Re:Judge rules that student loan debt is dischargeable in ba...
by dragonwriter on Sunday January 12, 2020 @06:05PM
(#22030327)
> First, the government is the lender for almost all student loans.
The protections for student loans predate the federal government excluding other lenders from federally subsidized loans; they existed when most student loans were from private lenders, both inside and outside the federally-subsidized loan programs.
> Second, the government makes loans almost without assessing creditworthiness.
It basically does so inversely to creditworthiness, since federal loans require applying for general student aid, and need-based aid is given on factors that correlate inversely with creditworthiness.
> Third, the government has an income based repayment system for student loans.
The government's contacted servicer for such loans actively (and even deceptively) steers borrowers away from such plans and into temporary deferments; this was a point being actively pursued prior to an openly borrower-hostile administration taking office.
The protections for student loans predate the federal government excluding other lenders from federally subsidized loans; they existed when most student loans were from private lenders, both inside and outside the federally-subsidized loan programs.
> Second, the government makes loans almost without assessing creditworthiness.
It basically does so inversely to creditworthiness, since federal loans require applying for general student aid, and need-based aid is given on factors that correlate inversely with creditworthiness.
> Third, the government has an income based repayment system for student loans.
The government's contacted servicer for such loans actively (and even deceptively) steers borrowers away from such plans and into temporary deferments; this was a point being actively pursued prior to an openly borrower-hostile administration taking office.