Lowering Costs for Caregivers Act of 2025

House Bill

H.R. 138

119th Congress

Lowering Costs for Caregivers Act of 2025

In Committee

Introduced:Oct 28, 2025

Primary Sponsor

Darrell E. Issa

Representative

Republican

CA-48

Cosponsors

5

Quick Stats

Policy Area

Finance and Financial Sector

Summary

This bill would make it easier for people with private student loans to get those loans discharged, or forgiven, through bankruptcy. Under current law, people can only get their student loans discharged if they can prove the loans are causing them an 'undue hardship'. This bill would remove that requirement for private student loans, making it simpler for borrowers to have those loans wiped out in bankruptcy.

Latest Action

Referred to the House Committee on the Judiciary.

AI Summary

Plain-English explanation of this bill

This bill would make it easier for people with private student loans to get those loans discharged, or forgiven, through bankruptcy. Under current law, people can only get their student loans discharged if they can prove the loans are causing them an 'undue hardship'. This bill would remove that requirement for private student loans, making it simpler for borrowers to have those loans wiped out in bankruptcy.

Last updated: 12/29/2025

Official Summary

Congressional Research Service summary

Private Student Loan Bankruptcy Fairness Act of 2023 This bill modifies the treatment of certain student loans in bankruptcy. Specifically, it allows private student loans to be discharged in bankruptcy regardless of whether a debtor demonstrates undue hardship. Under current law, student loans may be discharged in bankruptcy only if the loans impose an undue hardship on the debtor.

Key Points

Main provisions of the bill

Allows private student loans to be discharged in bankruptcy without having to prove 'undue hardship'
Current law requires borrowers to demonstrate undue hardship to get student loans discharged in bankruptcy
This bill would make it easier for people with private student loans to have that debt eliminated through bankruptcy

How This Impacts Americans

Potential effects on citizens and communities

This bill would primarily impact people who have taken out private student loans and are struggling to repay that debt. It could provide financial relief to borrowers who are unable to make their loan payments, by allowing them to have that debt cleared through bankruptcy. This could help alleviate the burden of student loan debt for many Americans.

Policy Areas

Primary Policy Area

Finance and Financial Sector

Related Subjects

Bankruptcy

Higher education

Student aid and college costs

Scope & Jurisdiction

Jurisdiction Level

federal

Congressional Session

119th Congress

Citation Reference

138, 119th Congress (2025). "Lowering Costs for Caregivers Act of 2025". Source: Voter's Right Platform. https://votersright.org/bills/118-hr-138