Should student loans be dischargeable in bankruptcy court?

[Fr3shjive]

As you know student debt has been in the news a lot lately because of all the OWS protests. While I certainly don't think that you're entitled to a free education I also don't think that you should be saddled with debt for the rest of your life because of poor choices you made in your teen and early 20s. Every other form of debt can be discharged in bankruptcy court except for student debt, why shouldn't that be included?

What do you think RPFs: should student debt be eligible to be discharged in BK court?

[satchelmcqueen]

thats a toughy!

on one hand i think a person should pay any and all debts they owe just because its being responsible. however hardships do occur and there should be a way to get help in some form or another, maybe charity based.

on the other hand, wall street got bailed out on massive waste and fraud type debt so if its good enough for them, then student loans based on that should be up for bankruptcy court.

[Danke]

Jubilee, the Christian thing to do.

[Sematary]

As you know student debt has been in the news a lot lately because of all the OWS protests. While certainly dont think that you're entitled to a free education I also dont think that you shoud be saddled with debt for the rest of your life because of poor choices you made in your teen and early 20s. Every other form of debt can be discharged in bankruptcy court except for student debt, why shouldn't that be included?

What do you think RPFs, do you think student debt should be eligible to be discharged in BK court?

They could have done what my two oldest children did - Join the military and EARN their education!

[CMoore]

Of course they should be dischargeable. The whole idea of filing for bankruptcy protection is to get a fresh start. There are so many exceptions to discharge today that the fresh start is moribund. In 2005 the bankruptcy laws underwent major changes making it harder for everyone to file. It could be argued that the unavailability of bankruptcy relief is one of the reasons we are so choked on debt today. Even Ron Paul says we must liquidate debt. Well that is what bankruptcy does. It liquidates debt. With the stroke of a gavel, debt just disappears. I have heard it speculated that the changes in the laws in 2005 precipitated the housing crash. Of course that bubble would have popped eventually anyway, but when people could not discharge their credit card debts in a bankruptcy, they fell behind in their mortgages trying to keep up the credit card payments.

[cindy25]

student loans should be the same as any other debt, same for IRS and state/local govt debt

[jkr]

yes


PLEASE!

[jkr]

They could have done what my two oldest children did - Join the military and EARN their education!
sorry
selling my soul to go to school isn't my way

i think killing is wrong

[Keith and stuff]

As you know student debt has been in the news a lot lately because of all the OWS protests. While certainly dont think that you're entitled to a free education I also dont think that you shoud be saddled with debt for the rest of your life because of poor choices you made in your teen and early 20s. Every other form of debt can be discharged in bankruptcy court except for student debt, why shouldn't that be included?

What do you think RPFs, do you think student debt should be eligible to be discharged in BK court?

That rates should be increase 2-4% because they are way to low. Make the folks pay way more. They are totally screwing everyone over in the US.

For example, the NH government already paid the least into the NH government colleges this year. However, this year, NH cut government spending in government colleges by at least 45% this year, more than twice as much as any other state. Of course, the government shouldn't pay a penny in your college education. Oh, and I recommend you don't waste your time going to college, either.

[Keith and stuff]

Bailouts are always a 100% wrong. The vast majority of folks (somewhere around 80%) in the US are Christian. Of course, it goes against Christianity to not pay 100% of your debt off. But of course, government should completely get out of the student loan biz ASAP.

[Danke]

Bailouts are always a 100% wrong. The vast majority of folks (somewhere around 80%) in the US are Christian. Of course, it goes against Christianity to not pay 100% of your debt off. But of course, government should completely get out of the student loan biz ASAP.

lol, you are not a Christian are you?

[specsaregood]

Bailouts are always a 100% wrong. The vast majority of folks (somewhere around 80%) in the US are Christian. Of course, it goes against Christianity to not pay 100% of your debt off. But of course, government should completely get out of the student loan biz ASAP.

Who owns the debt? Just wondering.

[BattleFlag1776]

Who owns the debt? Just wondering.

Bingo! Since Uncle Sam provided me with that unsecured loan, he will happily allow me to put that obscure degree I have to good use in one of his military branches in order to settle that debt! My not being able to get the job I want, where I want to live, is not the same as my not being able to find a job at all.

As Thompson said: Buy the ticket, take the ride.

[specsaregood]

Bingo! Since Uncle Sam provided me with that unsecured loan,

where did the dirty uncle get the money to make the loan?

[Danke]

where did the dirty uncle get the money to make the loan?

