Student loans are rarely discharged in bankruptcy, but it is possible under a specific legal test

You can discharge federal and private student loans in bankruptcy, but only if you meet the Brunner test — a legal standard that courts use to decide whether repaying your loans would cause genuine hardship. Most people do not meet it. The test requires you to show three things: that you cannot maintain a minimal standard of living if you repay the loans, that this hardship will likely continue for most of the repayment period, and that you have made a good-faith effort to repay before filing. Courts interpret "minimal standard of living" strictly, and "good-faith effort" means you have to have tried income-driven repayment plans, deferment, or forbearance first.

The Brunner test is the rule in most federal courts. A few courts use a different, somewhat more flexible standard called the totality of circumstances test, which weighs all factors together rather than requiring you to clear three separate hurdles. Which test applies depends on which federal circuit your bankruptcy court sits in. Even under the more flexible standard, discharge is uncommon.

Key Takeaways

  • Student loan discharge in bankruptcy requires meeting the Brunner test or, in some court circuits, the totality of circumstances test — both are difficult to satisfy.
  • You must show you cannot afford a minimal standard of living while repaying, that hardship will continue for most of the loan term, and that you tried repayment options before filing.
  • Income-driven repayment plans, deferment, and forbearance all count as good-faith efforts and must be attempted before a court will consider discharge.
  • Filing an adversary proceeding — a separate lawsuit within your bankruptcy case — is the formal way to request student loan discharge, and it requires a lawyer in most cases.

What the Brunner test actually requires

The Brunner test comes from a 1987 federal court case and has become the standard in most of the country. It has three parts, and you must satisfy all three. Courts do not average them or weigh them — you need to clear each one.

The first prong asks whether you can maintain a minimal standard of living if you repay your loans. "Minimal" is the key word. Courts have rejected discharge claims from people earning $30,000 a year, people with children, and people with medical debt, because judges found they could still afford food, housing, and basic utilities while making student loan payments. You are not trying to prove you cannot afford your current lifestyle — you are trying to prove you cannot afford the basics. This is a high bar.

The second prong requires you to show that this hardship will persist for a significant portion of your repayment period — usually interpreted as most of the loan term. If you are young and early in your career, courts often assume your income will rise, which works against you. If you have a permanent disability or a documented medical condition that prevents work, this prong is easier to meet.

The third prong asks whether you made a good-faith effort to repay. This means you must have tried income-driven repayment plans, deferment, or forbearance before filing bankruptcy. If you ignored your loans or never contacted your servicer, courts will deny discharge. If you used income-driven repayment and your payment was still $0 or very low for years, that strengthens your case.

The totality of circumstances test in some circuits

The First, Sixth, Seventh, and Eighth federal circuits use a different approach. Instead of three separate requirements, they weigh all relevant facts together — your age, health, income, job prospects, family obligations, and efforts to repay. This test is theoretically more flexible, but in practice discharge remains rare because courts still require substantial evidence of permanent hardship.

If your bankruptcy case is in one of these circuits, you have a somewhat better chance of discharge than under the strict Brunner test, but you still need strong evidence that repayment is impossible, not just difficult. Courts in these circuits have discharged loans for people with severe disabilities, chronic illnesses that prevent work, or documented mental health conditions that make employment impossible. They have also denied discharge for people with modest incomes who could theoretically make small payments.

How to file for student loan discharge in bankruptcy

Discharging student loans is not automatic when you file bankruptcy. You must file a separate lawsuit called an adversary proceeding against your loan servicer or the Department of Education. This is a formal legal action within your bankruptcy case, and it requires you to prove your case to a judge.

You file the adversary proceeding after your bankruptcy case is already open. Your bankruptcy attorney (if you have one) will draft a complaint that lays out the facts of your hardship and argues why you meet the legal test in your circuit. The Department of Education or your loan servicer will respond, usually arguing that you have not met the test. You may have a hearing where you testify about your income, expenses, health, and job prospects.

Most people cannot handle this alone. Adversary proceedings are civil lawsuits with formal rules of evidence and procedure. If you cannot afford a bankruptcy attorney, some legal aid organizations will take student loan discharge cases, but they are selective because these cases are time-intensive and difficult to win. You can search for legal aid in your area through the Legal Services Corporation website.

