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On the other hand, this sort of needs to exist on some level for two reasons: 1. If you go bankrupt, most stuff can be taken away if you can't pay for it. I ca

On the other hand, this sort of needs to exist on some level for two reasons: 1. If you go bankrupt, most stuff can be taken away if you can't pay for it. I can take your car, house, etc, but I can't take you education. You still have the full and complete value of that, so I'm not sure it's obvious that bankruptcy should remove the debt. 2. When you graduate, you typically haven't really got any money yet. It would be very easy for recent grads to just go bankrupt before they start accumulating wealth, and then go on with their lives without the loan debt.

painfulpox 5y ago
You should look up bankruptcy laws. They can probably take your house, but oftentimes debtors reaffirm their mortgage to avoid that scenario. You can keep one car used as transportation to and from work, and like 90% of your personal property unless you were already loaded. It really only forces you to sell off assets. You have to meet specific discretionary income to debt forumulae to apply, which locks a lot of people out of bankruptcy as an option. Your second point is fair, though. That's why student debt shouldn't be a thing.
legerdemain 5y ago
The goal of bankruptcy laws is not to rob you blind, but to find a mutually acceptable way out of a bad situation. At least in the US, most bankruptcy is civil bankruptcy. There's no element of criminal justice at play. It's about what's practical, not what's fair. It shouldn't need to be said, and yet it appears that it does, that bankruptcy is not without consequences for me, even if you fail to rob me blind in the process. A bankruptcy will limit my ability to rent an apartment, get a car loan, or win certain jobs. There is no story of people scamming bankruptcy in the US, not even in the recent past when educational debt was still dischargeable.

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On the other hand, this sort of needs to exist on some level for two reasons: 1. If you go bankrupt, most stuff can be taken away if you can't pay for it. I ca

by joebob42 5y ago

painfulpox 5y ago
You should look up bankruptcy laws. They can probably take your house, but oftentimes debtors reaffirm their mortgage to avoid that scenario. You can keep one car used as transportation to and from work, and like 90% of your personal property unless you were already loaded. It really only forces you to sell off assets. You have to meet specific discretionary income to debt forumulae to apply, which locks a lot of people out of bankruptcy as an option. Your second point is fair, though. That's why student debt shouldn't be a thing.
legerdemain 5y ago
The goal of bankruptcy laws is not to rob you blind, but to find a mutually acceptable way out of a bad situation. At least in the US, most bankruptcy is civil bankruptcy. There's no element of criminal justice at play. It's about what's practical, not what's fair. It shouldn't need to be said, and yet it appears that it does, that bankruptcy is not without consequences for me, even if you fail to rob me blind in the process. A bankruptcy will limit my ability to rent an apartment, get a car loan, or win certain jobs. There is no story of people scamming bankruptcy in the US, not even in the recent past when educational debt was still dischargeable.