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Started By
Message
Epic irony alert. Biden Ed. Dept. screws, glues and tattoos student loan holders again.
Posted on 2/4/22 at 8:52 am
Posted on 2/4/22 at 8:52 am
Let me set the context of this story first. This story is just dripping with irony.
This was the act past in 2005 which makes it impossible for student loan responsibility to be shed through bankruptcy (like all other loans during times of hardship).
Fast forward to this court case:
But,
For those reading at home that means Biden's education department, the same Biden and Democrats that say they want to forgive student loan debt, are appealing the lower court decision and not allowing Ryan Wolfson to use bankruptcy to shed this student loan debt responsibility.
Meanwhile in congress the GOP is trying to get things back to where the borrower/lender relationship was prior to 2005 and allow student loan borrowers to use bankruptcy to shed loan debt JUST LIKE IN EVERY INDUSTRY except education.
It looks like the GOP had to settle on the 10 year window instead of just eliminating Joe Biden's 2005 Bankruptcy Abuse Prevention and Consumer Protection Act all together.
The main problem with student loan debt is the federal government has corrupted the lender borrower relationship. Specificity the federal government has lowered the lender risk burden to an incredibly low level. The only way to fix student loans is just get the federal government out of the way and allow student loan borrowers declare bankruptcy then lenders can risk rank borrowers accurately like it is done for every other loan in the business world.
LINK
quote:
As a senator, Biden was one of the lawmakers who supported the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which established stricter standards a borrower must meet to get rid of their loans through bankruptcy.
This was the act past in 2005 which makes it impossible for student loan responsibility to be shed through bankruptcy (like all other loans during times of hardship).
Fast forward to this court case:
quote:
Two weeks ago, Ryan Wolfson achieved a rare feat in court — a successful elimination of his nearly $100,000 student-debt load through bankruptcy.
But,
quote:
The Daily Poster first reported on Wednesday that the Justice Department last week filed a notice of appeal on behalf of Education Secretary Miguel Cardona in the case Wolfson v. DeVos.
For those reading at home that means Biden's education department, the same Biden and Democrats that say they want to forgive student loan debt, are appealing the lower court decision and not allowing Ryan Wolfson to use bankruptcy to shed this student loan debt responsibility.
Meanwhile in congress the GOP is trying to get things back to where the borrower/lender relationship was prior to 2005 and allow student loan borrowers to use bankruptcy to shed loan debt JUST LIKE IN EVERY INDUSTRY except education.
quote:
Still, a bipartisan group of lawmakers want the process reformed. Insider reported in August that Senate Majority Whip Dick Durbin and Sen. John Cornyn of Texas introduced the FRESH START Through Bankruptcy Act of 2021, which would allow borrowers to seek a bankruptcy discharge of their federal student loans after 10 years.
It looks like the GOP had to settle on the 10 year window instead of just eliminating Joe Biden's 2005 Bankruptcy Abuse Prevention and Consumer Protection Act all together.
The main problem with student loan debt is the federal government has corrupted the lender borrower relationship. Specificity the federal government has lowered the lender risk burden to an incredibly low level. The only way to fix student loans is just get the federal government out of the way and allow student loan borrowers declare bankruptcy then lenders can risk rank borrowers accurately like it is done for every other loan in the business world.
LINK
7
Posted on 2/4/22 at 8:55 am to GumboPot
And this will get zero coverage
Posted on 2/4/22 at 8:58 am to GumboPot
Here's an idea.
If you borrow money, pay back the money.
If you borrow money, pay back the money.
Posted on 2/4/22 at 8:58 am to GumboPot
If you drop your student loans in bankruptcy, should you surrender all evidence that you ever attended college?
I mean, what's to stop 22-25 year old fresh college grads with over 100k in loans from filing bankruptcy when they only have 10k to their name anyway?
I mean, what's to stop 22-25 year old fresh college grads with over 100k in loans from filing bankruptcy when they only have 10k to their name anyway?
This post was edited on 2/4/22 at 9:02 am
Posted on 2/4/22 at 9:00 am to GumboPot
quote:
This was the act past in 2005 which makes it impossible for student loan responsibility to be shed through bankruptcy
It's kind of a double edged sword. If people are allowed to bankrupt their student loan debt, private lenders will go out of business. So, kids who really need loans to major in worthwhile disciplines like engineering and medicine will be unable to afford their education. On the other hand, people will not be able to run up $250K in student debt majoring in bullsh!t like women's studies, African American studies, or pretty much anything that ends in "studies".
This post was edited on 2/4/22 at 9:03 am
Posted on 2/4/22 at 9:01 am to Displaced
In general, a lot of people defaulting on student loans wouldn’t be surrendering much.
