nor should they be... the collateral in the deal was the knowledge and that can't be repossessed, unless you cut their head off that isI predict that Obama will eventually ask that student loans be forgiven in bankruptcy. Right now, in most cases, such loans can’t be discharged in bankruptcy.
The other thing Obama will do, is ask that loans be forgiven if the students work in politically correct fields, such as teaching in inner city schools, or being social workers. Whatever happens, if loans can be written off, or discharged in bankruptcy, it means that they won’t be paid back.
I think there should be some quid pro quo for writing any of these loans off. Not sure I agree with potential ideas of his excelleny, but they should at least have to put some effort into it rather than just tossing them onto the taxpayers to pay for their folly sans liability, even if we give them credit at far above the wages they are working for to pay it back in indirect proportion to their pay, for instance, someone earning 50K gets no write off while someone earning say 25K gets a loan write off of half the difference to a set standard, or in this case, $12500. No earned income say $25K a year.
In bankruptcy one must give up most of their assets, so, unless we chop off their heads, how does one recover an education asset otherwise? I say measuring it against their taxable income is a valid way.
“Whatever happens, if loans can be written off, or discharged in bankruptcy, it means that they won’t be paid back.”
I think you’ve got it backwards. The loans won’t be paid back, for the most part, so that means they need to be written off, or discharged in bankruptcy.
The implications are mostly to Academia. As long as they aren’t written off or discharged, Academia can pretend they will be paid in full and continue to be the beneficiary of student loan money.
Once they ARE discharged in bankruptcy, the game is up for Academia. They either have to guarantee that a student will be able to pay back a loan they take out (which they obviously can’t/won’t do) or they have to reduce their prices to a level in which loans can be paid back (which they also can’t/won’t do - voluntarily).
Look for unemployed Liberal Arts professors to be competing with their former students for Barista jobs a the local Starbucks as soon as student loans start being discharged.
This is how the dems will get Hillary elected in 2016. GIVE, GIVE, GIVE our money away to get votes.
nor should they be... the collateral in the deal was the knowledge and that can't be repossessed, unless you cut their head off that isLearn What the Student Loan Forgiveness Act Could Mean for You
By EQUAL JUSTICE WORKS
March 21, 2012 RSS Feed Print
On March 8, Congressman Hansen Clarke (D-Mich.) introduced H.R. 4170, the Student Loan Forgiveness Act of 2012.
Normally we don’t go into the findings of particular pieces of legislation, but the Student Loan Ranger thinks findings like this are refreshing and show Rep. Clarke is living in the reality most of us inhabit, including:
Total outstanding student loan debt officially surpassed total credit card debt in the United States in 2010, and is on track to exceed $1,000,000,000,000 during 2012;
Excessive student loan debt is impeding economic growth in the United States. Faced with excessive repayment burdens, many individuals are unable to start businesses, invest, or buy homes;
Because of soaring tuition costs, students often have no choice but to amass significant debt to obtain an education that is widely considered a prerequisite for earning a living wage.”
If you want to hear more from Rep. Clarke, you can watch him introduce the bill in the House. But right now we’re going to do what the Student Loan Ranger does best: explore the details.
The act would create a new 10/10 Loan Repayment Plan (with new forgiveness provisions), cap interest rates for all federal loans, greatly improve Public Service Loan Forgiveness, and convert some borrowers’ private loans to federal loans. That’s a lot! Here’s more information on four key parts: