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The problem with dischargeable student loans is it incentives people to follow the most rational choice. Accrue a spectacular amount of debt, get your degree, d
by reducesuffering 5y ago
The problem with dischargeable student loans is it incentives people to follow the most rational choice. Accrue a spectacular amount of debt, get your degree, declare bankruptcy and discharge it. You can buy a house in 7 years when all those earnings you saved from not paying the debt adds up.
Loaning to people with nothing to lose is going to look like 15% interest rates.
- a-dub 5y agoso the banks stop making those loans and as a result tuition stops climbing. as long as those loans are plentiful and uncapped, the upper bound on tuition remains so as well.