13458996, It's also debt that in most cases can't be forgiven Posted by GOMEZ, Wed Apr-27-22 07:23 PM
so even if you declare bankruptcy you still owe. The educational lending system in our country is a form of indentured servitude. So even if that degree you bought turns out to be bullshit, or markets shift and the skills are no longer in demand. Fuck you pay me, or just go die.
The penalties and fines for default and late payment can compound and stack up pretty quickly and actually become a bigger part of your debt than the actual money/principle than you borrowed.
That also creates a perverse incentive for schools to increase tuition and financial institutions to loan money to whoever the fuck because it's virtually impossible to default.
So i'm very much in favor of forgiving debt (even though i said fuck it and paid off my own debt recently), but to your point without some serious structural changes we'll be back in teh same spot 10 years from now. My first move would be to make it easy to erase college loan debt through bankruptcy.
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