Former Bankruptcy Judge Warns Trump Loan Caps Will Trigger Surge in Filings
Former U.S. Bankruptcy Judge Sarah Sharer Curley warns that recent legislative changes to student loans will likely spike bankruptcy filings. In her new book, she highlights how strict discharge laws and the dismantling of federal repayment programs have left borrowers with no viable path to relief. Curley notes that 2025 saw a 50% rise in personal bankruptcies, a trend she attributes to rising tuition, high-interest private loans, and the elimination of safety nets like the SAVE plan. She argues that while financial institutions receive broad forgiveness, individuals face a tortuous legal process that often denies them discharge for education debt, leading to severe emotional distress and financial ruin.