It wasn't money. Just credit out of thin air, created by your signature. Lovely system we have.

[specsaregood]

It wasn't money. Just credit out of thin air, created by your signature. Lovely system we have.

thats what i thought. well since it was all monopoly money then might as well let them discharge it.

[Blueskies]

Yes.

Bankruptcy is an integral part to the free market. People forget this.

Lenders need to know that there's a risk they won't be repaid. Then, they will be more cautious with who they lend to.

Then you won't have a bunch of 22 year olds with $100k in debt and a sociology degree--because they never would've gotten lent the money in the first place.

[AceNZ]

It should definitely be possible for borrowers to discharge student loans through bankruptcy, just as with any other form of debt.

One of many problems that the current system has is that it removes the need for lenders to adequately qualify borrowers -- which was, of course, the whole idea in the first place. This encouraged more people to borrow. The idea was that "all education is good," and that somehow just because people had a degree, they would be able to quickly pay back their debt, no matter what type of degree or how much debt; it's economic nonsense.

By allowing student loans to be discharged through bankruptcy, and by not providing government guarantees, lenders would be forced to look at traditional borrower qualifications, which would be a Good Thing all around.

[VBRonPaulFan]

Yes.

Bankruptcy is an integral part to the free market. People forget this.

Lenders need to know that there's a risk they won't be repaid. Then, they will be more cautious with who they lend to.

Then you won't have a bunch of 22 year olds with $100k in debt and a sociology degree--because they never would've gotten lent the money in the first place.

A++ post, would read again.

The FedGov backing every jackass that wanted to go to school at 'the best possible school' (read: most expensive) for a shitty liberal arts degree in historical art, womans literature, etc, definitely helped to create this problem. When a lending company can make loans with 100% of its capital and all of it will be insured by some outside party - of course they are going to be extremely reckless with their lending.

[jack555]

They could have done what my two oldest children did - Join the military and EARN their education!

Yep killing brown people for free education is the new American way! We should all give it a try!

[AuH20]

I say let them sit in the crap that they voted for. They love education subsidized so let them experience firsthand the product of their own hand. Maybe they'll even learn something about the business cycle and how manipulative the government and their special interest cronies are.

[Kludge]

Remove gov't protections under bankruptcy altogether. Individual A can't pay Individual B, let Individual B decide how to handle it, including going to court for breach of contract. Corporation can't pay Bank? Let Bank call the loan up to 100% the value, and take the entirety of Corporation's assets when they can't raise the money for it, shareholders be damned. Loans/bills aren't some type of soft agreement where you agree to pay what you can, and they shouldn't be treated as such with gov't bankruptcy courts. Without the moral hazard created by bankruptcy laws, you can bet far fewer people will take loans out. Consumers constantly complain about banks, but in many cases, they have the bulk of unfair regulations in consumers' favor. In a free market, banks would be able to call loans in any amount for any reason if their contract permits. There wouldn't be a "bankruptcy protection" from a bank calling a corporation's or individual's loans. Banks simply aren't allowed to react to credit score changes as-is, and that's a big problem.

[Becker]

No, ideally I would prefer no debt to be dischargeable, and a person not allowed to have too much debts, no debt stacking...etc.

But student debts really shouldn't be dischargeable, because there's nothing to "take back".

I suppose a person can surrender his claim to an education, but the time, resources have been spent, to say he therefore walks away without paying for what he took, (however unreasonably overpriced) is an insult to people who chose to be responsible.

[EvilEngineer]

Sure, the debt can be liquidated.

They want their college debt erased, then in trade they need to lose their college degree.

If you are not going to pay the institution for you attended for your degree, they have no reason to honor your degree.

Or... just don't go into debt for college in the first place.

[Becker]

Sure, the debt can be liquidated.

They want their college debt erased, then in trade they need to lose their college degree.

If you are not going to pay the institution for you attended for your degree, they have no reason to honor your degree.

Or... just don't go into debt for college in the first place.

strange how nobody complains "they let me lend money, how dare they not turn me down when I wanted to go to college!"

[heavenlyboy34]

They could have done what my two oldest children did - Join the military and EARN their education!
That's not earned money. It's a transfer of wealth/bribery for soldier loyalty program. (every dollar the MIC spends comes from you and I)

[heavenlyboy34]

I say let them sit in the crap that they voted for. They love education subsidized so let them experience firsthand the product of their own hand. Maybe they'll even learn something about the business cycle and how manipulative the government and their special interest cronies are.
It was a scam to begin with, unlike a rational free market decision. I know if the market signals had been in place when I went a decade ago I would've skipped college altogether or found a different way of paying for it. It's possible that some people knew exactly what they were getting into, but the majority could not predict the inevitable crash. (it is not reasonable to expect an 18 year old to understand the business cycle and how markets work) The student loan business reminds me more of usury/predatory lending than a legitimate loan. You don't even have to put down any collateral for the loan.

