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Why did Congress make student loans non-dischargeable?
In a word, lobbying.
Before there was an exception to discharge, less than 1% of student loans were discharged in bankruptcy. But lenders raised concerns about the potential for moral hazard (students discharging their debts soon after graduation), without providing any evidence that this was a problem. First there was an exception made for government loans and loans made by nonprofit institutions of higher education, with waiting periods that were gradually lengthened and ultimately eliminated in favor of complete nondischargeability (except in cases of undue hardship, a very harsh standard). Then in the 1980s commercial lenders succeeded in getting the words "of higher education" struck from the law, allowing an exception to discharge for commercial loans so long as a nonprofit was somehow involved in making the loans. This lead to the creation of nonprofit student loan guarantors. Then in 2005 all qualified education loans were excepted from discharge, even those that do not have a nonprofit involved in making the loans.
The irony is that TERI, a nonprofit guarantor of private student loans, was able to file for bankruptcy while the borrowers of the loans they guaranteed are not eligible for a bankruptcy discharge.
drB6 saysmell says4,1,2,3
4,2,3,1
4,2,3,1
So your dick has eyes.
Don't be so peculiar! Buy 4 bags & go for it.
Buy 1 bag & go for it!
RC2006 saysdrB6 saysmell says4,1,2,3
4,2,3,1
4,2,3,1
Fellas, you guys really need to get out of Uncle Sam.
Forget about Brazil, just 5 hours from Boston, there are plenty of chicks like that, but perhaps, even a bit better looking in Montreal QC where a number of college gals are into the escorting business.
I'm spoken for already
mell saysI'm spoken for already
Here's the life ...
Have a sip,
Enjoy the sites and sensations ...
And some Rock 'n Roll ...
www.youtube.com/embed/U4z8Aze16z8
This is the Rin-Wah Way!
The reason they are "non-dischargeable" in bankruptcy is that no bank it its right mind would offer students loans if all the student had to do is declare bankruptcy soon after graduation. These easy loans were needed to spare colleges the burden of cutting costs.
If you’re one of the 44 million Americans carrying some of the estimated $1.3 trillion worth of student loan debt circulating around the U.S., you may be in luck.
On Tuesday, truTV is set debut a new game show called “Paid Off,” which is being pegged as a classic trivia game show with a "Sallie Mae twist.”
The 16-episode series hosted by comedian Michael Torpey will give three college debt-carrying contestants – who are mostly in their late 20s or early 30s – a chance to wipe away 100% of their loans. The show, however, would not specify how much debt they are willing to clear, but some contestants do have loans as high as $50,000, according to the Washington Post.
The show, which debuts Tuesday, said it will “test the depth of their degrees in a fun, fast paced trivia gameshow” style.
Leslie Goldman, senior vice president for original programming and development for truTV, said that she believes the show will resonate with the network’s target demo of viewers as well.
“It speaks directly to our audience,” Goldman told The Atlanta Journal-Constitution. “This debt is holding people back. It’s keeping them from buying homes, getting married, having kids.”
According to data compiled last year by the Federal Reserve Bank of New York, more than 16 million Americans owe $25,000 or more of student loan debt.
https://www.foxbusiness.com/features/this-new-game-show-will-pay-off-your-student-loan-debt