Nah, just make it legal again for bankruptcy to erase student debt. Exploding tuition costs only became a thing when that law was changed. “You mean we can charge whatever we want, loan it out to unqualified borrowers and they’re on the hook for life with no way to discharge it? Awesome!”
If bankruptcy could discharge tuition debt again, you’d see a wave of defaults, then tuition costs would crash back to affordable levels that were actually reasonably able to be paid off - at least, it would be less painful than what declaring bankruptcy would do, which is exactly the point. 🤷♂️
You’re right, but I don’t think congress would permit it simply because it would also tank their investments. The smarter play would be to grandfather-in existing student loans, and make all future loans susceptible to bankruptcy - but that would also have its own knock-on effects. Either way it’s a shit sandwhich that should have never existed in the first place.
Nah, just make it legal again for bankruptcy to erase student debt. Exploding tuition costs only became a thing when that law was changed. “You mean we can charge whatever we want, loan it out to unqualified borrowers and they’re on the hook for life with no way to discharge it? Awesome!”
If bankruptcy could discharge tuition debt again, you’d see a wave of defaults, then tuition costs would crash back to affordable levels that were actually reasonably able to be paid off - at least, it would be less painful than what declaring bankruptcy would do, which is exactly the point. 🤷♂️
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You’re right, but I don’t think congress would permit it simply because it would also tank their investments. The smarter play would be to grandfather-in existing student loans, and make all future loans susceptible to bankruptcy - but that would also have its own knock-on effects. Either way it’s a shit sandwhich that should have never existed in the first place.