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The lender takes Bob's business and Jim's house. How is the lender going to take Dave's degree? Dave is the only one of the three who could keep the asset afte
by leereeves 5y ago
The lender takes Bob's business and Jim's house. How is the lender going to take Dave's degree?
Dave is the only one of the three who could keep the asset after declaring bankruptcy, if that were allowed.
- Turing_Machine 5y agoIn this scenario, Dave's degree is likely worth little or nothing, so I'm skeptical that allowing him to keep it represents any kind of real advantage.
- leereeves 5y agoBut laws aren't made only for this scenario. If student loans were dischargeable in bankruptcy, the financially optimal decision would be to borrow as much as possible while in school, then declare bankruptcy immediately after graduation. And if you would suggest that the bankruptcy court should consider the value of the degree, I would respond that the appropriate time for that is before lending the money.
- Turing_Machine 5y ago> If student loans were dischargeable in bankruptcy, the financially optimal decision would be to borrow as much as possible while in school, then declare bankruptcy immediately after graduation. Bankruptcies stay on your credit report for seven years. That doesn't sound particularly "financially optimal" to me, or likely to anyone else.