• AutistoMephisto@lemmy.world
    link
    fedilink
    arrow-up
    48
    ·
    10 months ago

    Reminder that student loans, like mortgages, are rolled up into an investment vehicle called the SLABS, or Student Loan Asset Backed Securities. Student Loan Forgiveness would tank the value of the SLABS, and I guarantee you our elected officials have money tied up in them. Since a student loan can’t be discharged through bankruptcy, it’s typically a very safe investment.

    • argarath@lemmy.world
      link
      fedilink
      arrow-up
      20
      arrow-down
      6
      ·
      10 months ago

      It is absolutely HORRIBLE and immortal to have an investment that gains money of others being in debt. That is SO fucked up

    • chiliedogg@lemmy.world
      link
      fedilink
      arrow-up
      5
      arrow-down
      3
      ·
      10 months ago

      Government student loans can’t be discharged.

      I got private student loans, and eventually stopped paying and they were discharged. The discharge counted as income on my taxes, but still way cheaper than paying criminal interest for 30 years.

      • prole@sh.itjust.works
        link
        fedilink
        English
        arrow-up
        1
        ·
        10 months ago

        It may be technically possible to get private student loans discharged, but from what I understand, they’ve made it incredibly difficult.

        • chiliedogg@lemmy.world
          link
          fedilink
          arrow-up
          3
          arrow-down
          1
          ·
          10 months ago

          Mine were super easy. I simply didn’t pay them for a few years and they wrote them off. It hit my credit like a freight train and since the discharged debt counted as income April was pretty rough that year.

          Pretty soon the defaults will fall off my credit report and I’ll be 100% recovered, though likely blacklisted by the bank.

          And the funny thing is if they’d just let me defer payments and freeze interest for a few years like I’d requested, I’d actually have the income now to make payments. I didn’t want to not pay my loans, but food and rent came first.