Things happen in life that you cant control. Sick wife, every year something new seems to happen. She is my first priority. When I got married I said in sickness and in health, not in sickness and in health except when student loans double because the interest has been capitalized while I sat by her bedside praying for her.
Before the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005, most debt could get discharged in a bankruptcy, but thanks to lobbying by the big banks consumers must now go through a five-year period of garnished wages if they go through bankruptcy. Student loans are given to young people who may be less able to estimate their future ability to pay. Making student loans more profitable will only encourage more poor-quality for-profit education mills which can take advantage of impressionable young people. If a creditor knows they will be getting paid regardless of the success of the student, they will loan to a student going to a poor-quality school. The people making loans must take responsibility to ensure that their debtors can pay- that's what capitalism is all about!
Student loans can be wonderful- they may open up opportunities to students who otherwise could not have attended college. But they can quickly turn into a burden or a nightmare. Young people who are struggling financially should have the chance to discharge part of their debt instead of being crippled by it for decades.
As a former student loan officer, too many students "played the game" before this law took effect about 20 years ago----rack up tons of credit card and student loan debt and immediately apply for bankruptcy after graduation. The cost wad enormous!! There are many deferment options and a sincere effort needs to be made to pay loans back so new students have funds to borrow toward educational costs. If 10-15 years down the road there are extraordinary circumstances, then approve write-off on an individual basis.
Student loans are made directly by the federal government to students with financial needs. The repayment terms are very generous (up to 30 years) and considerably below the prevailing rates. In addition deferment and abatement of loan payments allow those truly without the ability to pay to be absolved of loan payments during the time they are unable to pay, without limit. So student loan should be required to be repaid in spite of a bankruptcy filing.
I don't think that there really is anything to be gained by allowing students or any other people who have student loans to get rid of said loans simply by filing for bankruptcy. There is still a need to hold people accountable in this nation, and we need to do so.