School loans eligible to be discharged in bankruptcy?

[cabri]

Government forgave the crimes and many trillions of dollars stolen by a relative handful of uneducated assholes on Wallstreet...so what's the issue with helping out a relatively better-educated population, that aren't costing the American people nearly as much money?

The government loaned the WallStreet groups $$ with the condition that it was paid back.
Most have done so.

While individuals may have manipulated the system and made off with $, their organizations either folded and fell into the category above. The $ stolen did not come from the taxpayer but the investors.

While I will agree that many of those that manipulated the system did not get punished.

 

[Printer Bandit]

Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.

you gonna get fucked.

 

[CountZero]

Student loans should be dischargeable in some way. It would require its own set of rules but there should be some means of getting out of at least some of the debt.

Lending is a two way street and we've removed most of the risk from the lender and put all of it on the borrower.

You could do something like the following (not a perfect idea but just a thought):

First 20k is not dischargeable.
Second 20k is a loss to the lender in the case of bankruptcy.
Everything after that first 40k is on the school's books. They don't get the up front payment they just get the money trickling in.

The exact number amounts would probably be different and would be pegged to inflation. Basically if you take out loans there is some amount you will have to pay no matter what, this should be enough to cover most public schools. Between 20k and 40k the lenders have some skin in the game, maybe they have restrictions on majors, gpa requirements, whatever, this should cover every public school and most reasonable private schools. Over 40k is getting crazy, if you want to charge that much tuition you should take on the risk.

The numbers are placeholders and the idea has holes but I do believe with some work we could come up with a system that would work. Right now the system is just broken. The amount of debt owed is starting to drag on the economy and it will only continue to get worse.

Also screw that guy, born in 1957 as a boomer he was handed everything. Got the best America ever has had and possibly ever will have to offer compared to the generations before and after.

 

[highland145]

^^
As long as the taxpayer isn't on the hook.

 

[poofyhairguy]

^^
As long as the taxpayer isn't on the hook.

The taxpayer always is.

Even if we don't have massive debt forgiveness, that just means after the baby boomers the concept of retirement accounts go the way of the dodo and our elderly are even more dependent on entitlements because they couldn't save as much during their career.

This is going to end in a taxpayer funded mess one way or another.

 

[highland145]

The taxpayer always is.

Even if we don't have massive debt forgiveness, that just means after the baby boomers the concept of retirement accounts go the way of the dodo and our elderly are even more dependent on entitlements because they couldn't save as much during their career.

This is going to end in a taxpayer funded mess one way or another.

Private lenders qualify the loans. It's on their ass to collect. The schools know they will get x.xx for a degree....oh, shit....they reduce the costs or fold. If you cut out the govt guarantee, costs will drop.

Pete posted, a while back, a 36% increase at Clemson in the last 5 years.....pretty sure the grads aren't getting a 36% increase in the quality of their education.

The new, 40 years from now elderly, won't be in debt. The lenders won't give them any $$ like the OP's story.

Again, the underlined. I've got 4 years for this crap to collapse before my 14 yo goes to college or he'd better earn some serious scholarship $$.

 

[SsupernovaE]

The only person I know that has successfully discharged federal student loan debt is my cousin. He has advanced spinal muscular atrophy and is now ventilator dependent and bedbound. He had $75,000 in loans from Harvard. He went on to get a phd in physics from Caltech. Fucker's smart.

 

[Brainonska511]

The only person I know that has successfully discharged federal student loan debt is my cousin. He has advanced spinal muscular atrophy and is now ventilator dependent and bedbound. He had $75,000 in loans from Harvard. He went on to get a phd in physics from Caltech. Fucker's smart.

Yeah. Muscular diseases are one of the reasons you can get student loans discharged. But I'd rather pay back a loan than have a crippling disease.

 

[lupi]

Dear Abby: I am a single woman who borrowed $80,000 to send my daughter to college with the understanding that she would take over the payments once she was professionally established. She is now so “into” her new lifestyle that she is refusing to have contact with her “poor” birth mother. She refuses to take responsibility for repaying the loan, which is in my name, and says “tough luck” to my stupidity. This means I will have to continue working until I drop dead. Abby, I am 60. Is there any help for me? Has this happened to other Baby Boomers?
Poor Birth Mother in Georgia


Dear Poor: Sadly, yes it has. And no, there isn’t help for you. Because the agreement with your daughter was wasn’t put in writing, you don’t have a legal means to force her to assume the loan payments.

 

[videogames101]

As a recent grad who will be paying back every penny of my $100k debt in a timely fashion, people like this can fuck right off. All these idiots who borrow without any plan to pay it back are whats causing rates to be so high anyway. Student loan rates should be based off employment rate and expected income of program you're applying for, so I wouldn't have to pay for my own education and for the millennial liberal arts flower children.

 

[highland145]

As a recent grad who will be paying back every penny of my $100k debt in a timely fashion, people like this can fuck right off. All these idiots who borrow without any plan to pay it back are whats causing rates to be so high anyway. Student loan rates should be based off employment rate and expected income of program you're applying for, so I wouldn't have to pay for my own education and for the millennial liberal arts flower children.

Hater.


Kidding, props to you and I hope you make bank. My social security fund needs it.

 

[BUTCH1]

Not only do I have a BA in Anthropology, I have a Masters as well. I'm also employed. I also think my friend (however naive he may have been) who went to George Washington Law and then dropped out during year two, should have a huge chunk of his debt forgiven. Let's just have people pay upon completion, then we can call it what it is. Buying your degree.

Gee, I bought a Corvette and was not required to start making payments until after 3 years of driving it. Now that I find it boring and it burns a lot of gas I should never make any payments, right?, it's only fair, I gave it back, OK?

 

[BUTCH1]

Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.
Do not co-sign on a student loan.

you gonna get fucked.

For once PB I 100% agree with you. My neighbor co-sighed his kid to go to "music production "school, he dropped out and neighbor is holding the $35K bag. Kid's a douche IMO.

 

[MongGrel]

Gee, I bought a Corvette and was not required to start making payments until after 3 years of driving it. Now that I find it boring and it burns a lot of gas I should never make any payments, right?, it's only fair, I gave it back, OK?

Just don't lock yourself and your puppy in it at waffle house.

:whiste:

 

[highland145]

For once PB I 100% agree with you. My neighbor co-sighed his kid to go to "music production "school, he dropped out and neighbor is holding the $35K bag. Kid's a douche IMO.

dafuq? Neighbor's stupid. Might love his child but he's stupid. Keep us posted on the cars he buys and the life style he supports for the kid.

 

[highland145]

Just don't lock yourself and your puppy in it at waffle house.

:whiste:

Was the old guy outside a waffle house? Guess the SPCA peeps don't eat there.