Bankruptcy becoming a possible alternative

[distressstudent]

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Crushed by student loan debt? You may get a bankruptcy option

Democrats in Congress propose bankruptcy reform to aid families and individuals hurting due to college debt.

www.cbsnews.com

Student debt being pushed to be included part of chapter 10 bankruptcy.

Maybe still won't be a viable option for many, but could be a safety net for those who end up never matching or those who decide that medicine isn't their passion.

Thoughts?

 

[doctalaughs]

Crushed by student loan debt? You may get a bankruptcy option

Democrats in Congress propose bankruptcy reform to aid families and individuals hurting due to college debt.

www.cbsnews.com

Student debt being pushed to be included part of chapter 10 bankruptcy.

Maybe still won't be a viable option for many, but could be a safety net for those who end up never matching or those who decide that medicine isn't their passion.

Thoughts?

Stupid idea. “Bankrupting” someone and no longer paying that student loan debt (Or the government “forgiving” government loans) doesn’t mean it disappears - it means everyone who was actually responsible is paying it for that person.

The answer is to not make loans to people that get useless degrees with low probability of paying back, or making the loans private only (so the loaning institution can judge the credit risk and decide if it’s worth the possibility of default by setting an interest rate).

 

[deleted126335]

Stupid idea. “Bankrupting” someone and no longer paying that student loan debt (Or the government “forgiving” government loans) doesn’t mean it disappears - it means everyone who was actually responsible is paying it for that person.

The answer is to not make loans to people that get useless degrees with low probability of paying back, or making the loans private only (so the loaning institution can judge the credit risk and decide if it’s worth the possibility of default by setting an interest rate).

If that were true there would be a helluva lot fewer bankruptcies. I think that it is actually a good idea at this point. Declaring bankruptcy actually does have real consequences.