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>Most notably, the inability to discharge school debt in bankruptcy since 2005 may have had strong effects. >That last legal change remains bewildering to me.
by kryogen1c 7y ago
>Most notably, the inability to discharge school debt in bankruptcy since 2005 may have had strong effects.
>That last legal change remains bewildering to me.
I have done no research on the matter, but my parents told me that doctors would go to school on loan for 7+ years, start a practice, and discharge all their loan debt through bankruptcy.
- sanj 7y agoStudent loans typically cannot be discharged through bankruptcy: https://www.creditkarma.com/advice/i/student-loans-in-bankruptcy/ https://www.creditkarma.com/advice/i/student-loans-in-bankru...
- sokoloff 7y agoPrior to the law change it was much more common to get them discharged in bankruptcy. That’s why the law was changed.
- brownbat 7y agoInteresting... that led me to this article: https://www.savingforcollege.com/article/history-of-student-loans-bankruptcy-discharge https://www.savingforcollege.com/article/history-of-student-... It's skeptical of those claims of abuse that seemed to originate in Congress, but nonetheless discusses some of the other historical approaches to solve for that, such as requiring a 5-7 year waiting period for bankruptcy after graduation. I think rayiner added some compelling points above too, income based repayment may be a substitute here to solve for this issue while preventing abuse.