question: why Student Loan Debt can never be discharged (not even through bankruptcy).
comment: The thought behind it is that students would graduate, have little assets anyway, and declare bankruptcy right away to eliminate or reduce their debt. They are young and have years to re-establish credit at that point, and they're generally not buying houses yet, so a bankruptcy wouldn't be all that bad for them. Widespread use of this tactic would force lenders to stop lending, or would restrict lending only to those with assets (by, e.g., requiring parent co-signers). Of course, the real answer is lobbying by student loan lenders.
passages: Not every debt may be discharged under every chapter of the Code. Certain taxes owed to Federal, state or local government, student loans, and child support obligations are not dischargeable. (Guaranteed student loans are potentially dischargeable, however, if debtor prevails in a difficult-to-win adversary proceeding against the lender commenced by a complaint to determine dischargeability. Also, the debtor can petition the court for a "financial hardship" discharge, but the grant of such discharges is rare.)
   In the US, it is very difficult to discharge federal or federally guaranteed student loan debt by filing bankruptcy. Unlike most other debts, those student loans may be discharged only if the person seeking discharge establishes specific grounds for discharge under the "Brunner" test, under which the court evaluates three factors:
  
  BULLET::::- If required to repay the loan, the borrower cannot maintain a minimal standard of living;
  
  BULLET::::- The borrower's financial situation is likely to continue for most or all of the repayment period; and
  
  BULLET::::- The borrower has made a good faith effort to repay the student loans.
   BAPCPA amended § 523(a)(8) to broaden the types of educational ("student") loans that cannot be discharged in bankruptcy absent proof of "undue hardship." The nature of the lender is no longer relevant. Thus, even loans from "for-profit" or "non-governmental" entities are not dischargeable.
  
  Section::::Provisions.:Lien avoidance.
   Even if a debtor proves all three elements, a court may permit only a partial discharge of the student loan. Student loan borrowers may benefit from restructuring their payments through a Chapter 13 bankruptcy repayment plan, but few qualify for discharge of part or all of their student loan debt.
  
  Section::::Fraud.
   United States Federal student loans and some private student loans can be discharged in bankruptcy only with a showing of "undue hardship." In contrast to credit card debt, which often can be discharged through bankruptcy proceedings, this option is not generally available for educational loan debt. Additionally, those seeking to discharge their student loan debt must initiate an adversary proceeding, a separate lawsuit within the bankruptcy case where they illustrate the required undue hardship. Many borrowers cannot afford to retain an attorney or the additional litigation costs associated with an adversary proceeding, let alone a bankruptcy case. Further complicating matters, the undue hardship standard varies from jurisdiction to jurisdiction, but is generally difficult to meet, making student loans practically non-dischargeable through bankruptcy. In most circuits discharge depends on meeting three prongs in the "Brunner" test: As noted by the district court, there is very little appellate authority on the definition of "undue hardship" in the context of 11 U.S.C. § 523(a)(8)(B). Based on legislative history and the decisions of other district and bankruptcy courts, the district court adopted a standard for "undue hardship" requiring a three-part showing: (1) that the debtor cannot maintain, based on current income and expenses, a "minimal" standard of living for herself and her dependents if forced to repay the loans; (2) that additional circumstances exist indicating that this state of affairs is likely to persist for a significant portion of the repayment period of the student loans; and (3) that the debtor has made good faith efforts to repay the loans. For the reasons set forth in the district court's order, we adopt this analysis. The first part of this test has been applied frequently as the minimum necessary to establish "undue hardship." See, e.g., Bryant v. Pennsylvania Higher Educ. Assistance Agency (In re Bryant), 72 B.R. 913, 915 (Bankr.E.D.Pa.1987); North Dakota State Bd. of Higher Educ. v. Frech (In re Frech), 62 B.R. 235 (Bankr.D.Minn.1986); Marion v. Pennsylvania Higher Educ. Assistance Agency (In re Marion), 61 B.R. 815 (Bankr.W.D.Pa.1986). Requiring such a showing comports with common sense as well.While federal student loans can be discharged administratively for total and permanent disability, private student loans cannot be discharged outside of bankruptcy.
   One set of empirical data comes from Education Credit Management Corporation, which serviced loans for twenty-five lending agencies and the United States Department of Education; in 2008 it was reported that of 72,000 loans in bankruptcy proceedings, only 276 debtors attempted discharge, and by November 2009 of the 134 resolutions thus far, 29 resulted in total or partial discharge.
   The discharge also does not eliminate certain rights of a creditor to setoff (or "offset") certain mutual debts owed by the creditor to the debtor against certain claims of that creditor against the debtor, where both the debt owed by the creditor and the claim against the debtor arose prior to the commencement of the case.
   A discharge of debts is granted to debtors but can be denied or revoked by the court based on certain misconduct of debtors, including fraudulent actions or failure of a debtor to disclose all assets during a bankruptcy case. Some debts, such as alimony and childsupport, cannot be discharged in bankruptcy, while others, such as student loans, are difficult to discharge and are therefore rarely discharged.
  
