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No, moral is to make student loans subject to regular bankrupcy. Student should be also able to get refound, if university misrepresents or lies about their job prospects!

Universities are business as any other!

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> No, moral is to make student loans subject to regular bankrupcy.

Aren't the issues that there is no collateral/nothing to repossess? What kind of issuer would give a 5 or 6 figure loan with no collateral and nothing to repossess?


If no one would issue a loan, that might suggest that these loans should not exist.

And maybe that tuition costs must go down so that they can still get students enrolled

That would be a reform I'd get behind.

At the same time, it's still a bad use of funds, and lenders likely wouldn't have the ability to discriminate based on likelihood of bankruptcy or success in an academic program. So it just shifts costs from the student unlikely to succeed to the lender and students likely to succeed.


At that point you don't have a loan, you have a subsidy. That's OK though, many countries do have that.

Those countries are usually quite strict about who they will subsidize though. Not a bad thing IMO.



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