"Currently, roughly 5.3 million borrowers are in default on their federal student loans."
1. Biden should not have tried to buy off young people with forgiving student loans.
2. Young people should not have been sold a bill of goods that a degree, any degree would make enough economic difference, to justify getting tend of thousands of dollars in debt. There were degrees that would lead to good jobs. Many would not.
3. The article says that less than 40% are current on their debt. I suspect many stopped making payments during COVID when the government stopped requiring payments. I suspect more than a few saw Biden's pandering as an excuse to not even try.
4. Sending these debts to collections is going to impair credit scores for many years.
5. The entire student loan process has been a huge subsidy to universities. Some, such as the Ivy League schools with huge endowments, did not need it. Even at the more typical schools, the effect was to drive up tuition.
The university involved should be on the hook for a student loan if the student declares bankruptcy, and that should discharge the debt. No reason at all for student loans to be exempt from a bankruptcy.
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