LogFAQs > #961496267

NightingaleMD posted...

I mean

maybe I'm just getting old, but I agree. It's unethical to take out loans with even a thought that you won't have any responsibility for them

Maybe I should ask for my mortgage to be forgiven too? Or free air travel and meals everywhere I go? Why pay for anything ever?

It sucks paying loans. It does. But it's a part of being a responsible human. There are a bazillion trade jobs that pay super well right now, literally no one NEEDS college.

You know what's the difference between student loans and a mortgage (or any other debt)?

You can discharge a mortgage in a bankruptcy. You can get rid of car loans, credit card debt, medical debt, and wage garnishing judgments by filing bankruptcy. That's because bankruptcy (both Ch. 7 and Ch. 13) were created to protect consumers that got in way over their heads and need a fresh start.

Guess what isn't discharged in a bankruptcy? Student loan debt.

So not only is taking in a student loan infinitely easier than getting a mortgage or a car loan (seriously, I work with high school and college students and they can get a $40k student loan with no credit but struggle to get a $10k car loan), but it's virtually impossible to get it discharged in any way, shape, or form.

Add to that the fact that student loan interests are, on average, higher than car loan interests and much higher than mortgage interest, causing compounding interest that builds up much faster than you can pay off.

Add to that the fact that at least a mortgage gets you a house that appreciates in value, and a car loan at least gets you a physical car you can use day-to-day. Student loan debt only gets you a piece of paper, if you finish, that says you can maybe get a job one day. There is no collateral tied to that loan. It's essentially unsecured like credit card debt but not dischargeable like credit card debt.

Add to that the fact that these loans are primarily directed at 16-18 year olds, many first-generation students who receive no financial advice from their parents (because they never had to get student loan debt), and do not get financial advice from their schools (because it's more important they learn trigonometry and calculus than the basics of budgeting and finance), while being told that they have to go to college.

Student loan debt is a MASSIVE issue for all the reasons stated above. People who compare student loan debt to other debts are either not aware of these differences or are being disingenuous. Someone can easily say "well I have to pay my mortgage" without acknowledging the fact that they do have a lifeline through bankruptcy if they one day couldn't pay it, as millions of Americans (as well as millionaire and billionaire entrepreneurs) have done. If student loan debt were dischargeable with bankruptcy, you can bet that we wouldn't have the same number of problems we have now.