Bankruptcy is the obvious solution for those who can’t pay their debts. There’s no reason student loans shouldn’t be eligible for bankruptcy. My guess, that would require legislation.
I lived like a hobo while in college. My stuff fit in a back pack. I thoroughly resent paying the loans of what I call “Starbucks students”.
If you allow student loans to be eligible for bankruptcy, then anyone who doesn’t max out on those loans would be seen as a sucker. Get your four-year degree. Go on to graduate school. Keep on borrowing. Don’t take any part-time jobs. Live well on the loans. Then declare bankruptcy.
Sure, that would hurt your credit rating for seven to ten years. But that beats paying those huge loans back.
Biden is the reason student loans current cannot be included in bankruptcy. He has probably forgotten that.
There is a good reason by it’s able to be discharged. It would be a moral hazard., ie one could rack up debt and get your medical or law degree then just not get that first job until you go through bankruptcy. They do a six-month look back. Voila’. Free medical or law degree. Make sense now?