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How America's universities became debt factories
Here's a puzzle: how do you create a trillion-dollar debt bubble that can't be popped? Answer: make student loans non-dischargeable in bankruptcy. Now, here's a trickier one: how do you fix this mess when the solution threatens a multibillion-dollar industry? This isn't just a theoretical exercise. It's the reality we're living in. The U.S. student…
The final nail in the coffin was the 2005 Bankruptcy Abuse Prevention and Consumer Protection Act, which extended this rule to private student loans. When a significant portion of the population is funneling its income into loan payments rather than spending or investing, it’s a drag on everyone – even those who never set foot in a college classroom. Social Security Offsets: Improvements to Program Design Could Better Assist Older Student Loan Borrowers with Obtaining Permitted Relief.
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