Student Loan Law: 15.7.5 Use of Older Dischargeability Standards Today When Student’s Pre-1998 Bankruptcy Did Not Determine Student Loan’s Dischargeability
Unless the student or another party seeks a determination in the bankruptcy proceeding concerning a student loan’s dischargeability, the loan’s dischargeability will not be determined in a bankruptcy proceeding—the loan is neither ruled discharged nor enforceable. Instead, whether the loan has been discharged by the bankruptcy will not be determined until a later date, perhaps many years later, when a guarantor or the Department seeks to collect on that debt in court or when the student seeks a judicial determination of the loan’s enforceability.