Re:Taxing Mechanical Engineers and Subsidizing Drama Majors
by _-david-_ on Monday September 19, 2022 @12:08PM
(#32900218)
I'm a bit conflicted on this. With regular bankruptcy the loaner can take possession of the item you bought. With education the bank can't take your degree, knowledge, network and whatever else you gained from university. I'm not saying this shouldn't be a thing, but it would encourage people with no real property to declare bankruptcy even if they could pay it off.
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Re:Taxing Mechanical Engineers and Subsidizing Drama Majors
by allisdust on Monday September 19, 2022 @12:20PM
(#32900399)
Not true for unsecured loans and even for secured loans there is no guarantee that the security provided will cover the loan. Which is why the probability of a default is a variable while giving loans. By removing bankruptcy option, government is encouraging subprime loans in education.
Re:Taxing Mechanical Engineers and Subsidizing Drama Majors
by Turing_Machine on Monday September 19, 2022 @12:41PM
(#32900674)
> With regular bankruptcy the loaner can take possession of the item you bought.
If it's worth anything, which it may not be.
I'd bet the average amount collected on, say, SBA loans for small businesses is pennies on the dollar, at best.
It will be interesting to see what happens with FHA/VA loans when those go massively underwater oh...about a year from now.