True or False: A student can regain eligibility by having a defaulted loan discharged through bankruptcy.

A student can regain eligibility by having a defaulted loan discharged through bankruptcy, making the statement true. When a borrower files for bankruptcy and successfully has their loans discharged, it means that the financial obligation to repay those loans has been eliminated. As a result, the student is no longer considered in default, which allows them to regain eligibility for federal student aid.

This process can be critical for students seeking to pursue their education after experiencing financial difficulties. Discharging a loan in bankruptcy can clear the default status, enabling them to apply for federal student aid once again and continue their educational journey without the burden of past defaults.

Other options may imply conditions such as the timing of the bankruptcy or the need for financial hardship, which could misrepresent the general principle that a discharge in bankruptcy effectively cancels the default status of student loans. While individual situations may vary, the overarching rule is that a discharge from bankruptcy allows a borrower to restore their eligibility.