For decades, bankruptcy practitioners like myself have watched clients walk through our doors buried under student loan debt—only to discover that relief under the Bankruptcy Code is largely off-limits. The reason? An impossibly high legal standard requiring borrowers to prove “undue hardship” to discharge their student loans, a vague and outdated threshold that has turned the promise of a fresh start into a legal mirage.

But that may soon change.

This week, Representative Lou Correa (CA-46) introduced the Student Loan Bankruptcy Improvement Act of 2025, a bill aimed at restoring fairness and access to bankruptcy relief for student loan borrowers. The legislation, co-sponsored by 16 other House Democrats, proposes a small but powerful fix: remove the word “undue” from the “undue hardship” requirement. In doing so, it would return discretion to bankruptcy judges and open the door to genuine debt relief for those who need it most.

As Rep. Correa put it, “Too many smart, hard-working Americans are drowning in student loans that keep them from fully contributing to our economy. The bankruptcy courts should be open and accessible to these hard-working Americans, balancing the interests of both debtors and creditors.”

I agree. This is not about giving borrowers a free pass—this is about restoring a safety valve for those who’ve exhausted all other options.

Experts testifying before Congress echoed the same sentiment. Judge Michelle Harner, a bankruptcy judge in Maryland, noted that removing “undue” would force courts to rethink the current legal standard and allow for a more reasonable and humane approach. Professor Douglas Baird from the University of Chicago called the bill “a surgical way to correct the problem of Brunner,” referring to the outdated 1987 case that entrenched an almost insurmountable barrier to student loan discharge. And Professor Melissa Jacoby emphasized how this change would finally give courts permission to move away from overly harsh interpretations of the law.

It’s also important to note that this bill has broad support from consumer protection organizations, including the National Association of Consumer Bankruptcy Attorneys. We see firsthand how today’s broken system traps people in decades of debt that would be dischargeable if it were any other kind.

If passed, this legislation would not only help the 43 million Americans carrying student loans, but it would reaffirm the principle that bankruptcy is meant to offer an honest but unfortunate debtor a second chance. That’s what bankruptcy is supposed to do. That’s what this bill helps restore.

I fully support this legislation—and I hope Congress has the courage to pass it.