What is to stop every single person from declaring BK the day after their graduation? 99% of kids graduate with massive debt. It would make perfect sense to declare BK and start fresh with your new degree. By the time you build up equity to buy a house (at least 5+ years later), your credit history will be fine.
Very good point and the reason is: We've raised a nation of morally bankrupct people with zero personal responsibility. My forecast is this: Probably the first point regarding student loans is they will no longer count on your credit score. Secpndly, one person is going to take his/her finger ot of the dyke of the damn and unpaid loans will be forgiven somehow most likely through BK. Obama keeps up with his fat cat bankers attitude and lowly college grads will want some of that free money that's passed around on the tbtf. If banks get free money why shouldn't I? Did you see the article referencing college text books, students are getting pissed and not buying all the books they need. Phase one - protest books prices. Let's ruin everyones credit with college loans. Who is going to consume with cash the mall. Nobody. Probably a couple years we'll have a credit crisis in the student loan dept.
it is very sweet interest of banks to give as many student loans as possible. it pumps up the prices of education. with higher and higher costs... new students have to take a loan, no other choice, its too pricey. its another baloon which will blow. even if 50% of loans will be unpaid... banks lose nothing- they created the loan money out of thin air!
What????? They need to collect money to loan money. What are you talking about? Only FED can print money
Thats the Propaganda talking, turn off the TV. You are not going to see everyperson declaring BK after they graduate. Do not let the Propaganda machine get into your head. We need to stop lemon socialism and having the government involved. Treat college loans as any other unsecured debt and no government backstops. College prices will plummet to realistic prices where people can actually afford to go to school without taking megaloans. Back in the day before lemon socialism got involved people were able to go to college and not pay insane hyper inflationary prices without having to take out loans either.