Ozymandeas
Veteran
I broke down the student loan debt crisis history awhile on here. Why do I know about it? Cause my mother and father both went to college in the 70s and took out loans. This was after the murder of MLK and the government started to really push to get minorities in colleges and many were given huge amounts of loans and grants (huge for those times).
What happened during those times a lot of students would go to college to get a easy loan refund check (like some today) or go to college to get out of being drafted in vietnam. Which a few of my dads homies did.
Anyway in the early 70s a lot of journalist and legislator started to comment that students were abusing the banckruptcy system by writing off their student loans in bankruptcy.
So a congressional commission on bankruptcy was formed to study if students were abusing the bankruptcy policy. Then congress did there own study.
Then by 1976 an educational amendment was made stating student loans could not be written off on bankruptcy until 5 years after commercement of the repayment period.
In 1984 a act stating that even private student loans could not be filed on bankruptcy until 5 years after the repayment period.
Then in 1990 they moved the bankruptcy on student loans to 7 years after repayment started.
Then in 1998 another high education amendment was passed saying they eliminated the 7 year period. Basically stating that all student loan could not be filed under bankruptcy.
Now understand that before 1976 student loans could easily be throw away due to bankruptcy. But once the law hit the books in 1976 it was extremely difficult to remove them. Even with the 5 and 7 year rules.
My dad had homies that tried for years (post 1976) to get their shyt removed without paying and could never get them removed.
So this whole notion that pre 1990 or pre biden it so easy to remove student loans is not true. The shyt been a bytch since 1976.
Long story short this one of the reasons my dad rode me about paying off my loans. I was high school age and my dad would be like man don't fukk around and not pay off them student loans. You don't want to be like my friend Mr. Sam who hiding from them government loans and got his income tax return taken or got his pay check taken by the government.
I would be like dang dad..is that why Mr. Sam had to move from the place he was at and you were helping him move. Dad would be like yep that is why...
This is an insightful and well thought out post. All I’m saying i understand why the government did it. Student loans are unsecured debt taken on by 18 year olds with no credit history or earning history. If it wasn’t guaranteed to be paid back, no bank is doling out $20,000 to a college kid. Why would they? The deal worked for most people as you could find a good paying job after college. The problems didn’t start until companies stopped keeping their end of the bargain by decreasing hiring and pay, and colleges tried to extract more and more by raising tuition out of normal pace of inflation. Before that, it was an okay set up. All I’m saying is trying to retroactively apply 2021 attitudes about student loans to 1990 or even 2005 is dishonest to me because that was before the economy tanked.
announcement: in order to CLOSE THE RACIAL WEALTH GAP everybody is now gonna receive a crispy $100.00 dollar bill!!!
