Welcome to DU!
The truly grassroots left-of-center political community where regular people, not algorithms, drive the discussions and set the standards.
Join the community:
Create a free account
Support DU (and get rid of ads!):
Become a Star Member
All Forums
Issue Forums
Culture Forums
Alliance Forums
Region Forums
Support Forums
Help & Search
Editorials & Other Articles
In reply to the discussion: Should Student Loans be Dischargeable in Bankruptcy ? [View all]spooky3
(34,303 posts)14. Part of the problem is the for-profit schools that exploit people to get the loan money
The Congress investigated this in the past few years and found that the default rate is much higher for students attending (and not graduating, in many cases) from these schools. If these loans are forgiven, the primary beneficiary is these schools. I would like to see more tightening up of the standards, then more flexibility on forgiveness.
Edit history
Please sign in to view edit histories.
62 replies
= new reply since forum marked as read
Highlight:
NoneDon't highlight anything
5 newestHighlight 5 most recent replies
RecommendedHighlight replies with 5 or more recommendations
No. Most graduates won't want to have bankruptcy on their record for the next seven years.
pnwmom
Jan 2012
#25
No. The interest rate on a National Direct Student Loan (meaning it did NOT go through private banks
1monster
Jan 2012
#41
no. student loan companies gave money to congress to get the exemption. that's the reason.
limpyhobbler
Jan 2012
#13
Oh stop bringing facts to the argument. The guy wants to punish these lazy youngsters
gtar100
Jan 2012
#43
Part of the problem is the for-profit schools that exploit people to get the loan money
spooky3
Jan 2012
#14
Would you loan your savings to a college student knowing they can declare bankruptcy the day after
dkf
Jan 2012
#19
Nobody needs to be encouraged to make student loans. The Dept. of Education makes them directly now.
limpyhobbler
Jan 2012
#22
Depends on the student. But declaring bankruptcy has repercussions for at least 7 years
pnwmom
Jan 2012
#26
unpayable student loans should be treated as what they are, a failed investment, watch this video
limpyhobbler
Jan 2012
#29
FYI: Education should be fully funded by the government. It is an investment in society's future.
xocet
Jan 2012
#33
"enormous houses, horses, boats, RV's, retail debt, memberships in this and that"
limpyhobbler
Jan 2012
#38
Isn't denying bankruptcy to all based on irresponsibility of some is painting with a broad brush?
limpyhobbler
Jan 2012
#50
We need to do something to stem the crushing debt, especially from questionable schools.
DirkGently
Jan 2012
#39