Brunner Test in Rhode Island [2026]: First Circuit Undue Hardship Application

Undue Hardship in Rhode Island

Rhode Island is in the 1st Circuit, which blends Brunner with totality-of-the-circumstances flexibility. The three-prong framework supplies structure but courts retain equitable discretion on the "additional circumstances" prong.

Student loans are presumptively non-dischargeable under 11 U.S.C. Section 523(a)(8). A Rhode Island debtor who wants them discharged must file an adversary proceeding inside the bankruptcy case and prove undue hardship under the blended Brunner framework described below.

The First Circuit Framework

Blends Brunner with totality-of-circumstances flexibility. Bronsdon v. ECMC, 435 B.R. 791 (1st Cir. BAP 2010); In re Nash, 446 F.3d 188 (1st Cir. 2006). Partial discharge and equitable considerations are comparatively accessible.

The Brunner three-prong test (where applicable) requires the debtor to prove by a preponderance of the evidence:

Minimal standard of living. The debtor cannot maintain a minimal standard of living for themselves and their dependents if forced to repay the loans under current terms.
Persistence of hardship. Additional circumstances indicate this state of affairs will persist for a significant portion of the repayment period.
Good faith. The debtor has made good-faith efforts to repay -- including enrollment in IDR plans, attempted forbearances, and demonstrated payment history where possible.

See the three-prong test in depth and totality-of-circumstances comparison.

DOJ/DOE Attestation Process (November 2022)

On November 17, 2022, the Department of Justice (Civil Division) and the Department of Education issued joint guidance streamlining federal student loan adversary proceedings. The guidance applies in every federal bankruptcy court, including those in Rhode Island, and has materially increased discharge success rates.

Under the attestation framework:

The debtor completes a standardized attestation form documenting income, expenses, and repayment history.
The DOJ reviews the attestation using objective criteria (below 225% of the federal poverty guideline, inability to repay projected for the future, demonstrated good-faith efforts).
If criteria are met, DOJ recommends not opposing discharge, either in full or in part.
The underlying Brunner or totality analysis is still applied by the bankruptcy judge, but with alignment between debtor and creditor.

The U.S. Trustee's office handling Rhode Island cases processes attestations consistently with this guidance. See DOJ/DOE guidance deep-dive.

Private Student Loans and Rhode Island -- The McDaniel Question

McDaniel v. Navient Solutions, LLC, 973 F.3d 1083 (10th Cir. 2020), narrowed what counts as a "qualified education loan" under 11 U.S.C. Section 523(a)(8)(B). Loans that were not used solely for "qualified higher education expenses" -- including living expenses beyond the cost of attendance, bar study loans, test prep loans, and some direct-to-consumer private loans -- may fall outside Section 523(a)(8)(B) entirely and be dischargeable without proving undue hardship at all.

For Rhode Island debtors with private loans:

Direct-to-consumer (DTC) loans that exceeded the school-certified cost of attendance may be fully dischargeable.
Bar study loans are typically dischargeable under McDaniel/Campbell reasoning.
Mixed-use loans are fact-specific; the creditor bears the burden to prove qualified-loan status.

Even outside the 10th Circuit, bankruptcy courts in Rhode Island have cited McDaniel persuasively. See recent case outcomes.

Income-Driven Repayment and the Good-Faith Prong

For Rhode Island debtors in a Brunner-applying circuit (i.e., not the 8th), the good-faith prong is usually the hardest to meet. Courts expect evidence of:

Enrollment in (or attempted enrollment in) an income-driven repayment plan (SAVE/REPAYE, PAYE, IBR, or ICR).
Forbearances and deferments used when appropriate -- but not as a substitute for actual repayment.
Communication with the loan servicer, including documented payment attempts.
Efforts to maximize income or minimize expenses where realistic.

A Rhode Island debtor at poverty-line income typically has a $0 monthly payment under SAVE. The point of showing IDR enrollment is not that it produced high payments -- it is that the debtor tried. See good-faith requirement explained and persistent effort documentation.

Partial Discharge in Rhode Island

Under In re Saxman, 325 F.3d 1168 (9th Cir. 2003), and similar reasoning adopted in other circuits, bankruptcy courts may grant partial discharge where full discharge is not warranted but some reduction is equitable. In Rhode Island, partial discharge is most accessible in the 1st, 7th, 9th, and (via totality) 8th Circuits; the 4th, 5th, and 6th Circuits treat it more skeptically.

Partial discharge options include: reducing principal, wiping out accrued interest, extending repayment terms, or discharging some loans in full while leaving others. See partial discharge in depth.

Alternatives for Rhode Island Debtors

Before filing an adversary proceeding, every Rhode Island debtor should check whether a non-bankruptcy path fits:

Total and Permanent Disability (TPD) discharge -- administrative, no adversary needed. Available for federal Direct, FFEL, and Perkins loans via SSA/VA/physician certification.
Public Service Loan Forgiveness (PSLF) -- 120 qualifying payments while employed by a qualifying public-sector or nonprofit employer.
Teacher Loan Forgiveness -- up to $17,500 for qualifying teachers in low-income schools after five years.
Borrower Defense to Repayment -- full discharge where the school engaged in misconduct.
Closed School Discharge -- full discharge where the school closed during enrollment or shortly after.

See alternatives to Brunner.

Rhode Island Legal Aid and Clinic Resources

Rhode Island Legal Services; 1st Circuit blended test.

Adversary proceedings typically cost $2,000-$6,000 in attorney fees beyond the base Chapter 7 or 13 representation. Legal aid, law school clinics, and pro bono panels in Rhode Island can reduce or eliminate that cost for eligible debtors. Under 11 U.S.C. Section 329(b), all attorney fees connected to the case (including adversary fees) must be disclosed under Rule 2016(b) and are reviewable for reasonableness.