U.S. Supreme Court Upholds Discharge of Student Loan Debt

On March 23, 2010, the United States Supreme Court (the "Supreme Court") unanimously upheld the decision by the Ninth Circuit Court of Appeals allowing the discharge of student loan debt without a finding of "undue hardship" as required by applicable law. This Stroock Special Bulletin provides an overview of the decision, United Student Aid Funds, Inc v. Espinosa.  Although, at first blush, the outcome of this case may appear to have broad implications, the Supreme Court's opinion was based on, and limited to, the unique facts of the case.  Therefore, the decision likely will have limited impact for others seeking to discharge their student loans.