4 thoughts on “Biden’s Back-Door Student Debt Bailout”

1. Here’s my solution:
   1) Make student loans dischargeable in bankruptcy. Possibly require say 5 years between taking out the last loan and applying for bankruptcy.
   2) Condition loan approval based on what percentage of the college’s graduates default.
   Simple but very difficult to get passed because it allows less opportunity for graft.

   1. There is a reason student loans aren’t dischargeable by bankruptcy. Before that rule change, some people with high student loan debts (doctors and lawyers) got out of repaying their loan debt by declaring bankruptcy. Your proposed change would not stop that abuse, and if anything, it would let colleges raise their costs even more. After all, why would anyone care how high the costs are if they won’t have to worry about paying it back.

      1. Get the Feds out of that business, and make the colleges/universities the creditors for their students. So if a student defaults, it hurts the endowment fund. It would make the colleges/universities be a bit more selective over who they saddle with debt if they knew they might not get it back.

2. The federal student loan program is doing exactly what it was designed to do. It is strictly a money laundering operation, an in-kind contribution to leftwing activist organizations.

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