Currently you can’t discharge student loans in bankruptcy. I think it would be good if you could. But then people might declare bankruptcy immediately after graduating, to the point that people wouldn’t be able to get student loans. Allowing lenders to repossess degrees in bankruptcy would be one way to mostly resolve this.
That’s right! The suppressing accurate information about someone’s training is negative, but when considering the rest of the student loan situation I think this is a context where it could be worth it on balance.
Is there a reason to think this would be beneficial? I don’t see what’s supposed to be desirable about taking people’s degrees.
Currently you can’t discharge student loans in bankruptcy. I think it would be good if you could. But then people might declare bankruptcy immediately after graduating, to the point that people wouldn’t be able to get student loans. Allowing lenders to repossess degrees in bankruptcy would be one way to mostly resolve this.
So it’s not intrinsically valuable but might incentivize lenders to desired behavior? Makes sense, thanks.
That’s right! The suppressing accurate information about someone’s training is negative, but when considering the rest of the student loan situation I think this is a context where it could be worth it on balance.