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makes me wonder if student loan default en masse could follow this time.
by andrew_ 5y ago
makes me wonder if student loan default en masse could follow this time.
- chinathrow 5y agoHow would that work? I thought most US based student loan can't be defaulted on.
- sbelskie 5y agoDefaulting just means you have not made required payments for a certain period of time (270 days for student loans), so anyone can default.
- jessaustin 5y agoIt can't be discharged through bankruptcy (thanks Joe!), but neither can we squeeze blood from stone. Debtors who don't have the funds to both eat and make their payments will not make their payments.
- mumblemumble 5y agoI assume that by Joe you mean Joe Biden? Student loans haven't been something you can discharge in bankruptcy since the 1970s. If you want to thank a US president (as opposed to, say, the legislature that actually passes these laws), you should be thanking Gerald.
- FollowingTheDao 5y agoBu Biden said he would change this. And he did not. And in fact he is actively fighting them in court. https://www.washingtonpost.com/education/2022/02/17/biden-student-loans-bankruptcy-dispute/ https://www.washingtonpost.com/education/2022/02/17/biden-st...
- NhanH 5y agoYou can still discharge private student loan in bankruptcy until 2005, when a new bill pass to prohibit it. Joe Biden was one of the Democrats voting for it (as a member of the legislature that passed the law). The GP was probably referring to this
- gizmo686 5y agoThey are probably referring to then Senetor Joe Biden and his support for the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which substantially broadened the set of student loans that could not be discharged in bankruptcy.
- jessaustin 5y agoJoe Biden was a legislator for 38 years. He probably doesn't remember every bill he sponsored, but it's not as though he didn't choose to sponsor them.
- deleted 5y ago[deleted]
- andrew_ 5y agoI'd really like to know why this is getting negged. Student loan debt is a massive number, and if significant numbers of people simply stopped paying, it going to have a major toll.
- namelessoracle 5y agoStudent loan debt has been in de facto default for awhile now in terms of collecting the interest payments. So we already "know" the impact that would have. It also CANT be defaulted in the sense of extinguishing the debt, because the government will just garnish future wages and earnings, including social security checks.
- andrew_ 5y agoInteresting. I wasn't aware it'd been in a state of default. What's a good resource to get up to speed?