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I'm a bit conflicted on this. With regular bankruptcy the loaner can take possession of the item you bought. With education the bank can't take your degree, kno

I'm a bit conflicted on this. With regular bankruptcy the loaner can take possession of the item you bought. With education the bank can't take your degree, knowledge, network and whatever else you gained from university. I'm not saying this shouldn't be a thing, but it would encourage people with no real property to declare bankruptcy even if they could pay it off.

allisdust 4y ago
Not true for unsecured loans and even for secured loans there is no guarantee that the security provided will cover the loan. Which is why the probability of a default is a variable while giving loans. By removing bankruptcy option, government is encouraging subprime loans in education.
Turing_Machine 4y ago
> With regular bankruptcy the loaner can take possession of the item you bought. If it's worth anything, which it may not be. I'd bet the average amount collected on, say, SBA loans for small businesses is pennies on the dollar, at best. It will be interesting to see what happens with FHA/VA loans when those go massively underwater oh...about a year from now.