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The bankruptcy exception is the root of the problem. "the Bankruptcy Reform Act of 1978". https://info.legalzoom.com/did-laws-effect-preventing-bankruptcy-stud
by breck 7y ago
The bankruptcy exception is the root of the problem.
"the Bankruptcy Reform Act of 1978". https://info.legalzoom.com/did-laws-effect-preventing-bankruptcy-student-loans-26426.html https://info.legalzoom.com/did-laws-effect-preventing-bankru....
Price of college since then: http://blog.unibulmerchantservices.com/wp-content/uploads/2012/09/The-State-of-the-Student-Loan-Debt-3.png http://blog.unibulmerchantservices.com/wp-content/uploads/20...
- bumby 7y agoI don't know if your links support that claim. Or, at least I could use help getting from the bankruptcy law change to a systemic rise in education costs. It doesn't seem to follow that an inability to discharge debt will lead a college to continually increase tuition costs. By the time the discharging of debt comes into play, the college is mostly out of the picture. Help me understand how that incentivizes a school to increase tuition. If anything, it seems like it would drive the cost down as it increases the risk to the borrower, incentivizing the borrower against taking excessive loans. It does however seem to make better sense that an over supply of loans will allow colleges to increase tuition.