4 ms·
This doesn’t sound like a solution at all. Some of these $50k loans have over an additional $100k in interest and penalties. So, this would not help. Make th
by dillonmckay 8y ago
This doesn’t sound like a solution at all.
Some of these $50k loans have over an additional $100k in interest and penalties. So, this would not help.
Make the debt dischargeable under bankruptcy, and the market will correct itself.
Let the borrower’s credit take the hit, not the taxpayers.
- wang_li 8y agoThere's no penalties unless they're not paying in which case this is a different problem than student loan debt in general. Another issue with this is that the vast majority of students hold way less than $50k in debt. This would help out people who either will be earning substantial incomes, e.g. physicians, or who used student loans to subsidize their lifestyle well beyond their school expenses (this might include living in New York City/San Francisco for four years without having any income.) Making student debt dischargeable via bankruptcy would eliminate student loans all together.
- dillonmckay 8y agoThere are a significant number of instances where the loan payer has been making payments, but not to the proper entity. The amount paid cannot be recovered and does not apply to the loan. And, eliminating loans all together would bring tuition prices back to earth.