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Yeah, if I could borrow $250k+ at the start of my career knowing that I'll never have to repay a penny of it, and the only consequence is that I couldn't get a
by vanniv 7y ago
Yeah, if I could borrow $250k+ at the start of my career knowing that I'll never have to repay a penny of it, and the only consequence is that I couldn't get a mortgage in the first two years out of university...
...why wouldn't I just borrow every cent I can without even intending to pay it back?
- tonetheman 7y agothis .... so much this.
- vanniv 7y agoAll of which, I guess, says that if student loans can be trivially discharged in bankruptcy, then we should expect that non-government loans will quickly go away, and government loans will start to have a ~100% default rate (or this judge's decision won't become universally applicable, or the law will be changed to circumvent it)
- maxerickson 7y agoI doubt they would give you the whole amount up front if it were dischargeable, so your clock is wrong. It might be possible to declare bankruptcy a year or two before graduating still. Not sure what employers would make of it. Maybe they'd like the mercenary attitude.
- toasterlovin 7y ago> I doubt they would give you the whole amount up front if it were dischargeable This is basically the entire point.
- maxerickson 7y agoRight, that's why I pointed it out to the commenter that I replied too, they wrote as if the bankruptcy would start when you took the loan out...
- toasterlovin 7y agoAh, gotcha. Makes sense now.
- vanniv 7y agoGenerally, you don't make payments on student loans until after you graduate. That means you have years to spend the money before you have to worry about refusing to pay
- chrisseaton 7y agoBecause taking on a loan planning to default on it is fraud and you can be prosecuted for that.
- gruez 7y agoAnd how is the prosecution going to prove you intended to default on it?
- chrisseaton 7y agoBy showing that you made no reasonable effort to pay it off. They’ll just ask why didn’t you work and pay it off as normal. What do you think at the moment stops graduates taking out a credit card, blowing 100k on it on holidays and then declaring bankruptcy? The same fraud laws as would stop you from clearly never intending to pay off your student debts.