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To: Erasmus

student loans were dischargable in bankruptcy.

The problem is that non-dischargability has created a “worthless degree” industry.

What is needed is a non-dischargability window. If after 5 years there is no viable job openings, THEN loans become dischargable.

Remember some states offer STUDENT LOAN forgivness programs for every year you work in the government.

This would also be a way to deal with runaway university costs. Since universities have no risk for basket weaving degrees, they can charge as much as possible based on just issuing a degree.


44 posted on 05/31/2012 8:00:51 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: longtermmemmory
“If after 5 years there is no viable job openings, THEN loans become dischargable.”

This would make sense if the debt were dischargeable to the university that awarded the worthless degree. Otherwise, it would further incentivize students to major in (and universities to offer) worthless degree programs.

49 posted on 05/31/2012 8:16:52 AM PDT by riverdawg
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