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I agree with this, but there has to be some kind of reasonable time limit where bankruptcy doesn't apply. Otherwise every cunning student will just apply for ba

by generj 10y ago

I agree with this, but there has to be some kind of reasonable time limit where bankruptcy doesn't apply. Otherwise every cunning student will just apply for bankruptcy right after graduation (made very easy because they don't yet have a job and have almost no assets). I'd be OK with bankruptcy ending student debt after a time frame of 5-7 years.

new_hackers 10y ago
Yup, and this is what was happening (AFAIK) and why they added the stipulation that student loans weren't absolved in bankruptcy. Otherwise, why not everyone become a neuro-surgeon? A couple hundred thousand dollars wiped away right after collage, only so they can become paid far beyond reasonable wages afterward and owe nothing.
- brazzledazzle 10y ago
  So it stands to reason that if you create a special class of debt you should have a special class of debt collection. If your income and/or assets are greater than $X then collect. That would keep people from playing the system and keep someone who depends on social security to survive from having their checks garnished. We're so obsessed with stopping cheats in this country we'll cut off our nose to spite our face.
vkou 10y ago
Except that you're setting yourself up for a lot of suffering for the next decade, as your credit rating is destroyed. This cuts you out of a lot of opportunities. Very few people are in a position where they can opt out of having a passable credit rating.
- generj 10y ago
  Absolutely true, but it wouldn't prevent some people from making a bad decision anyways. I'll also note that many student's credit ratings are garbage anyways, or they have no credit history to speak of. So the immediate consequences may be limited, and many people don't fully think through future impacts. These kinds of people also tend to be the kind of people who take on a lot of debt for a non-marketable degree.

by generj 10y ago

new_hackers 10y ago

Yup, and this is what was happening (AFAIK) and why they added the stipulation that student loans weren't absolved in bankruptcy. Otherwise, why not everyone become a neuro-surgeon? A couple hundred thousand dollars wiped away right after collage, only so they can become paid far beyond reasonable wages afterward and owe nothing.

brazzledazzle 10y ago
So it stands to reason that if you create a special class of debt you should have a special class of debt collection. If your income and/or assets are greater than $X then collect. That would keep people from playing the system and keep someone who depends on social security to survive from having their checks garnished. We're so obsessed with stopping cheats in this country we'll cut off our nose to spite our face.

vkou 10y ago

Except that you're setting yourself up for a lot of suffering for the next decade, as your credit rating is destroyed. This cuts you out of a lot of opportunities. Very few people are in a position where they can opt out of having a passable credit rating.

generj 10y ago
Absolutely true, but it wouldn't prevent some people from making a bad decision anyways. I'll also note that many student's credit ratings are garbage anyways, or they have no credit history to speak of. So the immediate consequences may be limited, and many people don't fully think through future impacts. These kinds of people also tend to be the kind of people who take on a lot of debt for a non-marketable degree.