Re:The Student Loan Debt Crisis Is About to Get Worse
by Retric on Wednesday October 17, 2018 @12:20PM
(#18240570)
That's the bailout or not bailout question. We can also just let people discharge the loans without bailing out the people making the loans.
Currently, if someone dies broke after graduation the outstanding loans are paid back by the government. So, basically people are making risk free loans right now, changing that so they take some risk is an option.
IMO, loans should be dischargeable in bankruptcy 20 years after graduation. That would slightly increase the loan interest rate, but not cost taxpayers a dime. We might also see things like higher interest rates for getting an art degree which IMO is a useful feature.
Currently, if someone dies broke after graduation the outstanding loans are paid back by the government. So, basically people are making risk free loans right now, changing that so they take some risk is an option.
IMO, loans should be dischargeable in bankruptcy 20 years after graduation. That would slightly increase the loan interest rate, but not cost taxpayers a dime. We might also see things like higher interest rates for getting an art degree which IMO is a useful feature.