- The Biden administration announced on Thursday updated guidelines that will make it easier for those struggling with their student debt to discharge it in bankruptcy.
- Around 250,000 student loan debtors file for bankruptcy each year, but fewer than 300 walk away from their education debt in the proceeding, according to research published in the Duke Law Journal in December 2020.
Not being able to cancel them in BK was the way to make slaves of those who go to college having to borrow money.
Need to add we see all the political statements.
Remember, the US Congress passes the laws not the Executive Branch.
Another words, don't jump off the bridge without a bungee cord
Remember, the US Congress passes the laws not the Executive Branch.
Another words, don't jump off the bridge without a bungee cord
@gdale6 wrote:
Not being able to cancel them in BK was the way to make slaves of those who go to college having to borrow money.
.
More seriously though I've never understood why we as a society held student debt as different than other forms of debt when it comes to bankruptcy laws.
@Revelate wrote:
@gdale6 wrote:
Not being able to cancel them in BK was the way to make slaves of those who go to college having to borrow money.
More seriously though I've never understood why we as a society held student debt as different than other forms of debt when it comes to bankruptcy laws.
Because most other types of loans aren't backed by the Government (AKA you and me) and unlike so many other things, once you have a degree then it can't really be taken back. A house can be foreclosed on, a car repossessed but knowledge can't exactly be taken out of your head. At least not in any legal fashion. Either people need to repay one way or the other or the Government needs to get out of the education loan business. Honestly I'd rather the Government stay out of it, if your "education" can't pass muster for a bank to loan you money for it then you don't need it or you can pay for it out of pocket.
8/22/24
@Lou-natic wrote:
@Revelate wrote:
@gdale6 wrote:
Not being able to cancel them in BK was the way to make slaves of those who go to college having to borrow money.
More seriously though I've never understood why we as a society held student debt as different than other forms of debt when it comes to bankruptcy laws.
Because most other types of loans aren't backed by the Government (AKA you and me) and unlike so many other things, once you have a degree then it can't really be taken back. A house can be foreclosed on, a car repossessed but knowledge can't exactly be taken out of your head. At least not in any legal fashion. Either people need to repay one way or the other or the Government needs to get out of the education loan business. Honestly I'd rather the Government stay out of it, if your "education" can't pass muster for a bank to loan you money for it then you don't need it or you can pay for it out of pocket.
Maybe, but IRS tax debt is owed to the goverment which also winds up being We the People paid, and that can be discharged. One could also argue FHA/Fannie/Freddie also are government-backed, though the GSEs are just in a seriously weird situation now admittedly where the government won't cough them back out seemingly.
I don't think you're wrong, but you hint at massive other issues in the educational system which we probably need to address but that goes well beyond just reforming the way student loan debt is handled.
Maybe it's so hard to discharge because it's so easy to get...
