This educational guide is based on the linked primary sources. It is not a Court publication, is not affiliated with the Court, and is not legal advice.
In brief
Overview
United Student Aid Funds Inc. v. Francisco J. Espinosa concerns whether student loan debt can be discharged in bankruptcy.
According to United Student Aid Funds, Inc., according to United Student Aid Funds, Inc., the petitioner argues that student loans are a subset of non‑dischargeable debt, and that the exception is self‑executing unless the debtor proves undue hardship to the debtor and dependents.
Background and question before the Court
The legal question presented is whether student loans fall within the non‑dischargeable category of 11 U.S.C. § 523(c) and therefore are not dischargeable except upon a showing of undue hardship.
What each side argues
Petitioner (United Student Aid Funds, Inc.)
According to United Student Aid Funds, Inc., according to United Student Aid Funds, Inc., student loans are a subset of non‑dischargeable debt; the exception is self‑executing unless the debtor proves that repayment will cause an undue hardship to the debtor and the debtor’s dependents.
What happened at oral argument
What the Court decided
Why it matters
If the Ninth Circuit’s judgment were affirmed, every Chapter 13 debtor with a student loan would have to include a specific provision in the repayment plan to avoid discharge, affecting a large number of debtors.
The discharge order is the ultimate goal of bankruptcy, but only Congress can determine which debts are dischargeable.
Terms to know
No glossary terms are available for this guide.
Primary sources
Read the source materials on the official site or open the immutable repository copy used for this guide.
- 657f8aa457adf333af16-r1-cc53f7fbb2bf059d.pdforal argument transcript
Guide generated September 23, 2026. Automated validation accepted this version.