[heavenlyboy34]

In regards to the OP, college debt should be dischargeable like other debt. (This would give lenders incentive to loan responsibly as well)

[Becker]

In regards to the OP, college debt should be dischargeable like other debt. (This would give lenders incentive to loan responsibly as well)

every other debt, takes back the collateral, am I wrong?

[Fr3shjive]

In regards to the OP, college debt should be dischargeable like other debt. (This would give lenders incentive to loan responsibly as well)

I agree. I just wanted to pose the question to RPFs. The tightening of lending standards would mean less money, which means tuition costs would fall too. It doesn't mean that people wouldn't be able to go to school they just wouldn't be able to finance as much as they want under the guise of going to school. Unfortunately they may need to go to a community college and a state school instead of some 50k a year liberal arts school.

[Fr3shjive]

every other debt, takes back the collateral, am I wrong?
A lot of debt is unsecured. Then again, unsecured debt has a much higher interest rate.

[Rael]

Yes.

[enoch150]

The reason student loan debt can't be discharged is because kids were borrowing money to get expensive degrees in fields that paid a lot of money and then filing for bankruptcy right out of college, before they got a job.

At that time, lenders probably wouldn't loan any money unless a kid was getting a degree that was worth something. Now that it can't be discharged, lenders don't care if kids are getting a degree in a field that will allow them to pay off the loan.

A compromise position might be that the loan can't be discharged for, say 15 years and for loans in default, 10% of your wages can be attached until that time.

[Becker]

A lot of debt is unsecured. Then again, unsecured debt has a much higher interest rate.

whats an unsecured, dischargeable debt?

[Becker]

The reason student loan debt can't be discharged is because kids were borrowing money to get expensive degrees in fields that paid a lot of money and then filing for bankruptcy right out of college, before they got a job.

At that time, lenders probably wouldn't loan any money unless a kid was getting a degree that was worth something. Now that it can't be discharged, lenders don't care if kids are getting a degree in a field that will allow them to pay off the loan.

A compromise position might be that the loan can't be discharged for, say 15 years and for loans in default, 10% of your wages can be attached until that time.

even if a degree was worth something, what's stopping one from abusing bankruptcy, even if they could afford to pay it back?

[nobody's_hero]

Yes, the bankruptcy option should exist. We have this irrational fear of bankruptcy in this country, and we've somehow bought into the belief that we should be responsible and repay our debt. In most circumstances, that would be true. We are not in most circumstances, however, in that debt does not result from a borrowing of someone else's savings.

Our debt under the Federal Reserve system is based on . . . debt. It's healthy for everyone if this stuff gets liquidated back into the thin air it came from.

[Revolution9]

Then you won't have a bunch of 22 year olds with $100k in debt and a sociology degree--because they never would've gotten lent the money in the first place.

They would learn more, better, faster with a 400USD bag of kind and a few good books, take a calligraphy class and construct their own diploma. Sociology, psych and "liberal arts" (not the Quadrivium) major degrees are trustafarian one armed time bandits. They produce "problem" solvers who don't have a frakkin' clue because the coddled never lived a real life.

Rev9

[angelatc]

Crybabies.

The Gimme gimme gimme generation.

[angelatc]

whats an unsecured, dischargeable debt? Credit card debt.

[qh4dotcom]

They could have done what my two oldest children did - Join the military and EARN their education!

And who's going to pay for their education? The country can't afford it. I mean who cares about runaway inflation, billions of government debt and a massive tax burden on the next generation? It's all free right? (sarcasm).

Come on man, you really need to watch this video if you think it's such a good idea to get the government involved in education and let them pay for college for the military. Wake up
http://www.youtube.com/watch?v=AIcfMMVcYZg

[bobbyw24]

Every other form of debt can be discharged in bankruptcy court except for student debt, why shouldn't that be included?

NOT true.

The Bankruptcy Code lists 19 categories of debt that may not be discharged in bankruptcy--things like recent income taxes, child support, alimony, condominium association fees, damages caused while driving dunk, etc.

Exceptions to discharge

(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt—

http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000523----000-.html

[Brian in Maryland]

They could have done what my two oldest children did - Join the military and EARN their education!

