Private Student Loans Detail
In response to the Consumer Financial Protection Bureau's report on private loans in July, Moody's Investors Service summed it up nicely: "Borrowers who have just left school are struggling to find jobs in the weak economy and are likely less concerned than more mature borrowers about the potential difficulty in obtaining credit after bankruptcy or by associated social stigma." Bankruptcy could be a trap for young borrowers who unwittingly trade the appeal of immediate debt relief for an underappreciated cost: a 10-year stain on their credit profile that makes other borrowing virtually impossible. An expedient bankruptcy at age 25 could substantially impair a 32-year-old who has moved to the next life stage but is denied a mortgage, car loan, or small business loan.
Three other arguments support maintaining current law. The first is equity for student loan borrowers. Some policymakers seek to strip non-dischargeability from private loans while maintaining it for federal loans. Decoupling identical bankruptcy protections will create confusion for borrowers.
Private Student Loans
In response to the Consumer Financial Protection Bureau's report on private loans in July, Moody's Investors Service summed it up nicely: "Borrowers who have just left school are struggling to find jobs in the weak economy and are likely less concerned than more mature borrowers about the potential difficulty in obtaining credit after bankruptcy or by associated social stigma." Bankruptcy could be a trap for young borrowers who unwittingly trade the appeal of immediate debt relief for an underappreciated cost: a 10-year stain on their credit profile that makes other borrowing virtually impossible. An expedient bankruptcy at age 25 could substantially impair a 32-year-old who has moved to the next life stage but is denied a mortgage, car loan, or small business loan.
Three other arguments support maintaining current law. The first is equity for student loan borrowers. Some policymakers seek to strip non-dischargeability from private loans while maintaining it for federal loans. Decoupling identical bankruptcy protections will create confusion for borrowers.
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
Private Student Loans
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