Should student loans be dischargeable in bankruptcy court?

[bobbyw24]

Every other form of debt can be discharged in bankruptcy court except for student debt, why shouldn't that be included?

NOT true.

The Bankruptcy Code lists 19 categories of debt that may not be discharged in bankruptcy--things like recent income taxes, child support, alimony, condominium association fees, damages caused while driving dunk, etc.

Exceptions to discharge

(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt—

http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000523----000-.html

 

[Brian in Maryland]

They could have done what my two oldest children did - Join the military and EARN their education!

I wish I could get the tax payers to pay for my education. I've never been able to afford it myself, but I have been paying for your kids. Lovely. I've EARNED everything I have ever had, without robbing my fellow citizens.

 

[specsaregood]

Crybabies.
The Gimme gimme gimme generation.

I used to be with you; but now I'm leaning the other way. The loans were made with funny-money-printed-at-a whim. They didn't actually borrow real wealth. So screw it, delete the "loans" they are just imaginary digits anyways.

 

[frodus24]

Here is my big issue with this.

I have worked in financial aid for the past 6 years or so. A colleague of mine who works in the office of financial aid received her undergraduate and master's degree for free at the institution that employs us both. This is a pretty good deal with the exception of having to pay for books. As an undergraduate, she received a total of $16,241.00 in Pell Grant(free money) funds to help cover living expenses and books. She is a high need student, married with 2 children and makes about $30,000 a year in compensation. Her husband is not employed due to laziness.

That sounds great doesn't it? Here is the kicker. Well, she also borrowed the maximum amount of loan money each year which is perfectly legal. As long as it fit in the budget, she could borrow money to use for living expenses. The grand total is $55,000.00 over 6 years. Well, for 6 years this person took a couple of vacations every year with her family such as a cruise. She owns a nice TV, laptop and other things. Recently, we were talking about paying back loans and she stated that she is not going to pay any of the money back. I seriously had to hold back on going off on her. She bluntly stated that she can't afford to pay back the loans.

You see, I do not feel the least bit sorry for this person at all. She lives pay check to pay check. She complains all of the time. These are the types of people that should not be allowed to have their debt wiped out. There are other students that I know that do the same thing and it pisses me off to no end. I am still paying on my loans and I intend to pay them off.

Discharging student loans should be done on a case by case basis. But for this person, if she ever tried to do this, I would say HELL NO. She knew exactly what she was doing.

 

[heavenlyboy34]

Crybabies.

The Gimme gimme gimme generation.

Collectivist WTF, "crybabies"? Nonsense. Other people in similar situations can get rid of debt in bankruptcy. We're only asking for similar fair treatment and an end to predatory lending. (yes, aside from the exceptions mentioned in a previous post) I'm tempted to neg rep you, but I'm in a generous mood today.

I used to be with you; but now I'm leaning the other way. The loans were made with funny-money-printed-at-a whim. They didn't actually borrow real wealth. So screw it, delete the "loans" they are just imaginary digits anyways.

Yep, that's it right there.^^ Moral hazard in action.

 

[heavenlyboy34]

Here is my big issue with this.

I have worked in financial aid for the past 6 years or so. A colleague of mine who works in the office of financial aid received her undergraduate and master's degree for free at the institution that employs us both. This is a pretty good deal with the exception of having to pay for books. As an undergraduate, she received a total of $16,241.00 in Pell Grant(free money) funds to help cover living expenses and books. She is a high need student, married with 2 children and makes about $30,000 a year in compensation. Her husband is not employed due to laziness.

That sounds great doesn't it? Here is the kicker. Well, she also borrowed the maximum amount of loan money each year which is perfectly legal. As long as it fit in the budget, she could borrow money to use for living expenses. The grand total is $55,000.00 over 6 years. Well, for 6 years this person took a couple of vacations every year with her family such as a cruise. She owns a nice TV, laptop and other things. Recently, we were talking about paying back loans and she stated that she is not going to pay any of the money back. I seriously had to hold back on going off on her. She bluntly stated that she can't afford to pay back the loans.

