All that is being proposed is the cessation of the government providing services to creditors where they chase down some disabled person with student debts from 30 years ago and shake them down for money and garnish their wages. It's simply not nessecary and not in the interests of the government's stakeholders to provide such services to creditors.
If this means that schemes where a debtor lends out so much money that they will go broke unless they end up milking people for decades aren't viable anymore, so be it. If a debtor goes broke due to such regulatory changes, they should not be compensated, as it's not reasonable to expect zero risk given how unpopular the debt bondage is. Normally one wants to only make such changes with compensation, in order to give lenders confidence their contracts will be enforced or at least they will be compensated, but the status quo around student debt is so extreme and exceptional I don't think that's necessary here. Outside of student debt, prison labor is the only other form of legal slavery I can name in the United States.
All that is being proposed is the cessation of the government providing services to creditors where they chase down some disabled person with student debts from 30 years ago and shake them down for money and garnish their wages. It's simply not nessecary and not in the interests of the government's stakeholders to provide such services to creditors.
If this means that schemes where a debtor lends out so much money that they will go broke unless they end up milking people for decades aren't viable anymore, so be it. If a debtor goes broke due to such regulatory changes, they should not be compensated, as it's not reasonable to expect zero risk given how unpopular the debt bondage is. Normally one wants to only make such changes with compensation, in order to give lenders confidence their contracts will be enforced or at least they will be compensated, but the status quo around student debt is so extreme and exceptional I don't think that's necessary here. Outside of student debt, prison labor is the only other form of legal slavery I can name in the United States.