Should we be able to discharge Student Loans w/ bankruptcy

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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Nickg415
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Joined: Mon May 14, 2012 4:31 pm

Should we be able to discharge Student Loans w/ bankruptcy

Postby Nickg415 » Fri Feb 08, 2013 1:38 pm

It seems like by allowing students to discharge student loans through bankruptcy (EDITED) , banks will have to engage in more risk analysis of each applicant before shelling out huge sums of money. This would in turn bring the law school and law market to its natural level of equilibrium. Obviously this would never happen but it would be interesting to see the effects.
Last edited by Nickg415 on Fri Feb 08, 2013 2:39 pm, edited 1 time in total.

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Drake014
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Re: Should we be able to default on Student Loans

Postby Drake014 » Fri Feb 08, 2013 1:40 pm

1. You can default on student loans as is.
2. An increased default rate has little effect on banks because the loans are backed by the government.
3. I think this is more of a Lounge discussion

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Nickg415
Posts: 290
Joined: Mon May 14, 2012 4:31 pm

Re: Should we be able to default on Student Loans

Postby Nickg415 » Fri Feb 08, 2013 2:41 pm

Drake014 wrote:1. You can default on student loans as is.
2. An increased default rate has little effect on banks because the loans are backed by the government.
3. I think this is more of a Lounge discussion


Sorry rushed the post and made a silly error. I edited to say what I meant to say. Instead of default, discharge through bankruptcy
Also I'm fine with moving this to the lounge but threw it in here for obvious reasons.




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