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At which point nobody would ever give out student loans anymore, and bankruptcy would be the logical choice, even for those who can afford college. And then of

At which point nobody would ever give out student loans anymore, and bankruptcy would be the logical choice, even for those who can afford college. And then of course every single generation from now on will ask for student loan forgiveness. Unless it was paid for by the the government. In which case colleges will keep 10xing prices (as they already did in the last generation), for a subpar education, and have taxpayers foot the bill. Soon people will be asking for autoloan forgiveness. At a certain point, if colleges are making enough off of students from taxpayers, they will be incentivized to eventually start offering perks to students to come to the college, like kickbacks, automatic 4.0 for 4 years of partying paid for by taxes. Or maybe more than 4 years.

mywittyname 6y ago
> At which point nobody would ever give out student loans anymore, and bankruptcy would be the logical choice, even for those who can afford college. I bet they would. This is a completely solveable problem without going to the extreme of "no bankruptcy ever." Make bankruptcy contingent upon working for one year per year of schooling. If you still don't have a job that pays well enough to cover your loans and living expenses, then bankruptcy is totally appropriate. Doctors and lawyers won't be eligible until well into their career. That prevents people from immediately declaring bankruptcy. Also, bankruptcy sucks a lot more now than it did in the 70s when this policy was put into place. Bankruptcy now prevents you from renting apartments, buying cars/houses, or getting certain jobs. Anyone declaring bankruptcy after college is looking at being in their 30s before they become truly financially independent. I can't think of a worse system than what we have now. Bankruptcy is a really important component of a functioning financial system, and, IMHO, the lack of bankruptcy for student loans is one of the primary drivers of excessive student loan debt.

mywittyname 6y ago

> At which point nobody would ever give out student loans anymore, and bankruptcy would be the logical choice, even for those who can afford college. I bet they would. This is a completely solveable problem without going to the extreme of "no bankruptcy ever." Make bankruptcy contingent upon working for one year per year of schooling. If you still don't have a job that pays well enough to cover your loans and living expenses, then bankruptcy is totally appropriate. Doctors and lawyers won't be eligible until well into their career. That prevents people from immediately declaring bankruptcy. Also, bankruptcy sucks a lot more now than it did in the 70s when this policy was put into place. Bankruptcy now prevents you from renting apartments, buying cars/houses, or getting certain jobs. Anyone declaring bankruptcy after college is looking at being in their 30s before they become truly financially independent. I can't think of a worse system than what we have now. Bankruptcy is a really important component of a functioning financial system, and, IMHO, the lack of bankruptcy for student loans is one of the primary drivers of excessive student loan debt.