A new study finds more distressed student-loan borrowers are successfully shedding debt through a simplified bankruptcy pathway, and researchers say the trend could expand if more eligible borrowers use the process. The study highlights procedural reforms and legal strategies that lower the bar for discharge in Chapter 7 and streamlined bankruptcy filings, producing relief for borrowers who previously faced near-impossible standards. The findings have immediate implications for university financial‑aid offices, policy teams and legal clinics advising borrowers on debt hygiene and institutional default risks. Lawmakers and higher‑ed finance officers may face renewed pressure to clarify how bankruptcy outcomes affect institutional revenue and student retention.