Appears you can under undue hardship, but that is rare. So, looks like you found the the main issue with student loans. We need to recend that law/rule or pass a law that you can default and discharge student loans in regular Chapter 7 bankruptcy and I guarantee students will not be getting all this "free" money and making bad decisions anymore. Government screws things up everytime.
Appears you can under undue hardship, but that is rare. So, looks like you found the the main issue with student loans. We need to recend that law/rule or pass a law that you can default and discharge student loans in regular Chapter 7 bankruptcy and I guarantee students will not be getting all this "free" money and making bad decisions anymore. Government screws things up everytime.
It is the lender's responsibility to vet the borrower and it is the borrowers responsibility to pay the debt. These "students" are adults, they signed the loan agreement, they owe the money. So, if they cannot pay the unsecured debt, simply declare bankruptcy. It's not like we have debtors prison, there not going to jail. The lender made a bad loan, if enough people do this then the lenders will get stricter on loans and money supply will dry up. Morally though they should pay the loan, but its the lender who said this philosophy major is getting a masters in comparative literature, this is a good deal we should lend him more money.