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Except that student loans can't be abandoned even if you declare bankruptcy. That one little factor makes them some of the worst loans imaginable in terms of lo
by entropicdrifter 7y ago
Except that student loans can't be abandoned even if you declare bankruptcy. That one little factor makes them some of the worst loans imaginable in terms of long-term prospects.
- notus 7y agoStill not worse than triple digit interest rates
- godzillabrennus 7y agoThose unpaid predatory loans fall off your credit report after about a decade. Student loans are forever.
- deleted 7y ago[deleted]
- chasd00 7y agothe tradeoff is insanely low interest rates. Without the federal backstop student loans would have the interest rates of credit cards because as soon as new graduates get into the workforce, can't find a job, they'll file for bankruptcy to get out of the loan. Managing that risk without a backstop means incredibly high interest rate to cover for the losses of loans lost in bankruptcy.
- deleted 7y ago[deleted]
- dsfyu404ed 7y agoStudent loans didn't have those kinds of interest rates back when they could be discharged in bankruptcy 20+yr ago. Why would they now?
- mrguyorama 7y agoThe downside/risk to the lender is about 10x higher per loan than it was 20+ years ago
- deleted 7y ago[deleted]