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FED Chief: Student Loan Debt Should be Dischargeable

Regular Contributor

FED Chief: Student Loan Debt Should be Dischargeable

Burgeoning levels of student loan debt could slow down economic growth over time, Federal Reserve Chairman Jerome Powell said Thursday.

 

Education debt swelled to nearly $1.38 trillion at the end of 2017, with 11 percent of borrowers 90 days or more delinquent, according to the New York Fed.

 

He also wondered why student debt can't be discharged in bankruptcy.

 

"I'd be at a loss to explain why that should be the case," he said, while acknowledging that the issue is one for Congress to tackle.

 

https://www.cnbc.com/2018/03/01/student-loan-problems-could-hold-back-economic-growth-fed-chief-says...

Message 1 of 24
23 REPLIES
Established Member

Re: FED Chief: Student Loan Debt Should be Dischargeable

Is that guy really a banker? Doesn't understand that lending on those terms is really just giving away money? Well I guess that is how bankers are in the age free government money

Message 2 of 24
Frequent Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable

Somewhat related: https://m.mic.com/articles/187807/want-to-grow-the-us-economycancel-student-debt-new-report-shows#.L...

The study showed the 10-year GDP increase would be substantial if all student loan debt was forgiven in place of the large tax credit that recently took place.
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Message 3 of 24
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Established Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable

Dischargeable? Smiley LOL So another words off the hook?

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Message 4 of 24
Frequent Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable

I’d file bankruptcy just to get rid of my student loans lol
Message 5 of 24
Super Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable


@sueblue34wrote:
I’d file bankruptcy just to get rid of my student loans lol

Confusion ... student loans can be Bk'd?

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Message 6 of 24
Frequent Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable

That’s what the article is questioning - why student loans aren’t discharged in bankruptcy

Message 7 of 24
Established Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable


@sueblue34wrote:
That’s what the article is questioning - why student loans aren’t discharged in bankruptcy


Just curious is problem because young folks got in way over their head? in loans as in kept changing what they... want to do in life? for a person like myself I'd have no choice to pay back the loan my parents even said so.

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Message 8 of 24
Frequent Contributor

Re: FED Chief: Student Loan Debt Should be Dischargeable

No I actually didn’t change my major. Have a masters degree but I knew nothing about scholarships or grants. I was the first in my family to go to college so I had to figure everything out myself. My first degree was paid for purely throughly financial aid but my BS and MHL degree was achieved from loans.
Message 9 of 24
Moderator

Re: FED Chief: Student Loan Debt Should be Dischargeable


@CapCredit72wrote:

@sueblue34wrote:
That’s what the article is questioning - why student loans aren’t discharged in bankruptcy


Just curious is problem because young folks got in way over their head? in loans as in kept changing what they... want to do in life? for a person like myself I'd have no choice to pay back the loan my parents even said so.


Education costs have rapidly outpaced inflation over the past couple of decades, and wages are relatively stagnant.   And SLs are nearly impossible to discharge in BK, even though nearly every other type of debt is.   When I declared BK, I had about $30K of CC debt wiped clean, but the SLs remained.   I continued to struggle after BK, so the SLs were defaulted for a while.   I'm still paying SLs and will be paying for a considerable about of time.  



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