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The right answer to the student loan crisis: student loans must once again be dischargable in bankruptcy just like all other debt


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2023 Jul 1, 1:17pm   2,884 views  56 comments

by Patrick   ➕follow (60)   💰tip   ignore  

While it's true that the personal cost for bad borrowing decisions should not be pushed onto taxpayers, much lending is also predatory and always has been, exploiting ignorance about how quickly compound interest accrues.

I was working at Wells Fargo in I think 2006 when student loan debt was made non-dischargable as a gift to banks and their lobbyists. Even then I thought that it was unfair to make this one kind of debt especially onerous.

And this gift to the banks has had the desired effect of trapping millions of naive students with debt for life, debt that a lot of them can never realistically hope to repay.

My argument is that student loan debt should be treated like any other debt, as the Constitution has this:


To establish an uniform Rule of Naturalization, and uniform Laws on the subject of Bankruptcies throughout the United States


One could argue that they meant uniform across states, but one could also argue that they meant uniform across all kinds of debt.

So I would support a Supreme Court decision which makes student debt once again like any other kind of debt.

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53   GNL   2024 Aug 29, 8:13pm  

NewGuy says

The exception is medical and law which are highly protected by regulations so you gotta spend 2-4 extra years wasting your time before you can be of actual use. But anyways, those professions are on the way out.

Medical and Law professions are on the way out?
54   WookieMan   2024 Aug 30, 12:42am  

NewGuy says

Student loans are ridiculous. With the internet, anyone should be able to get a bachelor level education for less then 1K.

It's not even bachelor level. It's learning a skill. You have to pay for things you're not interested in to get the degree you're interested in. This is why trade schools are going to make a killing in the decades upcoming.

My wife's cousin did a stint in the national guard and got his welding certificate. He's 23 and will probably make more than most college grads.

GNL says

Medical and Law professions are on the way out?

Yes. Have a seizure and try to find a neurologist. Near a year deep in my ordeal. I'm technically not supposed to drive a vehicle. It's impossible to get an appointment. Got lucky early on right after it and got my initial appointment. Then took me 7 months to get another appointment. It's not worth it to get in the medical field. Maybe nursing I suppose which you can do at a community college. It's not worth the time or money to be a doctor anymore. They don't pay that well. Not joking either.

Lawyers will stick around. I don't see as many getting into it now though. Even if you have a paralegal on staff, it's annoying work. It's miserable. My dad was and sister is a lawyer. Your average lawyer is not a partner in some firm where it's just wine and dine clients. Party, drink and do coke making $1M/yr. Usually they make $90-150k/yr. And unless you see their tax returns, most are liars, that's their job.
55   NewGuy   2024 Aug 30, 6:12am  

The only reason why doctors or lawyers exist is due to legal protectionism. However, for medical especially, it’s too expensive and so the profession will be forced to modernize.

In 10 years you’ll be able to chat with an AI, get diagnosed, and get your prescriptions. Nurses will do most in person examinations guided by AI. Robots will do most surgery. There will still be a few high level specialists doctors, but there won’t be a ton of those positions and anyways, most doctors aren’t smart enough for that anyway.

As far as lawyers, AI will write and examine most legal documents. They will also advise on most legal issues and do research. This is 90% of what lawyers do. You still need to have trial lawyers and judges, but the huge law firms backing the trial lawyers will be gone.

Basically we are headed for a world where unless you are the top 1% of your medical or legal class, your job is gone.
56   zzyzzx   2024 Aug 30, 6:36am  

WookieMan says

's not worth the time or money to be a doctor anymore. They don't pay that well. Not joking either.


For example?

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