Judge rules that student loan debt is dischargeable in bankruptcy

Re:Judge rules that student loan debt is dischargeable in ba... by gnicholas on Monday January 13, 2020 @03:35AM (#22032810)

> 1. If it becomes possible to get out of student debt through bankruptcy, then there must be additional collateral posted by the debtors.

I don't think we'd see an increase in collateral as an increase in interest rates, to account for the risk of non-collection. This would likely result in STEM and highly-qualified students lobbying to have interest rates take into account declared major or GPA or some such thing.

But in general, we would still see your #2 as a consequence.

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Re:Judge rules that student loan debt is dischargeable in ba... by oceanplexian on Monday January 13, 2020 @03:56AM (#22032896)

> This would likely result in STEM and highly-qualified students lobbying to have interest rates take into account declared major or GPA or some such thing.

I think you're assuming that lenders care what kind of degree you have. Someone who takes a few gap years to establish savings and credit will end up with better interests rates. As it should be. Kids should rack up a few years in the real world before they drop 80-200k and ruin their lives with debt.

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Re:Judge rules that student loan debt is dischargeable in ba... by pjc50 on Monday January 13, 2020 @04:41AM (#22033091)

If you want to be a software engineer in the high-paid zone, and are forced to delay a year, how much does that cost you in earnings?

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