There should be regulations in relation to these loans. I have 5 different
student loans, 2 federal and 3 private. The private were pushed upon me by the
school I attended. As a 36 y.o. trying to provide better for his family I
didn't have much choice than to accept these in order to complete school.
Now the degree I have is just about useless in this economy. I cannot keep up
with the payments they want as well as provide for a wife and 3 kids. I
understand having to prove a hardship, with the private loans being set at
16.75% interest there is no way I can pay for a house, vehicles, daycare, school
tuition etc. There needs to be some, repeat, some reform to the bankruptcy laws
to not make it simple, but to make it a little easier to prove a hardship for
these loans. Maybe if more people are able to prove hardships then schools and
lenders will earn that the cost and the interest rates are just way too high.
Right now with bankruptcy as difficult as it is they have no way of being
stopped because there are no repercussions.
I worked while i was in college getting a good degree (not a worthless one), but
i had to pay my own rent and other adult responsibilities because i didn't
have rich parents who could baby me right out of high school. The funny thing is
my mom paid taxes and was a productive member of society it just wasnt
enough.FYI for anyone who is a racist: I am white and i pay taxes
and so does my mom i've collected unemployment a few times in my life for
being laid off, but other than that i don't leech off the system. All i
want is a lower interest rate on my loans (like 2 percent) so i can actually pay
the things off. My interest rate is anywhere from 4% to 8% depending on which
loan as i have like 15 different ones *Sigh*
Dan Austin, who is quoted several times in this article, has just co-authored a
book on this subject called Graduating with Debt: Student Loans under the
Bankruptcy Code. It is one of the first books to provide an in-depth analysis of
the issues surrounding the discharge of student loan debt through the bankruptcy
You can lead a student to collage but you can't make them think. Collage is
an expensive place for entertainment.
One more "entitlement" in the making. ...
BO is ALMOST making sense. There is federal funding going to colleges, tie it to
something measurable that is beneficial to society. Schools cost too much
and/or do not produce qualified students? give them less or no federal money.But DO NOT let those who have already borrowed, many to satisfy their
curiosity or entertain themselves rather than to become productive members of
society, get out of paying back what they borrowed.
I know.... how about the federal government gets out of the education business
all together? Let states decide what degrees would benefit their industry and
give loans to people who will actually have enough income to pay them back when
they graduate.Giving $50,000 to a French poetry major is just a
stupid loan. No bank would ever make it without a rich parent guaranteeing the
debt. But the government hands them out like candy, creating a huge increase in
demand for worthless college degrees. And the universities keep raising their
prices to match the demand....duh!!But, I guess everyone has a
"right" to get a degree in whatever field they choose and the evil rich
people (a.k.a. those of us who pay taxes) need to pay for it.
Yeah lets just forgive the debts of the students who chose to go to expensive
colleges and refused to work during that time to pay for it. Good idea. In the
meantime how about forgiving all home loans too - just write them off and
don't make people pay them back, oh and they get to stay in the homes. Does
that sound fair? If they file bankruptcy on student loans, all credit for going
to the school should be wiped off. Fair is fair. If you don't pay for it,
you don't get to keep it.
Seriously the whole reason why student loans are the way they are now was
because back in the 70s and 80s students were taking out loans racking up huge
debt and then discharging them through bankruptcy. This would kill the economy
and hurt education in ways that would be nearly irreversible. This law is
While bankruptcy may help the borrowers, it certainly does nothing to help our
country which is subsidizing and guaranteeing the absurd number of student
loans.THe federal government is on the verge of bankruptcy, but that
will not help anyone.
The current law is a very good indication of what a Joe Biden presidency would
be. He is the proud author of it.
The negatives of allowing bankruptcy. Higher interest rates, collateral
requirement (mom and pops home). fewer loans available. There is no free
This is so unfair to those students who worked so hard while getting their
college education. Many students worked at least part time while attending
school and paid some or all of their college tuition. They also worked hard
during the summer months so they wouldn't have so much school debt after
they graduated. Many responsible kids chose colleges with lower costs so they
wouldn't have to take out massive loans.In the future is the
government willing to pay total college costs for everyone that wants to go to
college so they won't have these debts. Or do the students rack up big
debts knowing they can take out bankruptcy after they graduate?