Is an outstanding student loan discharged in a bankruptcy proceeding? ANSWER: Probably not. 11 USC sec. 523(a)(8). Not unless it first became due five years before the date of the filing of the petition; or if excepting the debt from discharge will impose an undue hardship on the debtor.

STATE OF ARKANSAS OFFICE OF THE ATTORNEY GENERAL JUSTICE BUILDING, LITTLE ROCK 72201 STEVE CLARK (501) 371-2007 ATTORNEY GEQPAATON NO. 85-116 May 28, 1985 Susan Elliott, Accounting Supervisor we By Garland County Community College No. 1 College Drive Hot Springs, Arkansas 71913-9L20 Dear Ms. Elliott: This is in response to your request wherein you posed the following inquiry: Whether an outstanding student loan of a former student whose debt has been discharged under the Bankruptcy Reform Act of 1978 is discharged thereunder? . ~ For the following reasons, it is the opinion of this Office that the answer to your question is no. Section 11 uscs § 523 (a)(8) excepts from discharge under the Bankruptcy Reform Act of 1978 the following: (a) A discharge under section 727, 1141, or 1328(b) of this title |11 USCS § 724, 1141, or 1328(b)] does not discharge an individual debtor from any debt-- kK ke kk (8) to a governmental unit, or a nonprofit institution of higher education, for an educational loan, unless~- (A) such loan first became due before five years before the date of the filing of the petition; or (B) excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor's dependents; Assuming that the particular student loan in question does not meet the provisions of either (8){A) or (B), the debt in question is not discharged and can still be collected by your institution. This opinion, which I hereby approve, was prepared by Assistant Attorney General C. Randy McNair, IIT. Attorney General