Citation Codes Equivalent Citations citation codes Docket Number No. B-78-390 Judges TREVETHAN, Bankruptcy Judge Acts Education — Higher Education Resources And Student Assistance — Student Assistance — Federal Family Education Loan Program — Repayment By Secretary Of Loans Of Bankrupt, Deceased, Or Disabled Borrowers; Treatment Of Borrowers Attending Schools That Fail To Provide A Refund, Attending Closed Schools, Or Falsely Certified As Eligible To Borrow See more information ... Smart Summary Please sign up to generate summary. IN RE MATTHEWS. Bankrupts — Debts Not Affected by Discharge — Student Loans — Hardship — Repealer TREVETHAN, Bankruptcy Judge A bankrupt's federally insured student loan is a dischargeable debt where payment from future income or other wealth would impose an undue hardship on the debtor or his dependents. It is provided by 20 U.S.C. § 1087-3 that federally insured student loans are dischargeable in bankruptcy only after five years from the commencement of repayment or sooner if the court finds that repayment would create an undue hardship. The bankrupt contends that her loan is dischargeable since repayment would create a hardship and since 20 U.S.C. § 1087-3 was repealed by the Bankruptcy Reform Act of 1978 (P. L. 95-598). The bankrupt has a degree in social work; however, she has not been able to hold down a regular job. She supports herself and her daughter who is ill. In determining undue hardship the court must consider: (1) if the debtor has any accumulated wealth or any reasonable prospects of acquiring any, (2) what the debtor's chances are of obtaining and retaining study employment and what income can be expected, (3) the amount the debtor will need to maintain a minimal standard of living, and (4) if there would be anything left from the estimated income to allow the bankrupt to make some payments on the loan without reducing what is needed to live on. Clearly the bankrupt has no wealth and her employment record shows that not only will her future income be modest but that she is unable to hold a job for a minilength of time. Thus, what she can hope to earn will at best be enough for a minimal substance. Consequently, this case qualifies as one under the hardship exception. While this is sufficient to resolve the case without reference to the bankrupt's second contention that 20 U.S.C. § 1087-3 was repealed, the court decided that this question should not be avoided. Section 523(a)(8) of the new Bankruptcy Act is an expansion of 20 U.S.C. § 1087-3. The basic effective date of the new Act is October 1, 1979. However, Section 402(d) of Title IV of the Bankruptcy Reform Act provides that amendments made by various sections of the Reform Act take effect on the enactment date of the Reform Act. Among these is the repeal of 20 U.S.C. § 1087-3 by section 317 of Title III of the Reform Act. Thus, 20 U.S.C. § 1087-3 was repealed on the date the Reform Act was signed into law, November 6, 1978. Thus, through an apparent oversight in drafting the Bankruptcy Reform Act, student loans are again dischargeable until October 1, 1979 when the new Act becomes effective and the stronger version of 20 U.S.C. § 1087-3 which is included in the Reform Act becomes effective. See Sec. 17a [§ 523] at ¶ 9226.