Why You Can't Drop Student Loans through Bankruptcy
The Political Orphanage
Andrew Heaton
4.9 • 1000 Ratings
🗓️ 3 June 2021
⏱️ 25 minutes
🧾️ Download transcript
Summary
Student loan debt is at a cool $1.7 trillion and growing. Should we forgive all the debt? Why can't we discharge it through bankruptcy? Policy deep dive episode!
Transcript
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| 0:00.0 | Hello and welcome to the political orphanage, a home for pluckiness fits and problem solvers. I'm Andrew Heaton and they haven't |
| 0:15.4 | caught me yet. |
| 0:18.0 | This week is a two-parter because, frankly, I've been off a little more than I can chew. |
| 0:24.6 | Instead of just answering the question, |
| 0:26.7 | why is college so expensive, |
| 0:28.9 | I sort of overshot the exit on the highway and did more research and |
| 0:34.3 | recording that I need to and I felt inclined to dive into student loan debt so for |
| 0:38.9 | ease of organizational purpose we're going to do that as its own episode today. |
| 0:45.0 | What does student loan debt look like in America? |
| 0:48.6 | What does it taste like? |
| 0:50.2 | What fashion accessories go with it? More importantly, if we got college tuition prices under control, |
| 0:56.0 | what do we do about all those people with debt faking their own deaths |
| 1:00.0 | or fleeing the country to get out from under those excessive student loans. |
| 1:04.6 | That's what we're going to talk about on today's program. |
| 1:06.7 | Do we forgive it or not? |
| 1:09.8 | Now I am assuming that everyone listening at this moment has more student loan debt than I do |
| 1:15.3 | and is quietly glaring and sharpening a butcher knife as I discuss the subject, waiting for |
| 1:21.7 | my opinion on whether we should forgive it or not. |
| 1:24.0 | So, being a coward, let me first explain why student loans are legally distinct from |
| 1:31.1 | every other kind of loan and why they cannot be discharged through bankruptcy. |
| 1:36.5 | In 1976, Congress extended eligibility for federal student loans to applicants who had not completed high school. |
| 1:44.0 | The logic being, I think, that high school dropouts are struggling, |
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