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Treatment of student loans in bankruptcy not limited to government loans. The clause makes Lambda appear less attractive so not clear why it would be included.
by pbreit 5y ago
Treatment of student loans in bankruptcy not limited to government loans.
The clause makes Lambda appear less attractive so not clear why it would be included.
Would be nice to hear Lambda’s side.
- dragonwriter 5y ago> The clause makes Lambda appear less attractive so not clear why it would be included. It’s designed to dissuade people from seeking bankruptcy to discharge the debt.
- pbreit 5y agoI doubt it. Who would seek bankruptcy for 17% of their salary? And it also make Lambds FAR more unattractive.
- kelnos 5y agoThe problem is if you can't get a job above a certain salary threshold. While Lambda's non-CA contracts allow for discharging the debt after 5 years of no job or low enough salary, it seems their contract for CA students does not allow for discharging the debt, ever. Regardless, people don't necessarily go into bankruptcy over a single loan. It could be the combination of credit card debt, a mortgage, a car loan, plus the Lambda loan that puts them over the edge.