Kohinoor wrote:Stringer Bell wrote:thickfreakness wrote:I don't think eliminating the government from the loan picture would help prospective law students. Just like a house and land are the collateral for a mortgage loan, the government's underwriting of educational lenders is a kind of collateral for those lenders.
For me, the earning power provided by the JD should be the collateral.
EDIT: I realize this would not be sufficient for 180k loans, since even with a good job defaulting could bve an attractive option. But if the principal was much lower, it likely would not be worthwhile to declare bankruptcy with a good income.
EDIT 2: Or maybe the bar could attach a stipulation that anyone who defaults on LS loans would be disbarred to reassure creditors
So... the government no longer guarantees loans but the bar does?
Not really. The bar will not secure the loans. They basically would just say that you can't practice if you default on LS debt. Someone could still default and the lending institution would be on the hook, that person just couldn't practice as a lawyer. This would eliminate the hazard of employeed attorneys saying "eff it, I'm not paying my loans".