Will Changes in Student Loan Laws Help Me?

It is difficult to discharge student loans in bankruptcy.
The House of Representatives passed a bill changing student loan laws, but not their treatment in bankruptcy.
Not yet, anyway.
As it stands, the government subsidizes student loans made by private banks.
That is, private banks would not make student loans, the government, ever looking out for us, decided to subsidize those loans, so that banks would make them.
Of course, any time you subsidize anything, you get more of it.
And the banks did not care so much if the loans were re-paid, as the government was covering them.
The new law eliminates that, putting the student loan program completely in the hands of government agencies, who would make the loans directly. The point?  Supposed to save $80 billion over the next ten years, saving those subsidy costs to the private banks by eliminating the middle man.

Who could be opposed?

Of course, the subsidized middle man, the banks.

Like they don’t have enough taxpayer subsidies and bailouts already.

Which begs the question of the validity of the entire program to begin with.

The best way to handle student loan debt?

Don’t acquire any!

The propaganda is all over:  “The average college graduate earns more than a million dollars more than the average high school graduate over a working lifetime.”

Blah, blah, blah.

So, does that mean you should borrow up to a million dollars to get that degree?

NO!

But, the colleges are happy to have paying customers, the banks are happy to have guaranteed profits off of subsidized loans, win-win situation.

Except for the student.

I talked to someone with $300,000 in student loan debt, expecting his first child with his wife, studied computer something, took six years to get his degree.

So, did anyone sit down with him to go over the numbers.

You are missing six years in the work force, you lose that income right off the bat.

How much more are you going to make after that with this degree?

Well, seems salaries in his chosen field crashed while he was in school.

There is no way the $300,000 in loans was economically justified, as an investment, he will lose money.

Please, get sound advice on the numbers from someone who can do present value calculations before you or your child mortgages her future.

Will Changes In Student Loan Laws Help Me?