N.J. Forces Mom to Pay Son's Student Loans: Murder 'Does Not Meet Threshold for Loan Forgiveness'

[Orrex]

48. I've read about that, though it was before my borrowing time.

In much the same way that businesses can file Chapter 11 and recover more or less unscathed, wealthy student loan borrowers did (and would again) exploit the system for profit rather than for survival.

That might be offset by placing a cap on the dollar amount of student loans that can be discharged via bankruptcy, perhaps the amount that the average borrower incurs. That way a wealthy student can run up $275K in loans and have them wiped clean, but a student from a lower income background could escape $25K that might otherwise follow him for decades.

Alternatively, it the fees and interest could be cleared by bankruptcy while the principal remains intact and subject to repayment.

I must disclaim that this option would work particularly well for me: I borrowed a total of $20K, but after several years of payments went into default due to financial catastrophe during which I lost my job and our house. I came out of default as soon as I was able and have been paying for several years without interruption, and now I owe $19.8K, most of it due to fees and interest.

Incidentally, the soulless abominations at PHEAA were very sympathetic when I tried to plead my case: I told them (truthfully) that I'm the sole earner for a family of four and asked them for repayment options. They answered that I can either pay them $300 per month, or they can take $300 from me each month.

Lots of options...