If all the #$%$ who took out home loans paid as agreed we would not have had the global financial debacle.
As for student loans, there is no way bkr should shield borrowers... if you don't intend to pay the lender back, don't borrow the money!
The colonists had it correct -- take all of the scoundrels assets then put the put the deadbeats in shackles and throw eggs at them, then throw them in debtors/schlepps prison.
The real answer for SLM and govt entitlement it represents is to say SLM loans are only usable at public universities... #$%$ that taxpayers and parents who don't qualify for financial aid should be funding elite private school educations for folks like Michelle who then get up there and say the country has never done anything she is proud of except to nominate her husband.
Because no one would lend money to students if they could go bankrupt. It helps keep college costs up by making loans for college easy; just like Fannie Mae caused a property bubble, the government and SLM has created a bubble in college prices.
Exactly, the Government is the cause of another bubble, to go with the housing bubble and the bonds/treasury bubble. How can the interest be 3% on a 30 year bond when there is no way the gov can pay its 60 Trillion in obligations.
Is this a serious question?? Why doesn't the federal gov't allow you to discharge your debt?? Do you think the IRS should also discharge all your back taxes?
READ THE CONTRACT BEFORE YOU TAKE A FEDERAL STUDENT LOAN. Private loans may be discharged, but federal student loans (stafford & perkins) will never go away. Oh yea, and any collection agency the feds hire have access to all your records, remember YOU provided them references, they have your SSN, you can run from the feds but you can't hide. The schools hire collection agency for defaulted perkins loans, those are the real sharks.
It also keeps interest rates down for student borrowers. Think about it...if lenders knew the money loaned would not get returned to them don't you think that lender would charge more interest for the risk? All things considered interest rates on student loans are not that high. If the OWS crowd has a beef why don't the students go after the universities for charging so much in tuition? Here's a starter list: college presidents making a million dollars in some cases, professors who teach one class and then go on sabatical, over the top facilities like country club quality work out facilities, endowment funds that hardly distribute any money out to middle class students, athletic scholarships for every ridiculous sport - isn't college intended to educate or is it to train fencers and golfers.
The problem with higher education is not the lenders, but rather it is the out of control university system that can't control its costs.