Continuing the trend of discharging student loan debt in the Eighth Circuit, Judge Shon Hastings, sitting special designation for the Bankruptcy Court for the District of Nebraska, discharged $89,525.00 of student loan debt of the Debtor, Ms. Mudd noting that Debtor met her “rigorous” burden of establishing undue hardship by a preponderance of the evidence.
Analyzing the debtor’s undue hardship claim, the Court examined the unique facts and circumstances of the case and particularly assessed: (1) the Debtor’s past, present, and reasonably reliable future financial resources; (2) a calculation of the reasonable living expenses of the Debtor and her dependents; and (3) any other relevant facts and circumstances surrounding the case utilizing a totality-of-circumstances test.