I wish I could get the tax payers to pay for my education. I've never been able to afford it myself, but I have been paying for your kids. Lovely. I've EARNED everything I have ever had, without robbing my fellow citizens.

[specsaregood]

Crybabies.
The Gimme gimme gimme generation.

I used to be with you; but now I'm leaning the other way. The loans were made with funny-money-printed-at-a whim. They didn't actually borrow real wealth. So screw it, delete the "loans" they are just imaginary digits anyways.

[frodus24]

Here is my big issue with this.

I have worked in financial aid for the past 6 years or so. A colleague of mine who works in the office of financial aid received her undergraduate and master's degree for free at the institution that employs us both. This is a pretty good deal with the exception of having to pay for books. As an undergraduate, she received a total of $16,241.00 in Pell Grant(free money) funds to help cover living expenses and books. She is a high need student, married with 2 children and makes about $30,000 a year in compensation. Her husband is not employed due to laziness.

That sounds great doesn't it? Here is the kicker. Well, she also borrowed the maximum amount of loan money each year which is perfectly legal. As long as it fit in the budget, she could borrow money to use for living expenses. The grand total is $55,000.00 over 6 years. Well, for 6 years this person took a couple of vacations every year with her family such as a cruise. She owns a nice TV, laptop and other things. Recently, we were talking about paying back loans and she stated that she is not going to pay any of the money back. I seriously had to hold back on going off on her. She bluntly stated that she can't afford to pay back the loans.

You see, I do not feel the least bit sorry for this person at all. She lives pay check to pay check. She complains all of the time. These are the types of people that should not be allowed to have their debt wiped out. There are other students that I know that do the same thing and it pisses me off to no end. I am still paying on my loans and I intend to pay them off.

Discharging student loans should be done on a case by case basis. But for this person, if she ever tried to do this, I would say HELL NO. She knew exactly what she was doing.

[heavenlyboy34]

Crybabies.

The Gimme gimme gimme generation.
:rolleyes: Collectivist :P WTF, "crybabies"? Nonsense. Other people in similar situations can get rid of debt in bankruptcy. We're only asking for similar fair treatment and an end to predatory lending. (yes, aside from the exceptions mentioned in a previous post) I'm tempted to neg rep you, but I'm in a generous mood today. :)


I used to be with you; but now I'm leaning the other way. The loans were made with funny-money-printed-at-a whim. They didn't actually borrow real wealth. So screw it, delete the "loans" they are just imaginary digits anyways.
Yep, that's it right there.^^ Moral hazard in action.

[heavenlyboy34]

Here is my big issue with this.

I have worked in financial aid for the past 6 years or so. A colleague of mine who works in the office of financial aid received her undergraduate and master's degree for free at the institution that employs us both. This is a pretty good deal with the exception of having to pay for books. As an undergraduate, she received a total of $16,241.00 in Pell Grant(free money) funds to help cover living expenses and books. She is a high need student, married with 2 children and makes about $30,000 a year in compensation. Her husband is not employed due to laziness.

That sounds great doesn't it? Here is the kicker. Well, she also borrowed the maximum amount of loan money each year which is perfectly legal. As long as it fit in the budget, she could borrow money to use for living expenses. The grand total is $55,000.00 over 6 years. Well, for 6 years this person took a couple of vacations every year with her family such as a cruise. She owns a nice TV, laptop and other things. Recently, we were talking about paying back loans and she stated that she is not going to pay any of the money back. I seriously had to hold back on going off on her. She bluntly stated that she can't afford to pay back the loans.

You see, I do not feel the least bit sorry for this person at all. She lives pay check to pay check. She complains all of the time. These are the types of people that should not be allowed to have their debt wiped out. There are other students that I know that do the same thing and it pisses me off to no end. I am still paying on my loans and I intend to pay them off.

Discharging student loans should be done on a case by case basis. But for this person, if she ever tried to do this, I would say HELL NO. She knew exactly what she was doing.
This is a reasonable compromise, IMO. :)

[Becker]

Credit card debt.

what is the limit one can owe on credit card debt at a time?

$50k? $100k?

[Becker]

NOT true.

The Bankruptcy Code lists 19 categories of debt that may not be discharged in bankruptcy--things like recent income taxes, child support, alimony, condominium association fees, damages caused while driving dunk, etc.

Exceptions to discharge

(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt—

http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000523----000-.html

thanks!

[nobody's_hero]

I used to be with you; but now I'm leaning the other way. The loans were made with funny-money-printed-at-a whim. They didn't actually borrow real wealth. So screw it, delete the "loans" they are just imaginary digits anyways.

