Student loans to gain bankruptcy protection?

[Portland Ute]

http://www.insidehighered.com/news/2...tudent-lending

Sometimes it was simply making foolish decisions in college and getting worthless degrees. But at some point we have to allow these people to move on with their lives.

Why?

At the expenes of those of us that made wise decisions and have paid faithfully on our student loans and have no way of getting out of the debt that was driven higher by tuition that was pushed higher on the backs of these non-dischargeable loans?

I want a reduction, AT LEAST, if other people are getting loans fully discharged.

[Color Me Badd Fan]

Why?

At the expenes of those of us that made wise decisions and have paid faithfully on our student loans and have no way of getting out of the debt that was driven higher by tuition that was pushed higher on the backs of these non-dischargeable loans?

I want a reduction, AT LEAST, if other people are getting loans fully discharged.

Fine give a reduction, but the government enabled this by making these things nondischargeable and inflated the bubble. And they need to put a stop to it by making these dischargeable (within limits of course). If they don't do this, the problem will only get worse.

I just think that someone in their 40s that made the decision to major in French Literature when they were 18 should at some point be able to at least get out from under the student loan debt associated with their decision. I'm sure they're well aware of their poor decisions by their reduced earning capacity, but the debt itself prevents them oftentimes from living much more than a comfortable life.

Before 2005, these private loans were dischargeable. Why can't we at least return to that?

[Paperback Writer]

$70k?! And I thought I had it bad. I managed BYU with a wife and two small kids and I don't even have 1/3 of that.

But did you focus on academics??? It's hard to muster empathy for the cited example. My spouse and I both worked and were full-time students. We also managed to focus on academics since school was also our top priority. And we have since paid off our student loans. Our years in school were stressful and not much fun because of the pressures of work and school and not having enough time for both.

[Portland Ute]

Fine give a reduction, but the government enabled this by making these things nondischargeable and inflated the bubble. And they need to put a stop to it by making these dischargeable (within limits of course). If they don't do this, the problem will only get worse.

I just think that someone in their 40s that made the decision to major in French Literature when they were 18 should at some point be able to at least get out from under the student loan debt associated with their decision. I'm sure they're well aware of their poor decisions by their reduced earning capacity, but the debt itself prevents them oftentimes from living much more than a comfortable life.

Before 2005, these private loans were dischargeable. Why can't we at least return to that?

Yeah, but the government is going to make me pay for the inflated bubble twice. Once when I paid the inflate tuition and the second time when I pay for someone else's inflated tuition.

Similar to the housing bubble and regulations that mandated loans be given to everyone.

I'm sick of paying for everyone else's shit and bad decisions that were facilitated by the government.

[lambdacoug]

But did you focus on academics??? It's hard to muster empathy for the cited example. My spouse and I both worked and were full-time students. We also managed to focus on academics since school was also our top priority. And we have since paid off our student loans. Our years in school were stressful and not much fun because of the pressures of work and school and not having enough time for both.

I did.

My wife worked. Which was a good deal for us...but a better deal for her and her boyfriend/boss.

[wuapinmon]

I'm sick of paying for everyone else's shit and bad decisions that were facilitated by the government.

That's how bubbles work.

[Color Me Badd Fan]

Yeah, but the government is going to make me pay for the inflated bubble twice. Once when I paid the inflate tuition and the second time when I pay for someone else's inflated tuition.

Similar to the housing bubble and regulations that mandated loans be given to everyone.

I'm sick of paying for everyone else's shit and bad decisions that were facilitated by the government.

Were you still in school after 2005? I'm confused. I wrapped up my schooling right around that time. But even since I got done, things have gotten even more out of control with tuition. I have one of these private loans, but it was originated before 2005 and right now I'm paying 1.5% on it. So clearly there wasn't much reason to make them nondischargeable in the first place.

Not doing anything will just make things worse. I know it will punish people who play by the rules, but the people who play by the rules are still rewarded with higher credit ratings and easier access to credit that enables them grow their businesses. No one wins here, but blame the Republicans for reforming the bankruptcy laws in 2005. Easy money inflates bubbles.

[TripletDaddy]

I'm sick of paying for everyone else's shit and bad decisions

lol. very Christ-like.

[Indy Coug]

lol. very Christ-like.

I was going to ask if rolling eyes was very Christlike, but then I saw this:

[wuapinmon]

The govt should at least stop authorizing loans for for-profit "institutions."

[Paperback Writer]

The govt should at least stop authorizing loans for for-profit "institutions."

+1. Or if they do continue, have the for-profit "institution" co-sign the loan.

[The_Douger]

Yeah, but the government is going to make me pay for the inflated bubble twice. Once when I paid the inflate tuition and the second time when I pay for someone else's inflated tuition.

Similar to the housing bubble and regulations that mandated loans be given to everyone.

I'm sick of paying for everyone else's shit and bad decisions that were facilitated by the government.

Rack that take.

I have zero sympathy for anyone drowning in student loan debt. Nobody made you take them out for your useless European Art History PhD.

Use some fiscal sense.

[The_Douger]

+1. Or if they do continue, have the for-profit "institution" co-sign the loan.

I think giving the schools some liability would limit their willingness to hand out free money that's guaranteed to be repaid.

The current problem is part of the unintended consequences of making loans easier to get.