> For example, you used to be able to discharge student loans in bankruptcy.
IMO, a non-dischargeable loan should have a 0% interest rate by law. All banks would get is an origination fee, capped by statute to some low amount (say, 1% of the principal).
I'd be in favor of this being applied retroactively, so that all interest paid on non-dischargeable student loans in the past was applied to the principal and any overages refunded to the borrower (perhaps over a period of time or against taxes owed or similar).
I'd prefer both of these to be done instead of a one-time "student loan forgiveness" program.
IMO, a non-dischargeable loan should have a 0% interest rate by law. All banks would get is an origination fee, capped by statute to some low amount (say, 1% of the principal).
I'd be in favor of this being applied retroactively, so that all interest paid on non-dischargeable student loans in the past was applied to the principal and any overages refunded to the borrower (perhaps over a period of time or against taxes owed or similar).
I'd prefer both of these to be done instead of a one-time "student loan forgiveness" program.