Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023

H.R. 306, the Stopping Abusive Student Loan Collection Practices in Bankruptcy Act of 2023, aims to protect individuals who successfully seek to have their student loans discharged in bankruptcy due to "undue hardship." Under current law, proving undue hardship is a difficult and often expensive legal process. This bill would require the bankruptcy court to order the lender to pay the borrower’s attorney’s fees and legal costs if the court determines that the lender’s opposition to the discharge was not "substantially justified." By shifting these costs to the creditor in cases of unjustified opposition, the bill seeks to make the bankruptcy process more accessible and less financially risky for burdened borrowers.