Nearly 20 percent of student loan borrowers are now delinquent.

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[–] 3 points 19 hours ago (9 children)

You absolutely can blame legislators for the legislation they vote for lol

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  • [–] 2 points 19 hours ago (8 children)

    Why not blame the Executive (Bush Jr) who could've not signed the bill which would've pretty much killed it since they probably wouldn't have been able to get the 2/3 majority to override the veto?

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  • [–] 2 points 19 hours ago (7 children)

    Why not blame both of them? They worked together to pass this abomination, they can share the blame.

    You seem to be trying to absolve legislators of blame for the legislation they vote for, which is bizarre.

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  • [–] 1 point 19 hours ago (6 children)

    Nah, it was the result of decades of various groups pushing for it.

    The push to make student loans "unforgivable" (non-dischargeable in bankruptcy) was not the result of a single person, but rather a multi-decade legislative effort driven by a federal advisory commission, congressional lawmakers, and intense lobbying by the financial and student loan industries.

    1. The 1970s Commission and the 1976 Law

    • The Commission on the Bankruptcy Laws of the United States: Formed by Congress in 1970 to review the bankruptcy system, the commission heard claims—often unproven—that recent college and professional graduates were taking out federal loans and immediately filing for bankruptcy to wipe them out before starting high-earning careers.

    • The Higher Education Act Amendments of 1976: Influenced by these concerns, Congress amended the law to make government-backed student loans non-dischargeable for the first five years of repayment unless the borrower could prove "undue hardship".

    • The 1978 Bankruptcy Code: Congress cemented and expanded this treatment into the U.S. Bankruptcy Code (Section 523(a)(8)), with strong backing from congressional committees and legislative compromise.

    2. Tightening in the 1980s and 1990s

    • The Bankruptcy Amendments of 1984: Congress broadened the restriction to include loans that were privately funded or guaranteed by non-profit entities.

    • The 1990 Crime Bill / Budget Amendments: Congress extended the waiting period before a federal loan could potentially be discharged from five years to seven years.

    • The Higher Education Amendments of 1998: Backed by industry interests and signed into law by President Bill Clinton, Congress eliminated the waiting period entirely. This meant student loans could no longer be discharged after waiting a set number of years; "undue hardship" became the sole, near-impossible standard.

    3. Closing the Door on Private Loans in 2005

    • The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA): Pushed heavily by credit card companies, banks, and the broader consumer lending/student loan industry (including major lenders like Sallie Mae), Congress extended the bankruptcy exception to private student loans as well.

    • The Result: Private and federal student loans became virtually impossible to discharge in bankruptcy except under the strict, high-bar legal standard known as the Brunner test, making student debt uniquely permanent compared to almost every other form of consumer debt.

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  • [–] 2 points 19 hours ago (5 children)

    Me: Biden should share the blame for bills that he helped pass.

    You: Biden is a blameless innocent angel that can't be blamed for anything.

    Why are you like this? Obviously he isn't the godking that personally made this happen by himself but he shares the blame. Biden was in office throughout the entirety of that timeline, you think he wasn't involved every step of the way? He's a Senator from Deleware, which is actually just banks and corporations in a trench coat.

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  • [–] 1 point 19 hours ago (4 children)

    I never said Biden didn't share some of the blame, rather that it's a more complex and nuanced situation than what you suggested (its all Bidens fault and if he didn't exist it wouldn't have happened.)

    The push to make student loans "unforgivable" (non-dischargeable in bankruptcy) was not the result of a single person, but rather a multi-decade legislative effort driven by a federal advisory commission, congressional lawmakers, and intense lobbying by the financial and student loan industries.

    1. The 1970s Commission and the 1976 Law

    • The Commission on the Bankruptcy Laws of the United States: Formed by Congress in 1970 to review the bankruptcy system, the commission heard claims—often unproven—that recent college and professional graduates were taking out federal loans and immediately filing for bankruptcy to wipe them out before starting high-earning careers.

    • The Higher Education Act Amendments of 1976: Influenced by these concerns, Congress amended the law to make government-backed student loans non-dischargeable for the first five years of repayment unless the borrower could prove "undue hardship".

    • The 1978 Bankruptcy Code: Congress cemented and expanded this treatment into the U.S. Bankruptcy Code (Section 523(a)(8)), with strong backing from congressional committees and legislative compromise.

    2. Tightening in the 1980s and 1990s

    • The Bankruptcy Amendments of 1984: Congress broadened the restriction to include loans that were privately funded or guaranteed by non-profit entities.

    • The 1990 Crime Bill / Budget Amendments: Congress extended the waiting period before a federal loan could potentially be discharged from five years to seven years.

    • The Higher Education Amendments of 1998: Backed by industry interests and signed into law by President Bill Clinton, Congress eliminated the waiting period entirely. This meant student loans could no longer be discharged after waiting a set number of years; "undue hardship" became the sole, near-impossible standard.

    3. Closing the Door on Private Loans in 2005

    • The Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 (BAPCPA): Pushed heavily by credit card companies, banks, and the broader consumer lending/student loan industry (including major lenders like Sallie Mae), Congress extended the bankruptcy exception to private student loans as well.

    • The Result: Private and federal student loans became virtually impossible to discharge in bankruptcy except under the strict, high-bar legal standard known as the Brunner test, making student debt uniquely permanent compared to almost every other form of consumer debt.

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  • [–] 1 point 19 hours ago* (3 children)

    You are confusing me with a different user. I merely said that we can blame legislators for the legislation they pass. I literally asked "why can't we blame both" and then you said "nah", which implies that we can't blame both.

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  • [–] 1 point 19 hours ago (2 children)

    Ah, sorry. Point still stands. It's a bit more complicated than either of us suggested. They've been chipping away at student loan forgiveness for decades.

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  • [–] 1 point 19 hours ago (1 child)

    Biden was in office every one of those decades. Just sayin.

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  • [–] 0 points 18 hours ago

    So were numerous other legislatures who helped pass it. It isn't an issue that can be pinned on one person. Had Biden not been there it would've still been passed. Stop obsessing on Biden, it makes you sound like a malfunctioning Trump-bot.

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