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Maybe I just don't understand the drawbacks, but why wouldn't a student then immediately declare bankruptcy after college? They likely have no assets, etc.
by mikeevans 13y ago
Maybe I just don't understand the drawbacks, but why wouldn't a student then immediately declare bankruptcy after college? They likely have no assets, etc.
- danielweber 13y agoIf the student only has (say) $3000 worth of debt, then the student would be stupid to have a bankruptcy on their credit report. But if they had more than (say) $20,000 in debt, that is exactly what they would do. Therefore, no school would let a student get significantly in debt. Therefore, the school would have to lower prices. The fear back in the day was that, without some way of holding students to loans, that the students wouldn't be able to get credit, and college would become a rich person's paradise. I can understand where they were coming from when they were thinking that, but what we've actually gotten seems a much worse disaster than the one they were trying to avoid.