New Student Loan Discharge Checker Helps Borrowers Explore Whether Bankruptcy Relief May Be Available
PHOENIX, Arizona – August 19, 2026 – With approximately 9 million federal student loan borrowers in default, representing $220 billion in outstanding loans, USBankruptcyHelp.com has launched a free Student Loan Discharge Checker designed to help borrowers explore whether their financial circumstances may warrant further review for a potential bankruptcy discharge.
The new eight-step educational tool walks users through questions about their student loans, income and expenses, employment, household circumstances, long-term financial hardship and repayment history. Based on the information provided, the checker gives users a preliminary estimate of how strongly their circumstances may support further review of a potential student loan discharge.
No contact information is required to use the checker. Users can also save or print a PDF of their results for their records or bring it to a consultation with a bankruptcy attorney.
“One of the most persistent misconceptions I see is that student loans can never be discharged in bankruptcy,” said Casey Yontz, JD, bankruptcy attorney and founder of USBankruptcyHelp.com. “The reality is more complicated. Discharge is not automatic and it is not appropriate for everyone, but some borrowers may have a stronger case than they realize. We built the checker to help people understand whether their circumstances are worth investigating further.”
Approximately 9 Million Federal Student Loan Borrowers Are in Default
The launch comes as millions of federal student loan borrowers are experiencing serious repayment problems.
According to Federal Student Aid, an office of the U.S. Department of Education, approximately 9 million borrowers with $220 billion in outstanding federal student loans were in default as of March 2026. Those defaulted loans represented more than 13% of the $1.64 trillion federally managed student loan portfolio.
Federal Student Aid also reported that about 3.5 million recipients with loans in active repayment were more than 30 days delinquent, including approximately 1.4 million in late-stage delinquency who were at risk of defaulting in the next six months.
USBankruptcyHelp.com tracks federal student loan default, delinquency and related measures in its U.S. Student Loan Default Statistics resource.
Student Loans Can Be Discharged in Bankruptcy in Some Cases
Most federal student loans and many private education loans are treated differently from ordinary unsecured debts in bankruptcy and are not automatically discharged.
For student loans subject to the Bankruptcy Code’s undue-hardship requirement, a borrower generally must file a separate adversary proceeding within the bankruptcy case and establish that repayment would impose an undue hardship.
Whether discharge is appropriate depends heavily on the borrower’s individual circumstances. Factors that may be relevant include income, necessary living expenses, employment and realistic earning ability, health or disability issues, dependents and caregiving responsibilities, the expected duration of financial hardship, repayment history and efforts to manage the loans.
USBankruptcyHelp.com’s guide, Can You File Bankruptcy on Student Loans?, explains the bankruptcy process, the undue-hardship standard and issues that may arise with federal and private student loans.
The process for evaluating federal student loan discharge requests has also changed in recent years.
The U.S. Department of Justice, working with the Department of Education, implemented a standardized process intended to provide more consistent expectations for student loan discharge proceedings, reduce the burden on borrowers pursuing discharge and make it easier for government attorneys to identify cases in which discharge may be appropriate.
The current Department of Justice student loan bankruptcy guidance includes an attestation form through which borrowers provide information relevant to the government’s undue-hardship analysis.
“The important message for borrowers is not that bankruptcy will eliminate their student loans,” Yontz said. “It is that they should not automatically rule out the possibility simply because they have heard that student loans can never be discharged. The facts of the individual case matter.”
How Bankruptcy Chapter Can Affect the Larger Debt Picture
For borrowers considering bankruptcy because of student loans and other debts, the bankruptcy chapter they file under can affect how the rest of their financial situation is handled.
Chapter 7 bankruptcy is generally designed to discharge qualifying unsecured debts without requiring a three-to-five-year repayment plan, although eligibility, property exemptions and other considerations can affect whether chapter 7 is appropriate.
Chapter 13 bankruptcy generally involves a court-supervised repayment plan lasting three to five years and may provide options for borrowers who need time to address secured debts, protect property or do not qualify for chapter 7.
The treatment of student loans requires separate analysis, and filing under either chapter does not by itself mean qualifying student loan debt will be discharged.
Borrowers who are still trying to understand which form of consumer bankruptcy may fit their broader financial situation can also review USBankruptcyHelp.com’s chapter 7 vs. chapter 13 comparison.
How the Student Loan Discharge Checker Works
The Student Loan Discharge Checker asks users a series of questions designed to identify facts that may be relevant to a student loan bankruptcy analysis.
The tool reviews information including:
- Bankruptcy status and loan type
- Approximate student loan balance
- Income and necessary living expenses
- Household size and dependents
- Employment status and realistic earning ability
- Medical, disability and caregiving circumstances
- Repayment history and efforts to manage the loans
- Long-term financial hardship factors
Based on the answers provided, the checker places the user’s circumstances into an educational result category that may indicate stronger potential factors for further review, moderate or mixed factors, weaker current factors, or a need for additional information.
The checker does not determine whether a borrower legally qualifies for discharge, predict how a court will rule, or replace an individualized review by a qualified bankruptcy attorney. Instead, it provides a preliminary estimate based on the user’s answers about income, expenses, employment, household circumstances, repayment history and other factors that may be relevant to an undue-hardship analysis.
A Starting Point for Borrowers Exploring Their Options
Student loan discharge is a fact-specific area of bankruptcy law, and legal standards, court decisions and local procedures can affect an individual case.
The Student Loan Discharge Checker is intended to provide borrowers with an educational starting point for understanding the issue and deciding whether their circumstances may warrant a more detailed review.
“This is exactly the kind of question where people often do not know whether it is even worth talking to a lawyer,” Yontz said. “Our goal was to give borrowers a way to organize their information, understand some of the factors that matter and make a more informed decision about what to do next.”
About USBankruptcyHelp.com
USBankruptcyHelp.com is an attorney-led bankruptcy decision-support resource created to help individuals and families understand their options, identify risks, avoid common mistakes and decide what questions they need to answer before moving forward.
The website combines plain-English bankruptcy information with state-specific guides, calculators, estimators, comparison tools and public data resources. Its goal is to become one of the most useful bankruptcy decision-support resources on the web by helping readers move beyond general definitions and better understand how bankruptcy may apply to their income, property, debts and immediate financial concerns.
Bankruptcy content published by USBankruptcyHelp.com is written, reviewed or editorially supervised by experienced bankruptcy attorneys. The website is not a law firm, does not provide legal representation and does not offer legal advice. USBankruptcyHelp.com is not affiliated with or endorsed by the federal judiciary.
Media Contact
Company Name: USBankruptcyHelp.com
Contact Person: Casey Yontz
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Phone: 480-619-8147
Address:4425 E. Agave Rd. Suite 110
City: Phoenix
State: AZ
Country: United States
Website: https://www.usbankruptcyhelp.com
