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Is there a reason why student debt and not other kinds of debt (e.g. credit card)? Also, how does the DMV know what someone’s debt history is?
by siruncledrew 8y ago
Is there a reason why student debt and not other kinds of debt (e.g. credit card)?
Also, how does the DMV know what someone’s debt history is?
- freedomben 8y agoYes, because the government took over most student loans a few years ago[1], and they make the rules (and want you to pay). [1] https://www.sfgate.com/business/networth/article/Feds-take-over-student-loan-program-from-banks-3193888.php https://www.sfgate.com/business/networth/article/Feds-take-o...
- gwright 8y agoAs a taxpayer, I want you to pay also. I also want the government out of the educational loan business and think that some of the financial risk should be borne by the educational institutions. Making educational loans dischargeable in bankruptcy sounds reasonable on the surface but it problematic when you consider that a newly minted college graduate basically has no assets. Allowing the loan to be dischargeable would encourage graduates to immediately declare bankruptcy to get rid of their student loans. Not sure what the solution is there other than not making the risky loan in the first place.
- aperrien 8y agoMaybe make that type of debt dischargeable in 14 years, rather than 7? Or maybe make the clock on bankruptcy start ticking directly after graduation?
- nickthemagicman 8y agoThat's how it used to be actually.
- duxup 8y agoYeah for a college graduate bankruptcy would seem like a pretty quick solution.
- learc83 8y agoThe federal government took over student loan financing, not state governments. The federal government doesn't run state DMVs, and they don't make rules about suspending state licenses. And the OP is mistaken about 21 states suspending driver's licenses. Also the Federal government used to guarantee the debt. Now they finance it directly. They were always the ones on the hook.