Government Bravely Urges Everyone Except the Government to Give Student Loan Victims a Break
The funniest (meaning "most horrific and devastating") thing about student loans is that, thanks to some nifty lobbying, you cannot get rid of them in bankruptcy. They just stick around like one of the more bothersome STDs no matter how impoverished you become. But that might change, a bit! Which would be major news for you broke, educated people.
A big new government report from the CFPB says—not to spoil it—that our national student loan bill is huge, and we are fucked. (Spoiler.) An actual ray of sunshine, though, perhaps, comes in the form of this nakedly hypocritical new government recommendation. The WSJ reports:
The Obama administration urged Congress to make it easier for people to discharge a portion of certain student debt by filing for bankruptcy protection.
The recommendation, in a report by the Education Department and the Consumer Financial Protection Bureau, wouldn't affect the vast majority of student debt, which is issued by the federal government. It would apply only to the roughly $150 billion, or 15% of total outstanding student debt
Haha the government would really like PRIVATE lenders to loosen up! But of course this shouldn't apply to government student loans, because "it would likely result in taxpayer losses." Unlike widespread bankruptcy declarations followed by lifelong penury due to the inability to discharge such loans! Indentured servitude is actually a great setup for lenders.
This is the bravest government action since Lincoln freed the slaves in the part of the country that he did not control.