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To: RFEngineer

“But if you are saying that the only way to solve the student loan problem is to keep giving student loans’

Where did I say that?


62 posted on 11/29/2012 8:57:42 AM PST by outpostinmass2
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To: outpostinmass2

“Where did I say that?”

You didn’t know that you said it, but you said it indirectly.

Let me explain:

Your premise is that the student loan bubble is “too big to fail” because it would “cripple the US economy”. Then by failing to continue to fund it, you would also cause it to fail.

So you are directly implying we should continue to fund the student loan program because failing to do so will cripple the economy.

You are wrong on both points, in my opinion. We should treat student loan debt just like any other debt, and we should not continue to fund it. It won’t cripple the economy any worse than it is now. Much will have to be written off, but it is only written off if it cannot be repaid as defined by the bankruptcy process.

There are distinct economic advantages to freeing people from debt they cannot repay. That’s why the bankruptcy code exists.


74 posted on 11/29/2012 9:27:43 AM PST by RFEngineer
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