Student Loan Undue Hardship Checklist

The short version

• Federal student loans can be discharged in bankruptcy if repaying them would create an undue hardship (11 U.S.C. § 523(a)(8)).
• Based on U.S. Department of Justice guidance issued in November 2022, government attorneys assess three factors: your current ability to repay, whether that hardship is likely to continue, and your good-faith efforts to repay.
• This page is not an official DOJ checklist — it's a plain-language summary based on that guidance, organized so you can gather the right information before you talk to an attorney.
• Use it alongside LoanFree.AI's free eligibility check to see where your situation stands.

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This checklist walks through the same three factors the Department of Justice uses to review federal student loan discharge requests, in plain language, so you know what to look at and what to gather before you file.

Factor 1: Current Ability to Repay

This factor asks whether you can maintain a minimal standard of living right now if you had to make your full student loan payments.

• Add up your household's gross income — your job, a spouse or partner's income, unemployment benefits, Social Security, and any other regular income.
• List your necessary monthly expenses — housing, utilities, food, transportation, personal care, and other basic costs.
• Compare the two. If your reasonable, necessary expenses equal or exceed your income, this factor generally points toward hardship.
• If you could afford something toward your loans but not the full required payment, that doesn't necessarily rule out a partial discharge — it's still worth documenting.

Factor 2: Whether the Hardship Is Likely to Continue

This factor asks whether your inability to repay is likely to persist for a significant part of your remaining repayment period, not just a temporary rough patch.

Circumstances that tend to support this factor include:

• You are age 65 or older.
• You have a disability or chronic illness or injury that limits your ability to earn income.
• You've experienced significant unemployment — for example, being out of work for a large portion of the last several years.
• You didn't complete the degree program the loan paid for.
• You've been in repayment (including forbearance or deferment) for a long time, generally a decade or more.

If none of these apply to you, you can still document other facts showing your situation isn't likely to improve — for example, a long-term reduction in earning capacity or ongoing caregiving responsibilities.

Factor 3: Good-Faith Efforts to Repay

This factor looks at what you've actually done about your loans — not whether you paid in full, but whether you engaged with the system in good faith.

Evidence that supports this factor includes:

• Making payments when you were able to, even partial ones.
• Applying for deferment or forbearance.
• Applying for an income-driven repayment (IDR) plan.
• Applying for a federal loan consolidation.
• Responding to outreach from your servicer or a collector.
• Contacting the Department of Education or your loan servicer about your options.

Not enrolling in an income-driven repayment plan doesn't automatically count against you — if you have a reasonable explanation (for example, you were given inaccurate information, or you reasonably believed it wouldn't help), that can still support good faith.

Documents to Gather

Before you meet with an attorney or start a case, it helps to have these ready:

• Recent federal tax returns (typically the last 1–2 years)
• Recent pay stubs or other proof of income
• A simple list of your monthly household expenses
• Records of any deferments, forbearances, or income-driven repayment applications
• Correspondence with your loan servicer or the Department of Education
• Medical documentation, if a disability or chronic illness applies to your situation
• Your federal student loan account history (available through your servicer or studentaid.gov)

Having these organized ahead of time makes the eligibility review faster and gives your attorney a clearer picture from the start.

What This Checklist Is — and Isn't

This page is based on U.S. Department of Justice guidance and its public fact sheet, reorganized into plain language. It is not an official DOJ checklist, and the Department of Justice did not create or endorse this page. It's also not a guarantee of any outcome — every case depends on your individual circumstances and the law of your jurisdiction.

This article is for general informational purposes only and does not constitute legal advice. Consult a licensed bankruptcy attorney about your specific situation before making any decisions.

See Where You Stand — Free

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Frequently asked questions

What are the 3 DOJ factors for student loan undue hardship?

Based on U.S. Department of Justice guidance issued in November 2022, government attorneys assess three factors: your present ability to repay the loan while maintaining a minimal standard of living, whether that inability to repay is likely to continue for a significant part of the repayment period, and whether you made good-faith efforts to repay, such as contacting your servicer or applying for income-driven repayment.

Is this an official DOJ checklist?

No. This page is based on U.S. Department of Justice guidance and its public fact sheet, reorganized into a plain-language checklist. The Department of Justice did not create or endorse this page. Always confirm current requirements directly on the Department of Justice website and with a licensed attorney.

What documents should I gather before filing for student loan discharge?

Common documents include recent tax returns, pay stubs or other proof of income, a list of monthly household expenses, records of any deferments, forbearances, or income-driven repayment applications, medical documentation if a disability or chronic illness applies, and your federal student loan account history from the Department of Education or your loan servicer.

Does missing a factor mean I don't qualify for student loan discharge?

Not automatically. The guidance treats each factor as part of a broader review, not a rigid pass-fail rule. For example, not enrolling in an income-driven repayment plan does not by itself rule out good faith if you have a reasonable explanation or other evidence of good-faith effort. A full eligibility review looks at your specific circumstances.

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This article is for general informational purposes only and does not constitute legal advice. It is based on publicly available U.S. Department of Justice guidance and is not an official DOJ document. Eligibility depends on individual circumstances and the law of your jurisdiction. Consult a licensed bankruptcy attorney about your specific situation.

Source: U.S. Department of Justice — Student Loan Guidance · 11 U.S.C. § 523(a)(8)