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I'm saying why would you extend a massive loan to someone who is broke, has no credit, and can immediately discharge the debt. They could and many of them woul
by pfisch 9y ago
I'm saying why would you extend a massive loan to someone who is broke, has no credit, and can immediately discharge the debt. They could and many of them would immediately discharge the entire balance of the loan upon graduation by declaring bankruptcy.
They don't offer 40k+ loans to people with no credit at any rate.
- hectormalot 9y agoThere are different ways to do that by redefining the way bankruptcy works. E.g. Personal bankruptcy could result in 2-3 years of handing over most of your income to the state (which distributes across the original loan providers), expect any major assets to be liquidated (e.g. Your house), before you're considered debt free.
- pfisch 9y agoIf you just graduated from college with no money and debt how could you have a house? Also that is currently how bankruptcy works anyway. >Personal bankruptcy could result in 2-3 years of handing over most of your income to the state (which distributes across the original loan providers) That is even worse than how bankruptcy works right now for most debts. There already is loan forgiveness after so many years for student loans. Also even if they did offer some faster path to discharging student debt the interest rate on the loans would go up to handle the increased loss from defaults. That would not really make the situation better either.
- alphaalpha101 9y agoGood. That should reduce the unreasonably high (and mostly fake) cost of tertiary education pretty quickly.