You see, I do not feel the least bit sorry for this person at all. She lives pay check to pay check. She complains all of the time. These are the types of people that should not be allowed to have their debt wiped out. There are other students that I know that do the same thing and it pisses me off to no end. I am still paying on my loans and I intend to pay them off.

Discharging student loans should be done on a case by case basis. But for this person, if she ever tried to do this, I would say HELL NO. She knew exactly what she was doing.

This is a reasonable compromise, IMO.

 

[Becker]

Credit card debt.

what is the limit one can owe on credit card debt at a time?

$50k? $100k?

 

[Becker]

NOT true.

The Bankruptcy Code lists 19 categories of debt that may not be discharged in bankruptcy--things like recent income taxes, child support, alimony, condominium association fees, damages caused while driving dunk, etc.

Exceptions to discharge

(a) A discharge under section 727, 1141, 1228 (a), 1228 (b), or 1328 (b) of this title does not discharge an individual debtor from any debt—

http://www.law.cornell.edu/uscode/html/uscode11/usc_sec_11_00000523----000-.html

thanks!

 

[nobody's_hero]

I used to be with you; but now I'm leaning the other way. The loans were made with funny-money-printed-at-a whim. They didn't actually borrow real wealth. So screw it, delete the "loans" they are just imaginary digits anyways.

My thoughts exactly. It's a bit of a distortion to say that there's a 'debt' to be paid. We are repaying debt with debt. There's too much debt, everywhere. Hell, our currency itself is debt.

Our debt under the Federal Reserve system is based on . . . debt. It's healthy for everyone if this stuff gets liquidated back into the thin air it came from.

(I usually don't quote myself, and that felt . . . weird)

Now, if we had a gold-standard (if our currency was actually backed by something), and we were in the middle of this HUGE debt crisis, we'd have a very, very serious, very real problem. But odds are, with a gold standard, it would be very hard if not impossible to reach the dismal condition we're in now.

 

[Sematary]

Yep killing brown people for free education is the new American way! We should all give it a try!

What the HELL is with you people?
I thought our country was past this crap.
You sir, are an ASS

 

[Sematary]

That's not earned money. It's a transfer of wealth/bribery for soldier loyalty program. (every dollar the MIC spends comes from you and I)

Yep, for your security. Kiss my ass. You are going to sit on your soap box and disparage my children while you take your ideals and post them on the internet without having a clue what it takes for you to have RIGHT to do so?

 

[Sematary]

For every one of you who have chosen to make some snide comment about those who serve our nation in the military, you can all bite it. We may all agree that our wars of aggression are wrong but you still need a military because without it you wouldn't be free. You would be subservient, probably to the Chinese, by now. And to make an asinine statement that those who serve then go to school afterwards on a GI bill the government promised them is somehow "free" money - you can also bite it. My daughter spent a year in Iraq, a year in Germany and 8 years of her life in the military and she EARNED that education because that was the contract. Same for my son. I never took advantage of mine. I should have.

 

[Ranger29860]

Yep, for your security. Kiss my ass. You are going to sit on your soap box and disparage my children while you take your ideals and post them on the internet without having a clue what it takes for you to have RIGHT to do so?

I'm a vet on the new gi bill and i can tell you right now its a sham. I have seen people get the benefits for never being deployed. Not to mention It is a bribery program. The new gi bill came out right when the army was having recruiting problems. Support your children and there courage but don't put blinders on for what this is.

 

[Sematary]

I'm a vet on the new gi bill and i can tell you right now its a sham. I have seen people get the benefits for never being deployed. Not to mention It is a bribery program. The new gi bill came out right when the army was having recruiting problems. Support your children and there courage but don't put blinders on for what this is.

