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This is interesting but I don't think it would work for student debt because it is guaranteed by the Federal Government, thus giving the lender no incentive to
by dkrich 14y ago
This is interesting but I don't think it would work for student debt because it is guaranteed by the Federal Government, thus giving the lender no incentive to sell the debt at a discount.
- anonymoushn 14y agoThis is the main problem I see. It's easy to do this with credit card debt, but there's no point to doing it with credit card debt because the borrower can default with essentially no consequences.
- Retric 14y agoSome people dodge Student loan debt by leaving the country. Think about it, owe 400k and it may seem vary appealing.
- ThomasGokey 14y agoStudent debt is different. Because it is backed by the federal government there is no incentive for private lenders to sell defaulted debt. In fact they end up making even more money off of defaults. There are some student loans that are made outside of the federal government's system, and these can be bought and sold. These are usually made under highly predatory circumstances like for profit scam schools. We are looking at other ways to forgive student debt. I don't know much about it yet so I shouldn't say anything. It might not pan out, but I'm looking into it.