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Why is student loan debt not dischargable in bankruptcy? Because there isn't a way to take back the knowledge/skills/information learned while in college. If y
by Goronmon 9y ago
Why is student loan debt not dischargable in bankruptcy?
Because there isn't a way to take back the knowledge/skills/information learned while in college. If you default on a home loan, then can take your house. If you default on a car loan, they can take your car.
What can they do when you default on your student loans?
- flukus 9y ago> Because there isn't a way to take back the knowledge/skills/information learned while in college. Time does that anyway, you'd be surprised how much you forget when you don't use it everyday. Plus the knowledge get's stale. A university degree depreciates just like everything else.
- int_19h 9y agoYou can still declare bankruptcy when you don't have the collateral for your car/house loan anymore, though. For example, if your car was totaled, or your house burned down.
- theoracle101 9y agoYes but what you are describing is essentially unsecured debt. The government is guaranteeing your loans, why do you think student loan rates are so much cheaper than credit cards? The price you pay for that guarantee is that you can't declare bankruptcy. The government is propping up this industry and it has some parallels to the US housing before 08 (encouraging lending to subprime homebuyers)