GiddyGap@lemmy.world to politics @lemmy.world · 2 years agoConservative groups sue to block Biden plan canceling $39 billion in student loansapnews.comexternal-linkmessage-square187fedilinkarrow-up1918arrow-down121
arrow-up1897arrow-down1external-linkConservative groups sue to block Biden plan canceling $39 billion in student loansapnews.comGiddyGap@lemmy.world to politics @lemmy.world · 2 years agomessage-square187fedilink
minus-squareMamertine@lemmy.worldlinkfedilinkarrow-up11arrow-down1·2 years agoStudent loans are intentionally excluded from bankruptcy because law students used to declare bankruptcy immediately upon graduating. They had tons of debt and no or very low income. The court usually discharged The debts. It wasn’t limited to lawyers. It’s just that the law students knew how to file fos bankruptcy, since bankruptcy law was part of law school. The banks lobbied Congress change the bankruptcy laws to prevent that from happening.
minus-squarelolcatnip@reddthat.comlinkfedilinkEnglisharrow-up9arrow-down1·2 years agoThey could have limited the restriction to just recent law grads, but they didn’t. Sure seems deliberately shitty to me.
minus-squareBluescluestoothpaste@sh.itjust.workslinkfedilinkarrow-up3·2 years agoWell sure, and the country did alright for 200+ years before this change. Since then, the student loan industry has become a monstrous disaster.
Student loans are intentionally excluded from bankruptcy because law students used to declare bankruptcy immediately upon graduating.
They had tons of debt and no or very low income. The court usually discharged The debts.
It wasn’t limited to lawyers. It’s just that the law students knew how to file fos bankruptcy, since bankruptcy law was part of law school.
The banks lobbied Congress change the bankruptcy laws to prevent that from happening.
They could have limited the restriction to just recent law grads, but they didn’t. Sure seems deliberately shitty to me.
It always is.
Well sure, and the country did alright for 200+ years before this change. Since then, the student loan industry has become a monstrous disaster.