“impossible for students to walk away from education loans”
What’s wrong with making that impossible? The rest of us have to pay our debts. Why exempt students, aside from strengthening the (D)o-nothing voter base?
The problem was people fresh out of college had no assets and often little income. A newly minted pair of lawyers, for instance, with over $200,000 of student lones and earning well over $150,000 combined income, could simply file for bankruptcy and walk away from all that debt.
Clearly there were abuses.
Whats wrong with making that impossible?
Simple, because it removes any incentive on the loaning party to do proper care before making loan.
One of the problems we have in this nation today is it is too easy to borrow money.
I was shocked the first time I saw someone using a credit card buying food. If you are buying necessities on credit you are on a downward spiral.
What makes a student loan so sacrosanct? We as a society allow for all kinds of debt relief on amounts far greater than school loans. Why are school loans specifically rigged to be impossible to be discharged?
For example, a person who never took out a school loan but bought a million dollar house in CA with a federally backed mortgage at the top of the market defaults, declares bankruptcy, accepts the consequences and the taxpayers get stuck with a half million dollar bill. How is that better than a 20 to 100k dollar school loan?
I do not want to subsidize bad behavior but it is surreal to argue that some debt should and some debt should not be dischargeable.
For colleges that's pretty cool. Now, they can increase the tuition, knowing that a student is liable for any loans for the rest of their life. Cool huh?
College tuition would radically drop if their was no Gov't grants, loans, etc. But, if a college knows they will eventually get paid they have no incentive to lower prices.