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

quote:

---

Didn't think you could default on student loans? At least not the federal ones (ie the ones that really matter).

---

quote:

---

Prior to 2005, private label student loans were treated like other unsecured debt in bankruptcy, and were essentially discharged at the end of the bankruptcy case.

However, in 2005, Congress changed the status of private label loans in bankruptcy to match that of federal loans.

---