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taught_me_patience

(5,477 posts)

10. Student loans are unsecured loans given to young people with no credit history

Mon Jan 7, 2013, 01:27 PM

Jan 2013

The risk of default is so high that if these loans were able to be discharged in bankruptcy, it would be too expensive for most to get a loan (think 20-30% credit card interest rates or higher).

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Why isn't student loan debt dischargeable through bankruptcy? [View all] white_wolf Jan 2013 OP

because the student loan holders have good lobbyists who know where to contribute campaign funds. unblock Jan 2013 #1

this. KG Jan 2013 #6

Amen brother. yourout Jan 2013 #27

We have a winner! City Lights Jan 2013 #42

It's unsecured debt. intheflow Jan 2013 #2

Most debt dischargable through bankruptcy is unsecured. nt Lex Jan 2013 #3

Really? intheflow Jan 2013 #9

No, if you buy a car with a credit card that is still not secured. banned from Kos Jan 2013 #11

You buy cars with a credit card? Atman Jan 2013 #13

most car dealers will limit the amount you can put directly on a credit card unblock Jan 2013 #18

Thanks for the clarification. intheflow Jan 2013 #15

credit card debt would be a lot cheaper if it was secured. unblock Jan 2013 #14

Thanks. intheflow Jan 2013 #17

This Is Also Why You Should Never Take Out A Loan Against Your Home To Pay Your Credit Cards Yavin4 Jan 2013 #43

Really. Your understanding 180 degrees incorrect. nt Romulox Jan 2013 #39

So are credit cards and medical bills obamanut2012 Jan 2013 #24

I've always found that odd. LisaLynne Jan 2013 #4

The taxpayer is on the hook for it Yo_Mama Jan 2013 #45

Good question. Because doctors would declare bankruptcy after 12 years of school banned from Kos Jan 2013 #5

I think "quasi government" has a lot to do with it. Buns_of_Fire Jan 2013 #31

people used to BK on their NDSL loans in the 70's & maybe 80"S - elehhhhna Jan 2013 #35

Think of it from the lenders perspective... dkf Jan 2013 #7

Bingo. Atman Jan 2013 #12

There's truth to that, but I honestly think that after a set period of time, Sheldon Cooper Jan 2013 #22

Because the whole student loan system exists as part of a new form Jackpine Radical Jan 2013 #8

Student loans are unsecured loans given to young people with no credit history taught_me_patience Jan 2013 #10

Because that would enable... 99Forever Jan 2013 #16

Honestly, I'm just tired of everyone being at the mercy of the market. white_wolf Jan 2013 #23

You shouldn't be just tired... 99Forever Jan 2013 #29

Thank YOU! smirkymonkey Jan 2013 #34

A big part is the idiots running the universities joeglow3 Jan 2013 #48

debt enslavement datasuspect Jan 2013 #19

The bankruptcy laws were last written by banks lunatica Jan 2013 #20

However... FightForMichigan Jan 2013 #21

One explanation: Z_I_Peevey Jan 2013 #25

Student Loans Used to Be Able to Be Discharged Through Bankrruptcy kittypat Jan 2013 #26

Fine how about we make it a requirement you earn your degree before loans can be discharged? white_wolf Jan 2013 #28

Because a lot of students would take the calculated risk of staying under- or unemployed aikoaiko Jan 2013 #30

Because we've unofficially switched from debt to equity without admitting it Recursion Jan 2013 #32

That is an elegant and accurate way to phrase it n/t Yo_Mama Jan 2013 #41

Essential to turning higher education into a massive corporate welfare program, Egalitarian Thug Jan 2013 #33

It's because it's usually a government related loan. musical_soul Jan 2013 #36

This. ^^^ ParkieDem Jan 2013 #37

So are mortgages. Un-secured (under-secured) mortgage debt is dischargable. Romulox Jan 2013 #46

The idea was to discourage students from taking out loans that they knew they would never... slackmaster Jan 2013 #38

Well, a rising wave of student loan defaults caused Congress to make it non-dischargeable Yo_Mama Jan 2013 #40

Because America is "free market" and capitalist, and these loans represent the worst abuses of both Fire Walk With Me Jan 2013 #44

It's a way to trap naive 18 y.o.s into wage slavery before they even begin. nt Romulox Jan 2013 #47