http://www.salon.com/2013/06/30/thanks_for_nothing_college/
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.
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