Student loans in bankruptcy
Varies
Can You Write Off Student Loans in Bankruptcy?
Short answer: There's no deduction, but student loans can be discharged in bankruptcy if you prove undue hardship, and debt discharged in bankruptcy isn't taxable income.
Interest you paid before the discharge is still eligible for the student loan interest deduction (up to $2,500).
Records to keep: Keep receipts, statements, and a note of what each cost was for. Compare itemizing to the 2026 standard deduction ($16,100 single / $32,200 joint) before you claim.
Student loans in bankruptcy
Varies
Individuals / Personal Taxes
There's no deduction, but student loans can be discharged in bankruptcy if you prove undue hardship, and debt discharged in bankruptcy isn't taxable income.
Business justification
There's no deduction, but student loans can be discharged in bankruptcy if you prove undue hardship, and debt discharged in bankruptcy isn't taxable income. Interest you paid before the discharge is still eligible for the student loan interest deduction (up to $2,500).
Category
- Personal Tax Deductions