  The benefit of the discharge injunction is narrower than (but similar to) the benefit afforded by the automatic stay in bankruptcy.
  
  U.S. law also provides for specialized discharges in bankruptcy (see below).
   The New York Times published an editorial in August 2011 endorsing the return of bankruptcy protections for private student loans in response to the economic downturn and universally increasing tuition at all colleges and graduate institutions.
  
  Since 2005, Bankruptcy reform lead debtors have to take the responsibility of private student loan debt in bankruptcy which can decline debtors’ intention of reducing costly defaults to declare bankruptcy. 
   There are rehabilitation programs designed to help borrowers get out of debt. Rehabilitation is a federally mandated program that gives federal student loan borrowers a way to bring their loans out of default. Rehabilitation can reverse the many negative consequences of defaulting on a student loan, and participation is one of the few rights granted to federal education loan borrowers.
   Some conservative pundits have proposed that colleges limit student loans and share the liability on defaulted student loans.
  
  "The New York Times" published an editorial in 2011 in support of allowing private loans to again be discharged during bankruptcy.
   In the United States, student loans are rarely dischargeable in bankruptcy, and typically lenders provide student loans without requiring security. This stands in contrast to lenders requiring borrowers to have an equity stake in a comparably-sized real estate loan, as described above, secured by both a down payment and a mortgage. An explanation for the willingness of creditors to provide unsecured student loans is that, in a practical sense, American student loans are secured by the borrower's future earnings. This is so since creditors may legally garnish wages when a borrower defaults.
  
  Section::::Effects.
   In the UK student loan entitlements are guaranteed, and are recovered using a means-tested system from the student's future income. Student loans in the UK can not be included in bankruptcy, but do not affect a person's credit rating because the repayments are deducted from salary at source by employers, similar to Income Tax and National Insurance contributions. Many students, however, struggle with commercial debt well after their courses have finished.
  
  Section::::Student loan consolidation.:Australia.
   There are other negative consequences resulting from a defaulted loan. A student who wishes to return to school cannot qualify for federal aid in the United States until satisfactory payment arrangements are made on the defaulted loan or the loan is rehabilitated, a process that can take as long as a full year of on-time payments.
   A review of records in the United States Bankruptcy Court for the Western District of Washington found that 57% of the 115 adversary proceedings reviewed in a 5-year period resulted in partial discharge, through settlement or trial; however, the authors cautioned not to generalize the results of this small sample. 86% involved at least one of the United States Department of Education or the Education Credit Management Corporation, a nonprofit which services loans where the student has declared bankruptcy.
   As with most other types of debt, student debt defaults after a given period of non-response to requests by the school or the lender for information, payment or negotiation. At that point, the debt is turned over to a Student Loan Guarantor or a collection agency.
   Defaulting on student loans can also end in a lawsuit. The government and private lenders can sue in order to collect on loans. There is no time limit on suing to collect on federal student loans, and the borrower can be sued indefinitely. Private student loans, in most cases, are subject to statute of limitations laws depending on the state.
  
