re: Fed Chair Powell advocates making student loans dischargable in BK

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And you just screwed all of the graduates who repaid their loans as they agreed to do.

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I've repaid six figures in loans and wouldn't feel particularly "screwed" by this. Bankruptcy isn't fun, it's not something I would've pursued even if I'd been allowed.

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You are economically retarded.

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well it was half tongue in cheek.

but please explain...

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You will throwing millions more into the unemployment lines and shutting down 95% schools of higher education overnight. LSU would be forced to fire their entire staff and faculty & then forced to sell their assets just to field core departments.

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Apparently LSU did not exist prior to 1998

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Do you think the federal government would sit on its hands and keep interest rates the same? I imagine they would hike rates bigly if something like this passed.

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Okay, so the government raises the rates for all students bigly.

Every rate increase will eliminate another tranche of borrowers from being able to qualify for the loans.

So the unintended consequence of your "the government knows what's best for us" mentality is that fewer young people will go to college because they won't qualify for a loan.

All of this is moot if bankruptcy does not discharge a student's student loan obligation. That's why this stipulation was included in the current student loan law.

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"I'd be at a loss to explain why that should be the case,"

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Fine, make it dischargeable through bankruptcy, It will no longer be guaranteed and you'll need collateral to secure the loan.

Fewer people will go to college - fewer people walking around with degrees they can't use and debt they can't repay.

Sounds like a win-win.

You millenials shouldn't have gotten those gender studies degrees if you didn't want to die in debt

gender studies? yea I dont think that is the problem.

People can already apply for an income based repayment plan and have the balance forgiven after 25 years of on time payments for Federal loans. That's why I haven't refinanced mine.

The real problem is grad degrees (including law degrees, etc.). Undergraduate education is not out of reach for most students and wasn't prior to the '98 and '05 reforms. At most this would result in some marginal shifting of students from private schools to state schools, state schools to directional state schools, and so on down the line to community colleges and votechs.

But there's some serious credential inflation going on right now with grad degrees. 90% of the time these six-figure debt horror stories involve grad PLUS loans. It's not just MFAs and sociologists; STEM fields like biology have huge gluts of PhDs who can't get anything except postdoc or adjunct work for shite pay.

That's where the real oversupply problem is.

bitch please. I own three restaurants and bar. my wife is an attorney.

nice try though.