Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2026

This bill modifies the U.S. Bankruptcy Code to allow individuals to request a court determination of whether their student loans should be discharged based on "undue hardship" at the time they file for bankruptcy. Currently, such a request can only be made after a loan repayment plan has failed, but this legislation would enable debtors to seek this relief immediately upon filing. The change applies only to bankruptcy cases that begin on or after the date the law is enacted. By allowing earlier evaluation, the bill aims to provide a clearer path for borrowers facing financial difficulty to potentially eliminate their student loan debt during the bankruptcy process.