Who wouldn't want to rack up a bunch of debt and just not pay when the bill came due?
Bankruptcy is good for entrepreneurial risk, but not for human thriving apparently...
But fleeing to another country and/or simply refusing to pay your debts, regardless of whether or not you are able to are is not bankruptcy. It's simply refusing to pay your debts.
If companies can do strategic bankruptcies, transfer pricing, etc., then regular people can do the consumer equivalents.
I don't think any of us should shill for corporate interests.
But if a company borrowed the money and never had the intention to make enough to pay it back or return on investment, we have a different word for that. That word is fraud. Just ask Elizabeth Holmes.
This incentive structure doesn't exist with student loans: student loans are unconditional, and with terms that don't take into account likelihood of payback.
So, this happens instead.
> [...] essentially would get a free education.
How horrible, imagine the world.
When the bank is giving you a sub-prime loan, who is more sophisticated in that transaction?
If the bank (with their fancy risk models, etc.), why shouldn't they be the party to take the bulk of that risk?
Student loans are guaranteed by the federal government. That is not the same thing at all.
People become absolutely psychopathic about these sorts of discussions, and become heartless, soulless goblins. Even people at the bottom of the socioeconomic ladder will desperately line up to show how good of little corporate bootlicking subjugates they are.