Reply to Why is Biden extending the student loan repayment pause?

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[quote=Anonymous][quote=Anonymous][quote=Anonymous][quote=Anonymous]They need to make student loans subject to bankruptcy. The government should only do back Federal Loans for URM or first time college attendance. Banks would tighten leading if there was risk involved.[/quote]

Private loans (such as Discover or Sallie Mae) are subject to bankruptcy via the Bruner test. Federal loans are not, you are correct. [/quote]

That's still a lot ore protection that regular consumer debt [/quote]

Regular consumer debt can be discharged in bankruptcy, but credit card interest is way higher than student loan (at least fixed interest ones, which is most of them). Private student loans are dischargeable in bankruptcy in rare circumstances, they do not have federal protections; you had to keep paying if you had them during covid pause unless your individual lender said otherwise. No PSLF, IBR or BDR for private loans. Federal loans are not dischargeable in bankruptcy but have better protections, however they are garnisheable. You can “settle” private loans in some states; it hurts your credit though.

So pros and cons to all.[/quote]

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