  Section::::Getting out of default.
   Under some circumstances, student loan debt can be canceled. For example, if a student attended a school while it closed or if the student was enrolled by means of false claims, they may be able to file defense to repayment paperwork. 
  
  Section::::Repayment and Default.:Leaving the country to evade repayment.
   Federal student loans are less expensive than private student loans. The interest rate of borrowers with federal student loans is nearly equal to the weighted average rate on the former loans while the new interest rate of private loans depends on the one-month London interbank offered rate. Therefore, these two student loans are different in both application and definition. Losses on student loans are extremely low, even when students default, in part because these loans cannot be discharged in bankruptcy unless repaying the loan would create an "undue hardship" for the student borrower and his or her dependents. In 2005, the bankruptcy laws were changed so that private educational loans also could not be readily discharged. Supporters of this change claimed that it would reduce student loan interest rates; critics said it would increase the lenders' profit.
   After the passage of the bankruptcy reform bill of 2005, both federal and private student loans are not discharged during bankruptcy (prior to the passage of this bill, only federal student loans were unable to be discharged). This provided a credit risk free loan for the lender, averaging 7 percent a year. In January 2013, the "Fairness for Struggling Students Act" was unveiled. This bill, if passed, would have allowed private student loans to be discharged in bankruptcy. The bill was referred to the Senate Judiciary Committee where it died.
   In addition, the IRS can take the borrower's income tax refund until the defaulted loan is paid in full. This is a popular way of collecting on loan debt, and the Department of Education collects hundreds of millions of dollars this way.
  
  To object, a written statement must be presented within 65 days of the IRS' notice, and must give evidence of any of the following:
  
  BULLET::::- The loan has been repaid.
  
  BULLET::::- Payments have been made under a negotiated repayment agreement, or a cancellation, deferment or forbearance has been granted.
  
  BULLET::::- The borrower has filed for bankruptcy.
   In 2011, The New York Times published an editorial endorsing the return of bankruptcy protections for private student loans in response to the economic downturn and universally increasing tuition at all colleges and graduate institutions.
  
  A 2014 report from Consumer Financial Protection Bureau (CFPB), shows a rising problem with these types of loans. Borrowers face “auto-default” when cosigner dies or goes bankrupt. The report shows that some lenders demand immediate full repayment upon the death or bankruptcy of their loan cosigner, even when the loan is current and being paid on time.
  
  Section::::Participants.
   Unlike other consumer loans, Congress made student loans, both federal and private, exempt from discharge (cancellation) in the event of a personal bankruptcy, except when repaying the student loan would represent an undue hardship on the borrower and the borrower's dependents. This is a serious restriction that students rarely appreciate when obtaining a student loan.
  
  Financial aid, including loans, may not exceed the cost of attendance.
  
  Section::::Parallels to mortgage lending.
   The rules for total and permanent disability discharge underwent major changes as a result of the Higher Education Opportunity Act of 2008. Loan holders are no longer required to be unable to earn any income, but instead the standard is "substantial gainful activity" (SGA) as a result of disability. The new regulations took effect July 1, 2010. Under further changes that took effect July 1, 2013, if a borrower is determined to be disabled by the Social Security Administration, that determination will be accepted as proof of total and permanent disability if the SSA placed the individual on a five- to seven-year review cycle (the longest currently used by SSA). Effective with discharges on or after January 1, 2018, debt discharged due to the death or total permanent disability of the borrower is no longer treated as taxable income. This provision, part of the Tax Cuts and Jobs Act of 2017, will sunset on December 31, 2025 unless renewed by Congress.
   On January 23, 2006, the Supreme Court, in "Central Virginia Community College v. Katz", declined to apply state sovereign immunity from "Seminole Tribe v. Florida", to defeat a trustee's action under to recover preferential transfers made by a debtor to a state agency. The Court ruled that Article I, section 8, clause 4 of the U.S. Constitution (empowering Congress to establish uniform laws on the subject of bankruptcy) abrogates the state's sovereign immunity in suits to recover preferential payments.
  
  Section::::Social and economic factors.
  