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Court rules Student debt is dischargeable in Bankruptcy

Super99Z

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For nearly 15 years, U.S. Navy veteran Kevin Rosenberg owed six figures in student loans.

But on January 7, 2020, a New York judge ruled that the $221,385.49 in student loan debt owed by Rosenberg as of November 2019 was dischargeable under chapter 7 bankruptcy.
Game changer?
 

timbo

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So he took on massive college debt to eventually become a lawyer and then decided being a lawyer was not what he wanted to do so he started an online equipment rental firm. He could become a lawyer even if he did not like it and pay off his student loan. So he took a loan for a degree and then decided he did not want to do that. Whose fault is that? So he is a victim of what? Himself.
 

Asaltweapon

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Free collage educations for all will cure this.

For those going to trade schools you will get all free tools, equipment and the needed trucks to move it all around.
 

Varmint

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C. Stockwell

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So he took on massive college debt to eventually become a lawyer and then decided being a lawyer was not what he wanted to do so he started an online equipment rental firm. He could become a lawyer even if he did not like it and pay off his student loan. So he took a loan for a degree and then decided he did not want to do that. Whose fault is that? So he is a victim of what? Himself.
There's a lot of blame to go around. This is a topic I'd be glad to discuss over a drink but is way too complex to synthesize into one single forum post.
 

June4th

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Who needs bernie when the courts will make college free for you.
That loud popping noise we should hear soon is going to be the explosion of the tuition loan bubble.
By making college loans subject to bankruptcy, it restores the balance of risk/reward of loan making from the lender side: Someone taking out a quarter mil to study mid-18 century Belgium lesbian literature? It won't pass the junior loan officer's desk.

The flood of money on the supply side is one of the causes of hyperinflation on tuition. The financialization of college education is pushing the younger generation into indentured servitude. I firmly believe the younger generations have it in them that if they could pay for their college education flipping pizzas like older generations, they'd do it still.

A small chip off a gigantic fraud scheme, but it's a good start.
 
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In the end, all that will happen is it will be harder to get student loans and people without the savings to pay for college won't be able to go.
 

Varmint

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In the end, all that will happen is it will be harder to get student loans and people without the savings to pay for college won't be able to go.
which will drive costs way down.Imagine college costs being a market economy again.

college prices didn't explode til the government stepped in to back loans and made student loan debt protected from bankruptcy.
 
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In the end, all that will happen is it will be harder to get student loans and people without the savings to pay for college won't be able to go.
And this is a huge part of the college-going demographic. Once these kids stop being able to afford college, colleges wont be full and will have to compete for paying students. This will lead to lowering if tuitions, and borderline colleges folding.

ECONOMICS! This is a good thing.

]
 
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which will drive costs way down.Imagine college costs being a market economy again.
And this is a huge part of the college-going demographic. Once these kids stop being able to afford college, colleges wont be full and will have to compete for paying students. This will lead to lowering if tuitions, and borderline colleges folding.

ECONOMICS! This is a good thing.

]
I don't disagree with either of these, but you know in the short term people are going to play the "wahhh I can't afford to go to college so we need to make it free" card.
 

Prepper

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I don't disagree with either of these, but you know in the short term people are going to play the "wahhh I can't afford to go to college so we need to make it free" card.
So think outside the box. Go to trade school. Learn omline. Be an apprentice and learn from him. Etc.
 

allen-1

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As a vet I had a tuition waiver for my college fees. Am I missing something here?
We had a party at our house this past weekend. One of the guests is a 28 year old currently serving member of the military. He's finishing his Bachelor's degree, (at night), while on his current/final enlistment and then going to law school. His Bachelor's degree has been paid for by the Army, and his law school will be paid for by the GI Bill. Furthermore, he told me that while he's in lawschool he'll be paid a monthly stipend by (I think) the VA. (The payee may be incorrect - the stipend is definitely correct - this was a party, alcohol was consumed).

This is a guy who's got his head screwed on right. He told me that only approximately 10% of enlisted soldiers take advantage of the educational benefits available.
 
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not a financial guy here, but I always thought that when you filed for bankruptcy all your debt was gone.. medical bills, credit card debt, etc. including student loans. Not sure why they wouldn't be included in a bankruptcy filing.

as for the merits of college, it needs to be looked at as a financial investment.. not an entitlement, or a vacation, or "finding oneself"...
 

blindfire

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I've got nothing to lose after my divorce, maybe I should file for bankruptcy to get rid of my loans now..
Do it...seriously. If more people take out loans and then later file bankruptcy, it will make loans harder to get because they will be a lot more picky on to whom they loan money. This will also shrink the market for candidates who try and go to school which will cause the schools to lower tuition.

The .gov also needs to get out of the loan business as well.
 

June4th

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So think outside the box. Go to trade school. Learn omline. Be an apprentice and learn from him. Etc.
Maybe plumbers and electricians won't be so darn expensive to hire...

See? The natural course of economy, as productivity increases, is declining of prices, i.e. deflation. We're conditioned by economists that deflation is bad but it's really not: you can buy a Rasberry-Pi for $40 that outperforms room-sized computers that cost millions decades ago, but computer manufacturers continue to make money.

The inflation on everything, everything..., is caused by the financialization, leverage of monetary instruments, to allow a small cadre of people to skim off the top. 99% of people are robbed and financially raped every day without realizing it.
 
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