Discharging student loans in bankruptcy

[economics102]

I think everyone here probably agree that the right to declare bankruptcy is important for a free society. My question is, if one were to make a constitutional challenge to the law preventing student loans (or any debts) from being discharged in bankruptcy, is there a valid constitutional challenge/argument to be made?

 

[heavenlyboy34]

You would have to parse the meaning of the clause giving the regime the right to issue credit. Even if you did that, though, there are still private debt holders of student loans. Your best bet, IMO, is to lobby Congress to alter bankruptcy laws to allow student loans to be wiped out after declaring bankruptcy.

 

[angelatc]

It's really a dumb idea to make student loans discharge-able in bankruptcy. Maybe after 40 years or something, but other than that you might as well just give out 10% subsidized tuition.

 

[angelatc]

I think everyone here probably agree that the right to declare bankruptcy is important for a free society. My question is, if one were to make a constitutional challenge to the law preventing student loans (or any debts) from being discharged in bankruptcy, is there a valid constitutional challenge/argument to be made?

I don't thin so. The Constitution clearly gives Congress the right to write bankruptcy law, and technically student loans are dis chargeable, but the bar is much much igher than it is for other debts.

 

[LibForestPaul]

Yes. More that a judge is purported not to have the authority to discharge. Seems overstepping separation of powers.
But I believe they have other constitutional challenges covered under forgiveness and deferrals?