Student debt being categorized is a separate uncancelable debt in bankruptcy is a curious aspect of this. Much like the mortgage crisis, student debt was not a problem as long as the value of a college education and the job market justified it as a good investment.
The fact that student loans have punitive lock-in for a class of consumer coming straight out of high school with almost no real world experience and arguably lacking biological cognitive aspects to appreciate long-term implications of the loan contract, that seems like collective exploitation.
In a sense, the generation did the proper thing. It was a quiet rebellion. They simply stop trying and paying. Regardless of the legal requirements of forced repayment, The government is now forced to deal with its malfeasance in policy.
I didn't like the tone of the article. It places all the blame on the lack of payment by loan holders, while absolving all responsibility for providing good loans by the loan givers. Situations very similar to the housing crisis of the aughts.
We've all seen what happens with bad debt on this website. It goes for pennies on the dollar or less.
And if the alleged scope of the problem is only 475 billion, as ridiculous as that sounds, this is not some nuclear bomb for the economy as a whole.
I would say just take it out of a couple years of social security payouts and Medicare. Obviously politically untenable.
EFF off James G Martin.
I am a 50 year old for reference.