[quote=livinincali][quote=bearishgurl]
I am completely against this. I know several people (early gen-x-ers and boomers) who have deliberately taken out $65K to $120K in student loans AFTER the age of 45. I have NO IDEA who any of them think would hire them in this day and age after they obtained their lofty credentials. In all cases, this was an utterly foolish idea, IMHO.
At any age, it is grossly unfair to those who kept their noses clean and only paid for the education their could afford in life. IOW, their “contemporaries” (who elected NOT to borrow for college) shouldn’t be “outgunned” in the job market by those who successfully “stole” a bachelor’s degree or even graduate degree!
A college “degree” is not something which can be repossessed. There is no collateral here. The benefits of a degree follow the former student until their deaths. Just like a personal injury award (a condition that follows the individual who sustained the injury until their death), the injury award/college debt legally belongs SOLELY to the affected person.[/quote]
These people will get bailed out at some point. Most likely the taxpayer as politicians look to buy irresponsible people votes. We did it with housing we’ll do it with college loans. It never ends.[/quote]
With housing, lenders who were bailed out at least ended up with something they could “sell,” (either thru SS, foreclosure or deed in lieu – in whatever condition it was in). And secured creditors such as RE lenders have the right to a release of the automatic stay a debtor acquires in BK.
Sallie Mae and private lenders who have to write off a student loan discharged in BK will have NOTHING.
There are NO TRUST DEEDS (or “mortgages,” in other states) filed on student loans because there is NO COLLATERAL given.
