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A comment on Defrauded students to receive loan forgiveness. Parent comment

Re:Defrauded students to receive loan forgiveness by arcticbull on Friday March 19, 2021 @07:06PM (#26519074)
The difference is a college student has a negative net worth on graduation much of the time, an average credit score of 630, with no assets, no collateral, and absolutely nothing to lose from declaring bankruptcy. If you have $100K in liberal arts debt that's worth way more to discharge than 7 more years as an authorized user on your parents credit card.

On the other hand most other lending is collateralized, or even where not collateralized, the lender has a reasonable expectation of repayment or positive net worth.

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Re:Defrauded students to receive loan forgiveness by ska on Friday March 19, 2021 @07:34PM (#26519234)
Sure that's a reason that the risk profile is different, but it's not fundamental. The current system is deeply flawed because of the guarantee.

Maybe the answer is you can't discharge it through bankruptcy for a certain number of years (e.g. 10?). But also, it shouldn't be 6 figures.

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