arizonaconservativegal:

tilthat:

TIL that skyrocketing college tuition prices began in 2005, when Congress passed the Bankruptcy Abuse Prevention and Consumer Protection Act, that made it essentially impossible to discharge or declare bankruptcy on federal or private student loans.

via reddit.com

Massive student loan debt? Thank the feds!

Not only can you basically never get rid of your debt except by actually paying it off, if you were to die or otherwise stop paying tomorrow, you (and the taxpayers) are the only person it would hurt. The bank that loaned you the money is 100% protected from any loss by the federal government. That’s right, Uncle Sam (re: everyone who pays taxes) has to pick up the tab if you don’t pay, giving banks absolutely no reason to worry about handing an 18 year old kid $200k for an art degree. Meanwhile, that same 18 year old kid would never qualify for a $200k mortgage because that’s not federally protected, even though if the kid were to default, the bank would at least have the house as collateral. There is no collateral in a student loan.