The Biden administration announced it would automatically cancel education debt for 804,000 borrowers, for a total of $39 billion in relief.
The Biden administration announced it would automatically cancel education debt for 804,000 borrowers, for a total of $39 billion in relief.
They should just allow bankruptcy to eliminate student debt like other debt. We have debt amnesty for the needy under virtually any other circumstance except this one.
People go “but people will just go to college then declare bankruptcy!” – I mean, they could do the same for medical debt but most people want to have a credit card, a car, or a mortgage in 7 years if they’re on the path to the middle or upper class so most people try to pay their debt.
Using that process also solves the problem of taking money from the poor who work and never went to college and potentially handing it to the rich who just havent paid off their student loans yet.
I want to agree but at the same time can see a major flaw that we need to think about and fix.in a fair way.
Other loans assess the person taking it out and their ability to repay. Under that assesment who would loan to students who have no job yet (I know both sides are being promised college is good for pay). If you didn’t immediately get a job out of college then you go bankrupt and they can’t reposes the knowledge and so the price would have to go up for those that do get good job and don’t drop out and go bankrupt.