Not true, only government backed student loans are non-dischargable via bankruptcy (but there are other programs in place in lieu of bankruptcy including income bases repayment), other types of student loans are.
>Student loans were supposed to be low risk
Low risk to the LENDER not the borrower, they are low risk because they are guaranteed by the federal government
>but the jobs never materialized
That depends on your field of study, it was always a myth that just have any degree would net you a high paying job. If you fell for that will I am sorry you got scammed
STEM fields still have a high ROI on their education, but Liberal Arts, Social "Sciences" and other such non-STEM fields do not and never will
>There's also the matter of people even being able to afford to file for bankruptcy. Just for that you're looking in the ballpark of $1500 in court and attorney fees.
I take it you have never been through a personal bankruptcy. The first thing the lawyer will tell you is to stop all payments on all debt (for Chapter 7), it is with this money you will use to pay the costs and fees. If you have any income at all the filing fees are not a burden. In the event you waited to the point where are literally broke with no assets, and no money at all, only debt well not only did you wait far far far far too long before seeking bankruptcy protection there are ways to do it with deferred payments even some non-profits will help
For most people, you file for bankruptcy protection long before your situation is so dire you do not even have the filing fee money (which is about 1 month part time salary from Walmart)
Not true, only government backed student loans are non-dischargable via bankruptcy (but there are other programs in place in lieu of bankruptcy including income bases repayment), other types of student loans are.
>Student loans were supposed to be low risk
Low risk to the LENDER not the borrower, they are low risk because they are guaranteed by the federal government
>but the jobs never materialized
That depends on your field of study, it was always a myth that just have any degree would net you a high paying job. If you fell for that will I am sorry you got scammed
STEM fields still have a high ROI on their education, but Liberal Arts, Social "Sciences" and other such non-STEM fields do not and never will
>There's also the matter of people even being able to afford to file for bankruptcy. Just for that you're looking in the ballpark of $1500 in court and attorney fees.
I take it you have never been through a personal bankruptcy. The first thing the lawyer will tell you is to stop all payments on all debt (for Chapter 7), it is with this money you will use to pay the costs and fees. If you have any income at all the filing fees are not a burden. In the event you waited to the point where are literally broke with no assets, and no money at all, only debt well not only did you wait far far far far too long before seeking bankruptcy protection there are ways to do it with deferred payments even some non-profits will help
For most people, you file for bankruptcy protection long before your situation is so dire you do not even have the filing fee money (which is about 1 month part time salary from Walmart)