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My memory may be faulty, and if it is, someone please correct me. However, I seem to remember a time when School Loans used to be dischargable via bankruptcy.

If I recall, by the late 80’s or early 90’s, it became a routine practice for recent college grads to default on their school loans, and simply file for personal bankruptcy instead. They were young, had no assets, so they didn't care. The problem eventually became so widespread and epidemic that the government had to pass new laws stating that student loans could not be discharged via bankruptcy. Hence the situation we find ourselves in today.

If this law is repealed, look for the loan default problem to return - except young people's sense of entitlement today seems to be even higher that it was back then (if such a thing is possible). Hence, the problem will be much worse this time around.

I am not sure what the solution might be, but knowing human nature nowadays, I am certain that if the bankruptcy law is put back to the way it was before, that college students will once more begin taking advantage of the situation - and student loan defaults will explode all over again.

I went thru a bankruptcy (medical) in 90 and they were NOT dischargeable. However, by going thru BK, I had them paid off by 92.

That’s what I remember but I thought it was the seventies and early 80s when this became an epidemic.

If I recall, by the late 80’s or early 90’s, it became a routine practice for recent college grads to default on their school loans, and simply file for personal bankruptcy instead. They were young, had no assets, so they didn't care. The problem eventually became so widespread and epidemic that the government had to pass new laws stating that student loans could not be discharged via bankruptcy. Hence the situation we find ourselves in today.

I read part of a testimony before congress, or an article on the subject, and this occurrence was actually very rare. It was an urban legend--fomented by the blood-sucking banks who could easily take advantage of students who didn't know their a$$ from a hole in the ground enough to make financial decisions.

There WERE some highly educated professionals (doctors) who did this, but it was rare, too. Turns out most people don't like to have a bankruptcy on their record and did what they could to avoid it. Unfortunately, as evidenced by comments on this thread, college costs have become so high, that it is nearly impossible for a student to work part time or full time to cover the cost. Gone are the days when many of us paid no more than $300-$400 for tuition, school fees, and books. Students are now lucky to purchase a single book for that amount of money.