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Should Student Loans be Dischargeable in Bankruptcy ?

Should Student Loans be Dischargeable in Bankruptcy ?

Until Congress does what is right and the Department of Education has skin in the game for students, the invisible hand will not operate like it does for all other lending systems, and no fix (like gainful employment, for example)  will have any meaningful effect.  Prices, debt, and defaults will increase to the point where the American public will reject the entire lending system and all it supports. The related social consequences of this are not clear, but it is clear that we don’t need to go there.  And as the American Street demonstrates, this is likely something that Congress must do sooner rather than later, and in a non-partisan manner.

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Over and over again courts have said that there is nothing sinister in so arranging one’s affairs as to keep taxes as low as possible. Everybody does so, rich or poor; and all do right, for nobody owes any public duty to pay more than the law demands: taxes are enforced exactions, not voluntary contributions. To demand more in the name of morals is mere cant.