Exactly how is it a sham? The government made a CONTRACT with the people who serves in the nations' military. Deployed or not, it is a contract and must be fulfilled.
The alternative to this is that the youth of this nation could be (and probably WOULD be) subject to a draft. Personally, I prefer the current method.
But, to get back to my point, I'm just pissed at the attitude of people here on the subject of people in the military. Those people (including my children) are SACRIFICING for their country and what they get back is some of the bullshit that I've read on this thread? They deserve more respect than that.

 

[Ranger29860]

For every one of you who have chosen to make some snide comment about those who serve our nation in the military, you can all bite it. We may all agree that our wars of aggression are wrong but you still need a military because without it you wouldn't be free. You would be subservient, probably to the Chinese, by now. And to make an asinine statement that those who serve then go to school afterwards on a GI bill the government promised them is somehow "free" money - you can also bite it. My daughter spent a year in Iraq, a year in Germany and 8 years of her life in the military and she EARNED that education because that was the contract. Same for my son. I never took advantage of mine. I should have.

It is a good program i will not disagree with that. But it is free money plain and simple. Every soldier signs a contract. If your children are out now they would have to have been in before the new one came out. That would mean they did not sign up for it and probably paid into the old one. The new one was not in the contract and was later added as a bonus for soldiers that were already in. But they biggest reason for it was the FREE MONEY you get while out. Full BAH e-5 with dependent along with every cent of your college paid. Using this as a recruitment tool. I use the gi bill and i would be screwed if i didn't have it but i accept that it is free money. ESPECIALLY the BAH. This even isn't taking into account the pell grant soldiers can take and basically have 5-6k given to them yearly to do whatever with since they don't have to use it for college.

 

[Ranger29860]

Exactly how is it a sham? The government made a CONTRACT with the people who serves in the nations' military. Deployed or not, it is a contract and must be fulfilled.
The alternative to this is that the youth of this nation could be (and probably WOULD be) subject to a draft. Personally, I prefer the current method.
But, to get back to my point, I'm just pissed at the attitude of people here on the subject of people in the military. Those people (including my children) are SACRIFICING for their country and what they get back is some of the bullshit that I've read on this thread? They deserve more respect than that.

Its a sham because I and your children are held to that contract but the us government is not. The gi bill has been changed 3 times since i signed up for it under contract. But they don't care and change it anyway. That s how it is a sham.

May i ask if your children have been deployed? Cause i can tell you with first hand knowledge me and my friends were not sacrificing for our country over there. If you want to read up more on this attitude go to the Iraq Veterans Against the War site. This isn't meant to diminish the courage that is needed to join and deploy in the armed forces but it is just vets being honest.

 

[Sematary]

Yes, they were both deployed.

 

[Ranger29860]

Yes, they were both deployed.

I just ask people to be honest with each other even when family is involved. I doubt many here would say the Vietnam war was soldiers sacrificing for us. This is the same outlook many vets have. I believe this is one of the main reasons Ron Paul gets so many vets and active soldiers donations. We know its a scam and isn't worth dying for. Its sad i joined the Army right out of high school out of patriotism and was immediately given a reality check the minute i stepped foot in Iraq for my first deployment. Soldiers are not bad people as some have implied but it is against the army core value to stay in past your initial contract when it comes to the current wars. Integrity is doing the right thing no matter what. And the right thing right now is to get the hell out and not fight a war like this.

 

[qh4dotcom]

For every one of you who have chosen to make some snide comment about those who serve our nation in the military, you can all bite it. We may all agree that our wars of aggression are wrong but you still need a military because without it you wouldn't be free.

Ha Ha Ha...thanks for the laugh...Costa Rica does not have a military...why are Costa Ricans free then?
The Chinese are not that dumb to mess with the 2nd amendment rights of Americans.

 

[Pauls' Revere]

On the one hand I say yes, and on the other I say no. People should be able to at least refinance thier student loans more than once. If people can refinance a mortgage many times to thier benefit than why not a student loan? I don't get it.