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> This is going to be a problem. Student debt cannot be discharged in bankruptcy, debtors simply garnish wages. I studied in Austria so I'm not too familiar wi
by gst 10y ago
> This is going to be a problem. Student debt cannot be discharged in bankruptcy, debtors simply garnish wages.
I studied in Austria so I'm not too familiar with how student loans in the US work, but as far as I know the Income Based Repayment program limits your monthly payments to a given percentage of your income. You can't discharge those debts, but an upper bound on the monthly payments doesn't sound too bad either.
- metasean 10y agoBut the interest keeps compounding, which means the person is going to be paying a still sizable portion of their income for a significantly longer timeframe. This is money that arguably would be spent on housing, family, and retirement, e.g. things that provide significant societal and personal stability.