Student Loans - Just Say No

Student Loans are the worst consumer loans.

• Student loan debt is a crisis right now. 
• Student loans are offered to 18 year olds who usually have little financial understanding.  Often loans are used for living expenses in addition to college tuition.
• Many student loan borrowers are unable to pay off their student loans
• Student loans, except in extraordinary hardship, cannot be discharged by bankruptcy.

The Consumer Protection Financial Bureau, CPFB, ought to label student loans as Predatory Loans.

Here's my solution:

• Eliminate the federal funded student loan program.   Data shows that it leaves many borrowers with significant debt that they will not be able to repay. IMHO, this program is a failure.
• Enable future student loans to be easily discharged in bankruptcy.  Let the lenders/banks take the risk.

The result?    Tuition costs at many universities would be reduced without availability of easy money.   More people would consider alternatives to a 4 year degree.   Future graduates would no longer have onerous student loan debt for most of their lives.

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This is not financial nor education advice. Please consult a professional advisor.

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