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Or repeal the Clinton-era law that made student loan debt non-dischargeable in bankruptcy. In that way, potential lenders would have incentive to determine abil

• gruez 5y ago
  >would have incentive to determine ability to repay. It's a mixed bag. On one hand it should decrease costs and incentivize students into choosing better career plans (ie. not going to college just because), but it will also mean disadvantaged students won't be able to attend because their projected credit risk is so high.
  • washadjeffmad 5y ago
    The problem that law was meant to address was that most of the debt being discharged came from a relatively small pool of students who attended very expensive or prestigious schools. If they had set a limit for discharge to the value of the median cost of tuition, it might have prevented the runaway train of inflated costs in the education and perhaps even medical sector, outside of what was caused by malpractice insurance rates in the 70s. Also, individualizing risk to the students irrespective of degree choices and economics without dutifully notifying students isn't ethical behavior, especially when they are responsible for the magnitude of the risk by not controlling costs or advocating for the value of the students they graduate.