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I rather like the idea of making student debt dischargeable in bankruptcy (not retroactively obviously). Why should borrowers alone face the consequences of the
by jogjayr 8y ago
I rather like the idea of making student debt dischargeable in bankruptcy (not retroactively obviously). Why should borrowers alone face the consequences of their bad decisions? Aren't lenders equally complicit?
I understand that educational loans are essentially unsecured loans. So fine, let them be treated like personal loans and let lenders evaluate their risk accordingly. It'll quickly put an end to letting an 18-year old go into $100k in debt for a liberal arts degree.
- Kephael 8y agoThe government backs the loans and this ends up being a massive subsidy for academia. If loans were priced accordingly, far fewer loans would be issued and there would be fewer students in college, and fewer colleges and universities.
- jogjayr 8y agoColleges and universities might start charging something more reasonable once they see that their students can't take out such large loans. Why exactly does it cost tens of thousands of dollars to deliver a liberal arts education anyway? Otherwise, community colleges prepare students to transfer into year 3 of a 4-year college, at a fraction of the cost. This is a viable option for students who can't afford the full 4-year experience.