Some of them are people who are working who can’t or won’t manage their money.
But far more of them tend to be idiots who ran up six figures at private liberal arts colleges getting degrees in useless fields.
Some of them are people who are working who can’t or won’t manage their money.
But far more of them tend to be idiots who ran up six figures at private liberal arts colleges getting degrees in useless fields.
Posted on 2/4/22 at 9:01 am to Displaced
quote:
If you drop your student loans in bankruptcy, should you surrender all evidence that you ever attended college?
Exactly.
If you fail to pay your note then they repossess your degree.
Just like a car or home.
Posted on 2/4/22 at 9:02 am to teke184
quote:
But far more of them tend to be idiots who ran up six figures at private liberal arts colleges getting degrees in useless fields.
I agree but there needs to be some liability held against these universities for offering shite degrees.
Posted on 2/4/22 at 9:03 am to MMauler
The changes of the past 20 years pretty much federalized student loans.
If the feds got out and private industry were to get back into doing this, the interest rates would skyrocket due to increased risk of default as well as banks not being able to eat defaults as easily as the feds.
Obama created this particular shite sandwich through federalizing loans IMHO.
If the feds got out and private industry were to get back into doing this, the interest rates would skyrocket due to increased risk of default as well as banks not being able to eat defaults as easily as the feds.
Obama created this particular shite sandwich through federalizing loans IMHO.
Posted on 2/4/22 at 9:04 am to bad93ex
Make the schools co-signers to any loans.
If the borrower defaults, the school has to pay back the lender.
If the borrower defaults, the school has to pay back the lender.
Posted on 2/4/22 at 9:04 am to Displaced
quote:
If you drop your student loans in bankruptcy, should you surrender all evidence that you ever attended college?
The entire point of getting rid of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act is you will get responsible borrowers.
If banks did not have the luxury of shedding risk to the federal government for student lending and had to burden the risk like with every loan in the business world, they would only lend to students that meet their risk profile to pay back the loans.
This is the way it should be. But as usual when the federal government steps in the frick things up. The entire student loan/lender equation is fricked up because of the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act.
Posted on 2/4/22 at 9:04 am to they call me horse
quote:
Here's an idea.
If you borrow money, pay back the money.
Posted on 2/4/22 at 9:05 am to teke184
quote:
Obama created this particular shite sandwich through federalizing loans IMHO.
"Everyone" should get a college degree working out a lot like "everyone" should own a home.
Posted on 2/4/22 at 9:06 am to MMauler
quote:
. If people are allowed to bankrupt their student loan debt, private lenders will go out of business.
No they won't.
Every loan in the business world right now except student loans can be shed through bankruptcy.
Banks will simply get better borrowers before they go out of business.
This post was edited on 2/4/22 at 9:11 am
Posted on 2/4/22 at 9:06 am to they call me horse
quote:
Here's an idea.
If you borrow money, pay back the money.
EXACTLY....when you sign your name on the line you and you alone are responsible. These loans should never have been approved in the first place and reminds me of the 2008-09 mortgage crisis where banks were forced to loan money to individuals who had no business getting the loan as they were never going to be able to keep up with the notes.
Posted on 2/4/22 at 9:08 am to teke184
quote:
Obama created this particular shite sandwich through federalizing loans IMHO.
It happened under GWB in 2005.
Posted on 2/4/22 at 9:08 am to bad93ex
quote:
"Everyone" should get a college degree working out a lot like "everyone" should own a home.
Morons go deep in debt for worthless degrees.
Morons buy more house than they can afford.
Why do I have to keep bailing out stupid people for their stupid decisions?
Posted on 2/4/22 at 9:08 am to MMauler
(no message)
This post was edited on 2/12/22 at 11:55 am
Posted on 2/4/22 at 9:11 am to they call me horse
quote:
Why do I have to keep bailing out stupid people for their stupid decisions?
Morons go in debt buying a lot of shite
Posted on 2/4/22 at 9:12 am to bad93ex
quote:
I agree but there needs to be some liability held against these universities for offering shite degrees.
Students choosing pragmatic, reasonable degrees from affordable institutions are far more likely to finish on time, get a higher paying job after graduation, and pay off their loans. It's not a huge issue in Louisiana, but there are hundreds of thousands of students in the midwest and northeast who would rather incur massive debt to attend a small private liberal arts college than go to a state school, especially one down south like Mississippi State or University of Alabama.
Some smaller private colleges would probably shut down if their weaker placement stats, higher tuition, and historical student debt burden were taken into account by lenders. Congress would never let that happen even though it would go a long way towards bursting this higher ed bubble that we are dealing with now.
This post was edited on 2/4/22 at 9:27 am
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