A weird thing about student debt, which makes me at least willing to arguments that it should not be dischargeable, is that once you have a diploma in hand, that's that. There isn't really a mechanism by which it's revocable on financial grounds--once you've got the credential, you've got the credential.
A weird thing about student debt, which makes me at least willing to arguments that it should not be dischargeable, is that once you have a diploma in hand, that's that. There isn't really a mechanism by which it's revocable on financial grounds--once you've got the credential, you've got the credential.
The incentive structure is thus a bit warped: if there were some hypothetical mega-MIT degree that guaranteed the recipient a lucrative career, it would make dispassionate financial sense to get a big loan for that degree and then declare bankruptcy. IANAfinancialperson, but it seems like it should never, ever make good sense for a person to *plan* on a bankruptcy before incurring debt.
A weird thing about student debt, which makes me at least willing to arguments that it should not be dischargeable, is that once you have a diploma in hand, that's that. There isn't really a mechanism by which it's revocable on financial grounds--once you've got the credential, you've got the credential.
The incentive structure is thus a bit warped: if there were some hypothetical mega-MIT degree that guaranteed the recipient a lucrative career, it would make dispassionate financial sense to get a big loan for that degree and then declare bankruptcy. IANAfinancialperson, but it seems like it should never, ever make good sense for a person to *plan* on a bankruptcy before incurring debt.
And graduates of mega-MIT presumably don't have much in terms of assets that they would lose through a strategic bankruptcy.