<p>Let’s presume for a minute that you do away with the non-dischargeability of bankruptcy with regard to student loans. Other than the Feds who will offer a loan? No one. A bank/finance company cannot afford to take the risk and offer the rates that are being charged today. Either rates will need to go up to compensate the bank/finance company for taking the risk or they will require collateral. End of story.</p>
<p>If the bankruptcy issue is removed from the FDSL program who is on the hook? You me and the other 47% that pay taxes.</p>
<p>Why did the Feds take over the student loan program? Simple anwer. By taking the program over the Obama adminstration could book a gain that would help offset the cost of Obamacare.
Borrowers are paying more today than if the FFELP program was still in place.</p>
<p>It was and still is about the money.</p>