My thoughts exactly. It's a bit of a distortion to say that there's a 'debt' to be paid. We are repaying debt with debt. There's too much debt, everywhere. Hell, our currency itself is debt.


Our debt under the Federal Reserve system is based on . . . debt. It's healthy for everyone if this stuff gets liquidated back into the thin air it came from.

(I usually don't quote myself, and that felt . . . weird)

Now, if we had a gold-standard (if our currency was actually backed by something), and we were in the middle of this HUGE debt crisis, we'd have a very, very serious, very real problem. But odds are, with a gold standard, it would be very hard if not impossible to reach the dismal condition we're in now.

[Sematary]

Yep killing brown people for free education is the new American way! We should all give it a try!

What the HELL is with you people?
I thought our country was past this crap.
You sir, are an ASS

[Sematary]

That's not earned money. It's a transfer of wealth/bribery for soldier loyalty program. (every dollar the MIC spends comes from you and I)

Yep, for your security. Kiss my ass. You are going to sit on your soap box and disparage my children while you take your ideals and post them on the internet without having a clue what it takes for you to have RIGHT to do so?

[Sematary]

For every one of you who have chosen to make some snide comment about those who serve our nation in the military, you can all bite it. We may all agree that our wars of aggression are wrong but you still need a military because without it you wouldn't be free. You would be subservient, probably to the Chinese, by now. And to make an asinine statement that those who serve then go to school afterwards on a GI bill the government promised them is somehow "free" money - you can also bite it. My daughter spent a year in Iraq, a year in Germany and 8 years of her life in the military and she EARNED that education because that was the contract. Same for my son. I never took advantage of mine. I should have.

[Ranger29860]

Yep, for your security. Kiss my ass. You are going to sit on your soap box and disparage my children while you take your ideals and post them on the internet without having a clue what it takes for you to have RIGHT to do so?

I'm a vet on the new gi bill and i can tell you right now its a sham. I have seen people get the benefits for never being deployed. Not to mention It is a bribery program. The new gi bill came out right when the army was having recruiting problems. Support your children and there courage but don't put blinders on for what this is.

[Sematary]

I'm a vet on the new gi bill and i can tell you right now its a sham. I have seen people get the benefits for never being deployed. Not to mention It is a bribery program. The new gi bill came out right when the army was having recruiting problems. Support your children and there courage but don't put blinders on for what this is.

Exactly how is it a sham? The government made a CONTRACT with the people who serves in the nations' military. Deployed or not, it is a contract and must be fulfilled.
The alternative to this is that the youth of this nation could be (and probably WOULD be) subject to a draft. Personally, I prefer the current method.
But, to get back to my point, I'm just pissed at the attitude of people here on the subject of people in the military. Those people (including my children) are SACRIFICING for their country and what they get back is some of the bullshit that I've read on this thread? They deserve more respect than that.

[Ranger29860]

For every one of you who have chosen to make some snide comment about those who serve our nation in the military, you can all bite it. We may all agree that our wars of aggression are wrong but you still need a military because without it you wouldn't be free. You would be subservient, probably to the Chinese, by now. And to make an asinine statement that those who serve then go to school afterwards on a GI bill the government promised them is somehow "free" money - you can also bite it. My daughter spent a year in Iraq, a year in Germany and 8 years of her life in the military and she EARNED that education because that was the contract. Same for my son. I never took advantage of mine. I should have.

It is a good program i will not disagree with that. But it is free money plain and simple. Every soldier signs a contract. If your children are out now they would have to have been in before the new one came out. That would mean they did not sign up for it and probably paid into the old one. The new one was not in the contract and was later added as a bonus for soldiers that were already in. But they biggest reason for it was the FREE MONEY you get while out. Full BAH e-5 with dependent along with every cent of your college paid. Using this as a recruitment tool. I use the gi bill and i would be screwed if i didn't have it but i accept that it is free money. ESPECIALLY the BAH. This even isn't taking into account the pell grant soldiers can take and basically have 5-6k given to them yearly to do whatever with since they don't have to use it for college.

[Ranger29860]

Exactly how is it a sham? The government made a CONTRACT with the people who serves in the nations' military. Deployed or not, it is a contract and must be fulfilled.
The alternative to this is that the youth of this nation could be (and probably WOULD be) subject to a draft. Personally, I prefer the current method.
But, to get back to my point, I'm just pissed at the attitude of people here on the subject of people in the military. Those people (including my children) are SACRIFICING for their country and what they get back is some of the bullshit that I've read on this thread? They deserve more respect than that.

