I’ve advocated the “Use existing bankruptcy law - make student loans dischargeable” position for some time.
I’m not happy about it, (having paid for 3 kids college educations) but there IS a standard for insolvency - and just because debt is of one class versus another makes no difference to the insolvency.
It does nobody any good to have a barrista owe $100k that increases at 7-11% per annum. It’s not going to get paid back - regardless of whether it is discharged in bankruptcy.
It also is instructive to note what happens to academia in the wake of such a policy change.
College Campuses especially the most liberal will be decimated, literally destroyed. The activist “professors” that proliferate within such loan-funded liberal paragons of ignorance will be on the street nearly overnight - able to enjoy the basic premises of their supposed beliefs.
University “Think Tanks” will have to think again.
A college education will become meaningful, or it will not be available.
Many colleges and universities will close, consolidate.
They will become less administratively top-heavy.
Children will face the reality of the world BEFORE being indoctrinated, indebted, and impoverished.
Best of all, the cost of a college education will go down dramatically.
There are many more benefits in life to facing reality before you’re so far underwater with student loan debt.
I’ve advocated the “Use existing bankruptcy law - make student loans dischargeable” position for some time
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I completely agree. We seem unable to convince parents and kids to create a business case for student loans, so I think it is necessary to cause the lenders to require one. We wouldn’t loan an 18 year old $50k to start a brake shop without a business plan, but we will loan it to a student without any question of how it will be repaid. You idea would add some discipline to the lender side of the process, which would enforce it on the borrower.