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Student loans are not able to be discharged in bankruptcy, is that right? Assuming so, what will be the likely result if the current situation keeps up for say
by patrickgzill 16y ago
Student loans are not able to be discharged in bankruptcy, is that right? Assuming so, what will be the likely result if the current situation keeps up for say 5 years - no job means no payments on the student loans, and at even a low rate of interest, not making payments on the loan for 5 years will greatly increase the amount due.
Some amount of defaults/resetting will be likely - the question is, who will take the haircut when the loans are not repaid?
- jon_hendry 16y agoThe government, because't the loans are likely underwritten by the government.
- pzxc 16y agoYou mean the citizens, because the government doesn't have any money of its own.