Ascent Takes Industry-Leading Stance, Offers Clear Path to Bankruptcy Discharge to New Student Loan Customers

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Jun 01, 2023, 06:00 ET

SAN DIEGO, June 1, 2023 /PRNewswire/ -- Ascent, a leader in outcomes-based lending and student success, announces today that beginning June 5, 2023, all new private education loans originated by Ascent will be eligible for discharge in bankruptcy after five years without the need to demonstrate an 'undue hardship.' The new policy will provide much-needed relief for customers who may struggle with private education loan debt.

"Every customer should have the opportunity to have a fresh start, including those who have taken on student loan debt and subsequently experience financial setbacks," said Chairman and Chief Executive Officer of Ascent Ken Ruggiero. "Life can be unpredictable, and we don't need to wait for legislation to do the right thing. We are proactively taking this step to ensure our customers are protected in the event of financial hardship."

Under current bankruptcy law, many private student loans can be much more difficult to discharge than other types of unsecured debt; often requiring extra filings and satisfaction of a more difficult test for relief (the "undue hardship" standard). According to Duke Law Journal, each year, 250,000 student loan debtors file for bankruptcy, yet only 0.1% succeed. Ascent believes it is time for change and is the first private student loan provider to proactively offer a clear path to bankruptcy discharge debt relief. New customers who file for bankruptcy after five years will be able to more easily discharge their Ascent undergraduate and graduate education loans if certain conditions are met.

"We are changing the way people plan, pay, and succeed in school, and we are staying true to that vision," said Ruggiero. "We are choosing to act now because we feel strongly that students and families should not be left out of bankruptcy provisions."

To read more about the changes Ascent is making related to bankruptcy discharge, visit College Loans FAQ.

About Ascent

Ascent is the leading provider of innovative financial products and student support services that enable more students to access education and achieve academic and economic success. We are obsessed with driving positive student outcomes. Everything Ascent offers is designed with the best-in-class teams and technology to increase every student's ability to plan, pay, and succeed. For more information, visit www.ascentfunding.com.

SOURCE Ascent Funding