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To: Repeal The 17th

“Student loan debt should not be treated any differently than any other debt in bankruptcy court.”

If applied to existing debt, it would be a form of legal theft. If the new rules applies only to new debt, there will be no more private debt, and all student loans will be managed by the federal government (which is just what Obama wants).

The reason that student loan debt is not dischargeable in bankruptcy is that in a free market no private lender would offer student loans at a reasonable rate if the 22-year old graduates could borrow as much as they want and immediately file for bankruptcy afterwards.


16 posted on 07/20/2012 4:24:43 PM PDT by Stat-boy
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To: Stat-boy

Bingo. That was exactly what was happening before the law exempting student loans from bankruptcy .... and yes, you guessed it, LAWYERS were in the lead of previously bankrupting out of student loans. No one forces anyone to take these loans ... just a lot of lazy, I deserve it spoiled children.


17 posted on 07/20/2012 4:31:15 PM PDT by RetiredTexasVet (Skittle pooping unicorns are more common than progressives with honor & integrity.)
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To: Stat-boy
Student loans used to be dischargeable. A debtor couldn't file on them until at least seven years and six months expired after the last student loan was made.

The rates charged to students were still very favorable.

48 posted on 07/20/2012 7:20:13 PM PDT by CharacterCounts (A vote for the lesser of two evils only insures the triumph of evil.)
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