Student loans can be discharged in bankruptcy – sometimes And the government is trying to make it easier. The law allows for a discharge in the event of an “undue hardship,” but such discharges are rarely pursued. However, in almost half of cases the loans were completely discharged. The Department of Education is now instructing loan holders to be more selective in choosing which discharges to oppose by analyzing likelihood of the debtor prevailing and costs of litigation. Photo By Chris Pruitt (Own work) [CC BY-SA 3.0 (http://creativecommons.org/licenses/by-sa/3.0)], via Wikimedia Commons