Re:The Student Loan Debt Crisis Is About to Get Worse
by TallGuyShort on Wednesday October 17, 2018 @06:13PM
(#18244301)
The lack of defaults on loans also takes away much of the incentive for the lenders to due any due diligence on the viability of your decision. They can lend and will get their money one way or another (except in extreme cases like your friend).
Re:The Student Loan Debt Crisis Is About to Get Worse
by dragonwriter on Wednesday October 17, 2018 @08:32PM
(#18245024)
> The lack of defaults on loans also takes away much of the incentive for the lenders to due any due diligence on the viability of your decision.
Since private government-guaranteed loans were discontinued, most private student lending dried up, so “lenders” here basically refers to the federal government.
He has no way to pay his loans, never will, and is unable to discharge them in bankruptcy.
Yeah, there is a "poor me" element to this. However bankruptcy laws exist for a reason, and denying people like him access to bankruptcy forces them into unproductive lives. That non-productivity makes all of us worse off in the long-run.