Quote:We're definitely in the Boom/Bust cycle. I can't wait for the Education loan bust to happen. That, coupled with the reinflation of the housing bubble, is going to be a huge problem for the next president and congress.

 

The change in bankruptcy laws in 2005 is a large part of that. Students are given tens of thousands of dollars, or even hundreds of thousands of dollars in loans they will spend decades paying back. And unlike any other type of loan, student loans cannot be discharged. Even if someone declares bankruptcy, they are still liable for their student loans. That is a reason why some students can't get a $500 credit card from a bank but can get a $100,000 student loan.

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