This is the reality of Joe Biden’s student loan bailout. pic.twitter.com/Q0PwqBnWpw
— RNC Research (@RNCResearch) August 29, 2022
Thought For the Day
- Donald R. McClarey
Donald R. McClarey
Cradle Catholic. Active in the pro-life movement since 1973. Father of three, one in Heaven, and happily married for 43 years. Small town lawyer and amateur historian. Former president of the board of directors of the local crisis pregnancy center for a decade.
Hey, Donald. Can you write a blog post about this? It’s really, really shameful.
https://twitter.com/DecentFilms/status/1565671005049294848/
The same with ACA: they didn’t shove it up our national posterior until after they shoved Obama back up our national posterior.
Big time rewarding bad behavior is what they do.
Budget busting, illegal, inflationary, unconstitutional. wrong . . .
Bussy, that’s sad about Steve especially since Biden is back peddling now…
Don, if I recall correctly, you had said something along the lines of being able to discharge student loan debt through bankruptcy. What is the rationale behind not being able to discharge student loan debt through bankruptcy and precisely how bankruptcy would be better?
Student Loans are effectively non-dsischargeable in bankruptcy now. They were made so by Congress initially in 1976, unless five years had expired since the loan repayment period began. With subsequent amendments it became increasingly harder to discharge student loan debt, and twenty-four years ago it became effectively impossible. The rationale was largely due to a handful of cases where potential high earners like doctors discharged their student loans. That has never struck me as a good reason to treat student loans that differently from other debt.
I would have student loans dischargeable in bankruptcy after ten years of a loan first being made, and subject to the usual rules. What that means is that if you are a high earner, you might have to do a Chapter 13 instead of a Chapter 7, and bankruptcy might not be an attractive, or possible, option at all. This would eliminate the cases where people simply are unable to pay, while making those who can pay some of the debt, pay a portion.
I would tie this with a reform of the entire student loan system. Colleges and Universities should be on the hook for fifty percent of the debt if their students default, there should be a cap on individual student loans and the mechanism by which parents are forced to take out Parent Plus loans for their adult children should be ended. All that Parent Plus loans is to allow colleges and universities to have an additional source of Federal dollars from families that in many cases cannot afford the tab, and to remove any incentive for these institutions to hold prices down in the present crazy system.