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If student loans were dischargable in bankruptcy, why wouldn't everyone go through bankrupcy proceedings after graduation? If you finance education with debt, y
by ac29 8y ago
If student loans were dischargable in bankruptcy, why wouldn't everyone go through bankrupcy proceedings after graduation? If you finance education with debt, you're virtually guaranteed to graduate with a negative net worth, and no real tangible assets worth seizing.
Income-based repayment plans already exist, limiting your payments to 10% of discretionary income, with full forgiveness after 20-25 years if any balance remains. "Servicing that debt for the rest of your life" is not a thing.
- anonymous5133 8y agoYou could always have them bankrutable and have strong anti-fraud rules. But i think overall it is a bad idea. It is better to just have percentage income repayment rather than bankruptcy. No doubt about it if student loans were bankruptable then it would be ripe with fraud.
- derekp7 8y agoStudent loans discharged through bankruptcy should also include repossession of your degree -- that is, make it criminal fraud to represent your degree to any employer upon bankruptcy.
- deleted 8y ago[deleted]