Former Bankruptcy Judge Warns Trump's Student Loan Overhaul May Increase Bankruptcies
Judge Sarah Sharer Curley, a former U.S. bankruptcy judge and author of 'The Price of Forgiveness,' argues that current student loan policies are unfair to borrowers who pursue higher education but later struggle with debt. She highlights the case of an elderly woman burdened by over $584,000 in loans from decades ago, which she could not discharge due to strict bankruptcy laws. Curley notes a significant rise in personal bankruptcy filings—over 500,000 cases were filed in 2025, nearly double the number three years prior. She attributes this trend partly to rising education costs and inflexible debt relief policies that prevent individuals from escaping crushing student loan obligations. Curley criticizes a system where financial markets are allowed significant risk-taking while individual borrowers face rigid constraints when seeking forgiveness for educational investments gone awry.
Topics: bankruptcy legal reform personal finance student debt