Subject: Undue Hardship Discharge of Title IV Loans in Bankruptcy Adversary Proceedings

Publication Date: July 7, 2015

DCL ID: GEN-15-13

Subject: Undue Hardship Discharge of Title IV Loans in Bankruptcy Adversary Proceedings

Summary: This letter provides guidance to guarantors and educational institutions participating in the Federal Family Education Loan Program (FFELP) and Federal Perkins Loan Program (Perkins), hereinafter “holder[s],” as they continue to implement U.S. Department of Education (Department or Education) regulations (at 34 C.F.R. § 682.402(i)(1)(ii) & (iii)) (FFELP) and 34 C.F.R. § 674.49(c)(Perkins)), which govern their actions in defending bankruptcy adversary proceedings seeking discharge of student loans authorized by Title IV of the Higher Education Act of 1965, as amended (hereinafter Title IV), on the basis that excepting the loans from discharge would impose undue hardship upon the borrowers.

For more information, please see the attached PDF file for Dear Colleague Letter GEN-15-13.

Last Modified: 07/06/2015