Thanks GOP. Parent's Of Deceased Children Inherit Their Student Loan Debt.

[Orrex]

31. Ergo:

Last edited Wed Jun 8, 2016, 07:54 AM - Edit history (1)

Since there is currently no real risk of default, interest rates should be zero or close to zero. All student loan debt accruing interest at greater than zero percent (or even pegged to the inflation rate) should be dischargable via bankrupcty. The loan principal would still have to be repaid, but people could escape the crushing and destructive weight of multiply compounded interest and the aggressive fee structure.

I don't have a good feel for what the increase would be, but in any case, the net result would be fewer students able to afford college.

They can't afford it now, either. I don't see how a lifetime of student loan debtis better than a lifetime without student loan debt. If the past decade has told us anything, it's that a degree is no guarantee of employability. If, on average, a degree gets you nothing other than six-figure debt, you're better off without it.

But this, too, is a matter of blaming the victim. If universities and lenders didn't work together to up the ante year after year--at many times the rate of inflation--we wouldn't be facing this national catastrophe. Let the schools and lenders suffer the risk that they've so cheerfully outsourced to the borrowers.

At the very least, the lenders should be required to provide detailed and comprehensible amortization schedules for student loans, so that the borrowers have a chance to understand how one semester can turn in to $75K in inescapable debt.