
Obama Administration Hits Back at Student Debtors Seeking Relief - cryoshon
http://www.bloomberg.com/news/articles/2015-10-14/obama-administration-hits-back-at-student-debtors-seeking-relief
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cryoshon
I am always banging the "student loan debt is a big anchor holding the economy
down" drum, and so this latest bit is especially disappointing for me.

The man in the article is retirement age, unemployed, and STILL cannot
discharge his (ballooning out of control) student loan debt via bankruptcy or
otherwise. The government is fighting to make this harder-- fighting to
protect the funneling of the young generation's wealth directly to those who
have far too much already.

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roymurdock
Sorry man, but I can't agree with you on this one.

The guy took out student loans for 3 (!) of his children on a manufacturing
job. He knew the risks when he took the loans.

In fact, without knowing the particulars of the case, it seems like he kept
the loans in his name because he believed that if he was unemployed and of
retirement age, he might be able to discharge their debt through his
bankruptcy. Allowing this sort of debt discharge would create a moral hazard
that would seriously pervert debt/degree decisions.

Ultimately, his kids should be the paying off the debt, and it should be on
their balance sheets, not his. They are receiving the benefits of the degrees,
they are of working age, they should be paying down the debt.

