re: Barack Obama cracks down on for-profit colleges: Why do it this way?

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You're confusing defaulting and discharging in bankruptcy.

The mere act of not paying is defaulting. Anyone can default.

But, you can't discharge these student loans in bankruptcy.

There have been several legislative attempts to allow non-Federal loans to be dischargeable in bankruptcy. But, the student loan lobby and the for-profit schools spread around enough lobbying money to make sure this will never happen

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