Which is to be expected, of course. I was recently reading an article on www.insidehighered.com about student loans, and if they should be considered for bankruptcy. Currently, they are not, unless you are blind and only have one limb. If they were, plenty of people would do it. I would probably just take out a crapload of loans and go get an MBA and a JD and another bachelor's degree just for the fun of it, all along knowing I would just declare bankruptcy at the end! I would probably get credit cards from every store that would allow me to have one and get a ton of clothes and nice furniture and stuff too. In other words, there is a serious negative incentive to allowing this. It should, however, be allowed under strict regulation and certain circumstances. And perhaps private loans shouldn't be given so willy-nilly? Maybe loan companies should have to interview students, and find out what their plan is for after college, before giving them tens of thousands of dollars. If they can't pass the interview or the underwriting, then they might choose to go to a cheaper school!
I'm getting off track. My purpose for writing here is in response to a comment that really angered me. IHE Reader posted a response to the article titled "can't call the repo man." IHE Reader presents a valid point, education is an asset that cannot be reclaimed. Maybe they could take away your diploma, and your educational records, but the knowledge and the experience will forever be yours, and you can still use it even after filing bankruptcy. This is unfair to the others who file bankruptcy based on other assets, because once their houses, cars, computers and boats are taken away, they can't use them anymore!!!
He or she goes on to say "Discharging student loans for those spendthrifts who stupidly get themselves into too much consumer debt shouldn't be an option."
WHAT? So shouldn't he be saying that bankruptcy shouldn't be an option for ANYONE? How is he saying it's okay for people to do it if they bought a yacht but not okay for someone who bought an education? The people with the houses and the boats are the stupid spendthrifts! An education is an investment that many people hope to get a return on, but unfortunatly, given the state of the economy and the unemployment rate, it is not working out for many people.
My other problem here is saying that an education can't be "repo-ed." This is correct, you can't just liquidate that college degree in order to make a settlement. This is a pretty stupid argument because you can't liquidate good times and fun memories either! Let's say instead of going to college I moved to Las Vegas and took out credit cards. I spent four years gambling, drinking, smoking, laying by the pool, eating expensive steaks, getting plastic surgery, going to the spa, etc. Then I grow up and realize dispite all the surgery, no one loves me enough to pay my rent or gas, and I am $50,000 in debt. What to do, what to do.. oh yea, declare bankruptcy!! None of these items can be "repo-ed" either, but for some reason this is forgivable but an education is not? Cool. Now I know there are laws about this kind of frivolous behavior and declaring bankruptcy as well, and I don't know exactly what they are, but I know there is a much better chance of being forgiven. I saw a show where a girl declared bankruptcy on $30,000 in credit cards. What was she buying? Clothes. And manicures. Did she have any assets to barter? Nope. Did she have fun shopping? Yes.
I'm all done. This is a sad world we live in.
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p.s. The first thing she did after leaving court was go shopping.
Shouldn't it be assumed that someone taking out a STUDENT loan has intended to better their lives, their job, their income, and would be more likely to pay it off than the person taking out a credit card for no reason?
It's all backwards.
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