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Surely every student with loans would be bankrupt on graduation so no one would ever pay?

• JumpCrisscross 8y ago
  > Surely every student with loans would be bankrupt on graduation so no one would ever pay? Student loans are a funny kind of loan. They're unsecured debt given to students with--on average--no assets or income. We certainly went extreme with the "no discharge under any circumstances" threshold. There is no reason to over-correct to the other extreme of "everything is dischargeable at any time." A new chapter of bankruptcy would probably be needed to effectively deal with student debt defaults.
  • astura 8y ago
    How do you propose this working given the fact every student (who isn't from a well off family or didn't get lots of scholarships) comes out of college with near zero assets and lots of debt. Have a X number of year waiting period?
    • JumpCrisscross 8y ago
      > How do you propose this working given the fact every student (who isn't from a well off family or didn't get lots of scholarships) comes out of college with near zero assets and lots of debt Bankruptcy is a court-mediated process. > Have a X number of year waiting period? This would be a necessary first piece. One needs a few years of income data to establish how much someone can pay. After that, I'd argue for % of discretionary income payments (up to a dollar cap) for N years, after which the unpaid balance (both principal and interest) are written off.