What's absurd is they don't have to take into account the ability of the student to pay back the loan, instead taking on an indentured servant for life. This distorts the market leading to higher tuition for everyone.

You can wipe out medical loans, which also have no assets to claim, with bankruptcy. Or do you think we need to make Repo Men a reality?

They can't claim assets for credit card debt either, and yet you can discharge those in bankruptcy.

Fortunately most of the debt is held by the US department of Education, and could easily be written off. (Minor inflationary effects asside).

So, your solution is to stick the taxpayers with the debt?

The actual costs of student loan forgiveness is fairly marginal compared to the economic benefits [1]. Further the federal government can write off debt without anyone ever having to pay for it. Student loans are created by the Treasury for the Department of Ed, repayment just gets dumped onto a balance sheet in the treasury that has no relationship to reality.

[1] http://www.levyinstitute.org/publications/the-macroeconomic-...

I feel like that's a small step towards rectifying the destruction of a generation. This country has too much inequality as it is.

It gives the lender little to no incentive to evaluate the marketability of the degree.

Same thing happens w8tg a bankrupt business...