B i want to chime in. Max student federal loan is $250k. Outside of that, you have to look at private. I dont know how they handle it with private, but Im sure theyre going to try come after you until you die. You could probably default on it and not pay but like any other bankruptcy. In addition to what silverchild said, not only do you have taxes on whats forgiven, you also have to pay the interested occurred. so really you are not paying back the principal, which can still be a lot.
Like our medicare system, there are many contributors to this problem. I personally feel like education has been turned in a business and the business is to try and get as much money from students as possible via increasing tuition, charging outrageous amounts for "required" textbooks, spending millions on collegiate sports, amongst others. At least in Ca, it used to be that if you wanted to go to a state university, you register and pay the minimum (i was told tuition in the 70s was $300). granted a lot more people want to go so you have the selection process, but now a year of tution at a UC is right around $15-18K for in state.
Lastly, the raising cost of higher education has put the US in a pinch for certain fields, in particular doctors. It really makes no sense for someone to go to school for a minimum of 8 years, 3 years minimum of residency and owe over $250k in loans or payments and make $160k/yr gross. Just doesnt financial sense.
Student loan debt will still be owed even after a bankruptcy... its one of the debts that you can't get rid of.
I don't disagree with you that education has become a business.
But how is that the government's fault when there are exactly 0 federal colleges (outside of military)?
Colleges are STATE or PRIVATE.
Perhaps then, loans should not be made at the federal level at all. they should be done so at the state level for state schools and private sector for private schools.
Costs are ridiculous because every school keeps trying to expand, upgrade, add new stuff, etc to remain competitive.
I recently visited my old college campus.
Since I left there, there's 2 new dorms, a new library, a remodeled student center, and a few neighboring housing became offices/property of the school.
When I went, tuition was $365 per credit hour
Today, it's 634 per credit hour.
so, in 15 years, it's doubled.
but so has everything else, and then some.
gas was 99 cents, now its $4.
min wage was $4+, now its $8+
a new civic was 11 grand.. now 22
books were 100-150... now 200-300
So, please, tell me what exactly I'm missing besides inflation?