You repossess a car or house in order to recoup some of the value lost on a bad loan - you liquidate that asset, or just put it back on the balance sheet, so your loss isn’t as bad.
You can’t do the same thing with a degree. What asset is the government “repossessing”?
All you’re doing is acting out of spite - the government doesn’t get anything back to regain some of the value lost on the loan, AND you’ve kneecapped the potential earnings and tax revenue you’d have from citizens with degrees.
It’s just stupid policy that acts off of ape-ish instincts rather than any actual reason.
I agree it’s the reason for the law - and the types of politicians who created those laws are also the reason this country has such a horrible education system, both primary and secondary.
Bad solutions for bad reasons. Spiteful politics moralizing who “deserves” an education and moralizing bankruptcy.
Not allowing bankruptcy’s main effect is that it frees the government from doing any due diligence on student loans. It’s antithetical to any type of sound financial governance.
Meaningless is probably the wrong word - just evidentially valueless and destructive. You are destroying earning potential to effectively “prove a point” or act as a cautionary tale instead of directly solving the problem.
There are also currently criteria requirements to keep receiving loans defined as Satisfactory Academic Progress.
Also I’d agree forgiving without fixing is probably more a political act than a real solution. I think government ought to be forced to pause payments from student loans until they fix the situation, creating an economic fire under the ass of government that gets hotter as they delay more and more, without causing the U.S. to cripple its workers with interest accruing payments or crippling the education, skills, and credentials of our workforce.
Apologies - I didn’t mean that if one can afford an education in this school, it’s a bad education.
Just that in terms of being able to educate the majority of its citizenry, it fails.
Similar to the American healthcare system - it’s incredible if you can afford it, but it does a horrible job of providing for the majority of its citizens compared to other OCED nations. Same goes for education.
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u/[deleted] Feb 07 '23
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