Its a sham because I and your children are held to that contract but the us government is not. The gi bill has been changed 3 times since i signed up for it under contract. But they don't care and change it anyway. That s how it is a sham.

May i ask if your children have been deployed? Cause i can tell you with first hand knowledge me and my friends were not sacrificing for our country over there. If you want to read up more on this attitude go to the Iraq Veterans Against the War site. This isn't meant to diminish the courage that is needed to join and deploy in the armed forces but it is just vets being honest.

[Sematary]

Yes, they were both deployed.

[Ranger29860]

Yes, they were both deployed.

I just ask people to be honest with each other even when family is involved. I doubt many here would say the Vietnam war was soldiers sacrificing for us. This is the same outlook many vets have. I believe this is one of the main reasons Ron Paul gets so many vets and active soldiers donations. We know its a scam and isn't worth dying for. Its sad i joined the Army right out of high school out of patriotism and was immediately given a reality check the minute i stepped foot in Iraq for my first deployment. Soldiers are not bad people as some have implied but it is against the army core value to stay in past your initial contract when it comes to the current wars. Integrity is doing the right thing no matter what. And the right thing right now is to get the hell out and not fight a war like this.

[qh4dotcom]

For every one of you who have chosen to make some snide comment about those who serve our nation in the military, you can all bite it. We may all agree that our wars of aggression are wrong but you still need a military because without it you wouldn't be free.

Ha Ha Ha...thanks for the laugh...Costa Rica does not have a military...why are Costa Ricans free then?
The Chinese are not that dumb to mess with the 2nd amendment rights of Americans.

[Pauls' Revere]

On the one hand I say yes, and on the other I say no. People should be able to at least refinance thier student loans more than once. If people can refinance a mortgage many times to thier benefit than why not a student loan? I don't get it. :confused:

[qh4dotcom]

The GI Bill has been a complete disaster...it's never a good idea to get the Federal government involved in education...anything that the Federal government touches becomes more expensive and quality goes down. Peter Schiff got asked about the GI bill and he explains
http://www.youtube.com/watch?v=AIcfMMVcYZg

[Sematary]

The GI Bill has been a complete disaster...it's never a good idea to get the Federal government involved in education...anything that the Federal government touches becomes more expensive and quality goes down. Peter Schiff got asked about the GI bill and he explains
http://www.youtube.com/watch?v=AIcfMMVcYZg

I understand but at least they EARNED it. If people don't want outrageous student loan payments, there IS an option.
Or, they could get a job at McDonalds and pay as they go. It might take longer but Community college isn't THAT bad.

[Meiun]

Bailouts are always a 100% wrong. The vast majority of folks (somewhere around 80%) in the US are Christian. Of course, it goes against Christianity to not pay 100% of your debt off. But of course, government should completely get out of the student loan biz ASAP.

I disagree. Even in hebrew law there was a way to dismiss your debt. Of course student loans should be discharged as part of a bankruptcy. The fact that they aren't sets the government up as a special class. That's the last thing we need. It is truly sad that our young people have to encumber such debt to get an education, but we know that the root cause of this isn't the cost, it's the devaluation of the dollar! Also, government involvement in private education in terms of student loans would not be necessary if the FED and the IRS were eliminated. Real dollars for real education.

[Ninja Homer]

When a contract is made for a student loan, the money does not exist. The Fed creates it out of thin air. Then the student pays it back with real money. Since there wasn't proper Consideration (http://en.wikipedia.org/wiki/Consideration) for the original contract, the contract should be ruled null & void.

Student loans & grants are the reason education costs are skyrocketing. Since you can't file bankruptcy on a student loan, banks will give them out to anybody. Since anybody can get a student loan, schools charge more for tuition. The more schools charge for tuition, the more banks will loan to students. It's kind of a circular inflation, and everybody wins except for the student and the tax payer.

[qh4dotcom]

I understand but at least they EARNED it. If people don't want outrageous student loan payments, there IS an option.
Or, they could get a job at McDonalds and pay as they go. It might take longer but Community college isn't THAT bad.

Let's see...your daughter went to Iraq, your daughter took an oath to defend the Constitution...the Constitution is very clear that your daughter was not supposed to go to Iraq without a declaration of war from Congress...and now you claim your daughter earned her education by disobeying the Constitution and the taxpayers have to pay for her breach of contract/disobedience of the Constitution...makes sense.