CERF Blog

Student loans now total over $1 trillion and delinquency rates are rising.  Many young people are burdened in their 20’s with tens of thousands of dollars of student debt.  Some commentators have pointed to student loans as the “next subprime.”  What does this mean?  Does it mean that student loan defaults are expected to cause… Read more

Yesterday I argued that student loans should be dischargable in bankruptcy.  Given that they are not dischargable, an economist would expect to see insurance available, insurance that would pay the loan if students were incapable of paying it themselves. Since we don’t see the insurance, I assume the reason has to do with asymmetrical information… Read more

Not allowing student loans to be discharged in bankruptcy under any conditions is simply barbaric, just one step away from debtors prisons.