4 ms·
lol. for the 50 years prior to the law change (~2007) people weren't declaring bankruptcy after college to avoid the debt - but of course the debt was a reasona
by johnmarcus 9y ago
lol. for the 50 years prior to the law change (~2007) people weren't declaring bankruptcy after college to avoid the debt - but of course the debt was a reasonable amount back then compared to income and other debts. It's not that strange tuition has close to doubled after 2007, while only increasing near inflation before.
- treyfitty 9y agoAlso, (I'm speculating here, since I wasn't alive back then) but bankruptcy was very stigmatized. I won't know the extent, but the way my parents talk about it, bankruptcy just didn't seem like an option. They say it was akin to paying a vet to euthanize your dog rather than suffocating it- it's cheaper one way, but the outcome is the same. It's easy to be "rational" as armchair economists, but social norms and pride are a very important driver. It's what baffles real economists when they gripe "our models would work, if the world were rational!"