Federal student education loans are dischargeable from inside the bankruptcy proceeding merely based on excessive hardship (a tight simple due to the fact interpreted from the process of law). Financial institutions been employed by hard to foster new misconception that the exact same fundamental relates to most of the individual college loans. See, elizabeth.g., Pupil Debtor Protection Cardiovascular system, Morally Broke: The way the Student loan World Stole a Generation’s Straight to Obligations Save () ; Page out-of Senators Durbin, Brown, Whitehouse, and you may Warren so you can CFPB Manager Chopra () .