Skip to Main Content

Student Financial Services Office Policies:  Bankruptcy

Debts owed to the University of North Florida may not automatically be discharged in Bankruptcy. 


Recent changes in the Bankruptcy Code exempt Educational Loans from discharge regardless of the length of time they have been in repayment.  The change applies to bankruptcies filed after Oct. 17, 2005. This applies to both Chapter 13 and Chapter 7 cases. Upon successful completion of a Chapter 13 plan, any remaining balance will be non-dischargeable.


Under current bankruptcy law, similar to the non-dischargeability of student loans, an educational benefit may also be non-dischargeable.


11 U.S.C. sec. 523(a) (8)of the Bankruptcy Code excepts from discharge debts for:

- an educational benefit overpayment or loan made, insured or guaranteed by governmental unit, or made under any program funded in whole or in part by a governmental unit or non-profit institution, or for an obligation to repay funds received as an educational benefit, scholarship or stipend, unless excepting such debt from discharge under this paragraph will impose an undue hardship on the debtor and the debtor’s dependents.


For additional information, questions or concerns, please contact us