What counts as good-faith repayment effort

Courts take the good-faith prong seriously. You cannot straightforward ignore your loans and then file bankruptcy claiming hardship. You have to show you tried to work with your servicer and explored repayment options.

Income-driven repayment plans — Income-Based Repayment (IBR), Pay As You Earn (PAYE), Revised Pay As You Earn (REPAYE), and Income-Contingent Repayment (ICR) — all count as good-faith efforts. If you enrolled in one of these plans and your payment was $0 or very low for several years because your income was low, that strengthens your discharge case. Courts see this as proof you tried to repay within your means.

Deferment and forbearance also count. If you requested deferment or forbearance when you could not pay, that shows you tried to manage the debt responsibly. Forbearance is easier to get than deferment and does not require financial hardship, but either one demonstrates you contacted your servicer and sought relief.

What does not count: ignoring collection calls, not responding to notices, or straightforward deciding not to pay. If you had the ability to enroll in income-driven repayment and did not, courts will hold that against you.

Partial discharge and other outcomes

Courts do not always grant full discharge or deny it completely. Some judges have ordered partial discharge — forgiving a portion of the debt while leaving the rest in place. This is less common than full discharge or full denial, but it can happen if the judge finds you meet the test for some of your loans but not others, or if circumstances are mixed.

Another possible outcome is that the court denies discharge but the judge notes that if your circumstances worsen — if you lose your job, develop a disability, or face a major life change — you can file another adversary proceeding. This is not a may provide, but it signals that the door is not permanently closed.

Some people use bankruptcy to discharge other debts (credit cards, medical bills, personal loans) while keeping student loans, which frees up money to put toward education debt. This is not discharge, but it can make repayment more manageable.

Federal versus private student loans

Both federal and private student loans can theoretically be discharged under the Brunner test or totality of circumstances test. The legal standard is the same. However, the Department of Education (which holds most federal loans) and private lenders (which hold private loans) may respond differently to your adversary proceeding.

The Department of Education has more resources to defend discharge cases and tends to argue aggressively that you have not met the test. Private lenders vary — some fight discharge cases, others settle. If you have both federal and private loans, you may need to file the adversary proceeding against both, or you can choose to pursue discharge only for one type.

Federal loans have income-driven repayment options that private loans do not. If you have not exhausted income-driven repayment, courts will be less sympathetic to a discharge claim for federal loans. Private loans have no income-driven option, which can actually help your case if you have private debt — you can argue you had no way to adjust payments to your income.

Frequently Asked Questions

Do I have to file bankruptcy to get student loans discharged?

Yes. Student loan discharge only happens through an adversary proceeding filed within a bankruptcy case. You cannot discharge student loans outside of bankruptcy. However, you may be able to manage federal loans through income-driven repayment, deferment, or forbearance without filing bankruptcy.

What happens to my credit if I file an adversary proceeding for student loan discharge?

Filing bankruptcy itself damages your credit. Filing an adversary proceeding within that bankruptcy does not cause additional credit harm — the bankruptcy is already on your report. If discharge is denied, your credit is affected only by the bankruptcy filing, not by the failed discharge attempt.

Can I discharge Parent PLUS loans or federal loans I took out for my children?

Yes, Parent PLUS loans and federal loans in your name can be discharged under the same Brunner or totality of circumstances test. The legal standard does not change based on loan type. However, courts may consider whether you have other income sources or assets when evaluating hardship.

How long does an adversary proceeding take?

Adversary proceedings typically take several months to over a year, depending on the court's schedule and whether the case goes to trial. Some settle earlier if the lender and borrower reach an agreement. Your bankruptcy attorney can give you a timeline based on your local court's practices.

What if I cannot afford a lawyer for the adversary proceeding?

Legal aid organizations in some areas handle student loan discharge cases, though they are selective. You can search for legal aid through the Legal Services Corporation website. Some bankruptcy attorneys will negotiate fees or payment plans for adversary proceedings. Filing without a lawyer is possible but very difficult given the formal legal requirements.