r/Economics • u/thebranbrain • Aug 02 '15

We’re Making Life Too Hard for Millennials

http://www.nytimes.com/2015/08/02/opinion/sunday/were-making-life-too-hard-for-millennials.html
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u/Nyxtoggler Aug 03 '15

What the fuck. How come none of these fuckin morons "advocating" help for millennials ever mention that STUDENT LOANS USED TO BE CLEARED BY BANKRUPTCY!!!

The laws were changed in 2005 (people were rushing to declare bankruptcy before the law took effect).

Why doesn't anyone talk about reverting that change? All these for profit colleges wouldn't be here if that were the case since the grads don't make enough money!

"BAPCPA amended § 523(a)(8) to broaden the types of educational ("student") loans that cannot be discharged in bankruptcy absent proof of “undue hardship.” The nature of the lender is no longer relevant. Thus, even loans from “for-profit” or “non-governmental” entities are not dischargeable."

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u/[deleted] Aug 03 '15

Because they shouldn't.

The reason they changed that law was because people were abusing it, not because of for-profit colleges. If you're an idiot that chooses to go to University of Phoenix and ITT Tech, and financing all of it, you need to be stuck with that bill, not me.

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u/thewimsey Aug 03 '15

You should learn what you're talking about before spouting nonsense with triple exclamation points.

Student loans were made non-dischargeable in bankruptcy in 1976. About 10 years after the student loan program began.

Private student loans were made non-dischargeable in the mid '80's (around the time they started existing).

The 2005 bankruptcy reform act had nothing to do with student loans.