bankruptcy. what do you mean? it is for all intents impossible to discharge student loans and bankruptcy. wait, i thought that all debt needs to be discharged in bankruptcy except for student loans. in 1998, they essentially took bankruptcy protections permanently away for all-time, from federal student loans. could this be true? and isn t bankruptcy a bad thing. i think the first time i heard the word bankrupt wasn t wheel of fortune. the audience goes oh, and you lose all your money. and i just assumed that something that i don t want. many clients post bankruptcy go on to buy houses, which they re never able to do. i have had two clients actually become multimillionaires. how hard would it be for me to discharge my student loan debt through bankruptcy? it is impossible. i guess bankruptcy is reserved only for the truly neediest cases.
that got very little attention but would change everything. if you could point to one thing about the student debt system, one thing you would change, what would it be? - bankruptcy. - what do you mean? - it is for all intents, impossible to discharge student loans in bankruptcy. - wait, i thought that all debts could be discharged in bankruptcy. - except for student loans. in 1998, they essentially took bankruptcy protections permanently away for all time from federal student loans. - could this be true? and isn t bankruptcy a bad thing? i think the first time i heard the word bankrupt was from watching wheel of fortune. the audience goes, aw, and you lose all your money. and i just assumed that s something i don t want. - well, i ve had many clients, post-bankruptcy, go on to buy houses, which they ve never been able to do.
- when lenders have no incentives to restrict who they re lending to or how much to loan out, guess what happens to tuition costs? - the colleges raised their price, essentially at will. - and you re paying for it. and college lenders know that. so the more obscene the tuition, and the more ridiculous the gimmicks that colleges play, the richer college lenders become. - so just having the threat of bankruptcy forces the lenders to behave rationally and with a modicum of good faith. - and without those bankruptcy protections, we re left with a self-perpetuating system of greed. - you know, from the outset, this was a legislatively manufactured crisis. - it was the 1998 reauthorization of the higher education act. - the senate will now vote on the adoption of the conference report accompanying hr-6. - mr. biden, mr. bingaman, mr. durbin, mr. feingold, mrs. feinstein, mr. ford.
- bankruptcy. - what do you mean? - it is for all intents, impossible to discharge student loans in bankruptcy. - wait, i thought that all debts could be discharged in bankruptcy. - except for student loans. in 1998, they essentially took bankruptcy protections permanently away for all time from federal student loans. - could this be true? and isn t bankruptcy a bad thing? i think the first time i heard the word bankrupt was from watching wheel of fortune. the audience goes, aw, and you lose all your money. and i just assumed that s something i don t want. - well, i ve had many clients, post-bankruptcy, go on to buy houses, which they ve never been able to do. i ve had two clients actually become multimillionaires. - how hard would it be for me to discharge my student loan debt through bankruptcy? - it s impossible. - i guess bankruptcy is reserved only for the truly neediest cases.
essentially at will. - and you re paying for it. and college lenders know that. so the more obscene the tuition, and the more ridiculous the gimmicks that colleges play, the richer college lenders become. - so just having the threat of bankruptcy forces the lenders to behave rationally and with a modicum of good faith. - and without those bankruptcy protections, we re left with a self-perpetuating system of greed. - you know, from the outset, this was a legislatively manufactured crisis. - it was the 1998 reauthorization of the higher education act. - the senate will now vote on the adoption of the conference report accompanying hr-6. - mr. biden, mr. bingaman, mr. durbin, mr. feingold, mrs. feinstein, mr. ford. - was there, like, an uproar when this happened? was this, like, a big headline at the time? - there was no headline. in fact, i don t think most congressmen even knew that it happened until probably weeks, months,