Prior to 1998, student loans were dischargeable through bankruptcy, with the caveat that a former student had to wait seven years before she was eligible to use bankruptcy. This waiting period was meant to prevent students with high-earning jobs and hefty loan debt (i.e., med students) from abusing the system to free themselves of their enormous fiscal obligations immediately after graduating (the “moral hazard” argument). Interestingly, a similar rationale has been presented to argue against Obama’s call to expand the Income-Based Repayment system.
- Do We Hate Our Children? The Insane System That Turns Young Adults into Indentured Servants (rinf.com)
- BREAKINGVIEWS-Student loan rate hike is a D.C. dysfunction bonus (xe.com)
- Why Student Loans Are an Even Bigger Sham Than You Know (alternet.org)
- Do We Hate Our Children? The Insane System That Turns Young Adults into Indentured Servants (alternet.org)
- Money-Saving Tips For Families Of College Kids (dfw.cbslocal.com)