Student loans are generally not dischargeable through bankruptcy in the United States for several reasons:
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Public Policy Concerns: The idea behind making student loans non-dischargeable is to protect the federal student loan program. If students could easily discharge their loans through bankruptcy, it might jeopardize the availability and terms of future loans for other students. The government wants to ensure that funds are available for future students to borrow.
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Potential for Abuse: There’s a concern that if student loans were easily dischargeable, some individuals might take advantage of the system. For instance, a student could theoretically borrow a large sum of money, earn a degree, and then immediately file for bankruptcy to have the debt wiped out, all without ever intending to repay the loans.
