Student loan debt has been in the news recently and is apparently the source of a lot of the nation’s debt crisis. According to an article with Times Union, there is efforts to reduce the interest on student loans to a fixed 4%.
I can’t remember what my percentage is, but this article made me wonder something….
Should bankruptcy wipe out student loans?
I have mixed feelings about this and wanted to ask what people thought. I may have a post to follow in the next few days with some ideas on how to decrease student loans in other ways.
But first –
Should we be able to wipe out student loans if we file bankruptcy? Would that help or hurt?
I’d say yes, after a reasonable time period. Individuals shouldn’t be punished for a bad job market, or for schools who promised them a career knowing it would likely not be there when they graduated, which unfortunately is the case for many people.
Exactly – sometimes the career program at the school makes or breaks your ability to get a career.
I do think bankruptcy should be able to wipe out student loans. Sometimes people are left with huge loans to payoff and no job prospects in sight. It becomes financially and emotionally frustrating.
It is! Sometimes you know that you will never be able to pay it back!