I do see these student loans as predatory. Name one loan you can get without proving credit worthiness and ability to pay?
Under duress? Good question/perspective. Parents pushing kids to go to college when many have no business being in college. They would have been better off in a trade.
The loans cannot be written off or forgiven even in bankruptcy in most cases.
Colleges saw a gravy train of government money at the expense and ignorance of young adults.
Who should pay the debt back if bailed out? The colleges.
Gotta get the entitled little leech outta da HOUSE!
The student loan program was designed to prop up a swollen higher education industry that had grown rapidly following WWII due to two things: The GI Bill allowed a lot of people who otherwise probably wouldn’t have gone to college to do so, then the draft during the Vietnam War saw many “casual students” enter colleges for draft deferments (think “Animal House”). Colleges struggled with the post-draft world, and the government decided they were “too big to fail”.
Even the loan forgiveness (if it gets through the courts) is designed to prop them up, by encouraging students to borrow again. In terms of the borrowers, the forgiveness won’t improve all that much for them; so many have borrowed so much that the amount forgiven isn’t a big help.
Who should pay the debt back if bailed out?
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I agree with everything you say. The only solution as I see it is what kids are doing. Refuse to pay. Banks can initiate what all creditors can, but ultimately the Government has to pay banks and bowerer has crappy credit score because you are correct. One cannot use bankruptcy to get rid of student loan debt.
Nobody in power thought this through.
I went to law school and we were not supposed to work. I sold commercial printing, worked in law library and clerked for best and busiest professor in state.
Grades may have suffered, but cofeve.
The Biden administration just last week just made student loans a bit easier to discharge in bankruptcy. (Students can file an adversary and claim financial hardship, and Biden just lowered the standards to qualify for that including “trying” to repay the loan.)