So I'm studying about the 1976 student loan act congress made and I'm trying to understand this "in 1976, the student loan industry lobbied congress to make their debt non-dischargeable in bankruptcy." Now I'm assuming it means that the borrower/student who took out the student loan will still have to pay the loan off, even if they file for bankruptcy. But the way it's worded, it makes it sound like it's the student loan company/bank will still have to pay it's debt even if it files for bankruptcy

NO, the student even under the modern student loan law, can not discharge the loan during bankruptcy normally. There are exceptions but they are so hard to do, basically they are not discharged.

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Originally Posted by Allen Farber

So I'm studying about the 1976 student loan act congress made and I'm trying to understand this "in 1976, the student loan industry lobbied congress to make their debt non-dischargeable in bankruptcy." Now I'm assuming it means that the borrower/student who took out the student loan will still have to pay the loan off, even if they file for bankruptcy. But the way it's worded, it makes it sound like it's the student loan company/bank will still have to pay it's debt even if it files for bankruptcy

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Seriously? You think it says that?

The person and/or the cosigner will be held responsible for paying it... no quick and easy Bankruptcy to get out of THAT obligation.

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Originally Posted by ScottGem

Seriously? You think it says that?

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I didn't think so, it's just the way it's worded. They say "The company lobbied congress to make their debt non-dischargeable" they don't say "the company lobbied congress to make the borrower's debt non-dischargeable"

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Originally Posted by Fr_Chuck

NO, the student even under the modern student loan law, can not discharge the loan during bankruptcy normally. There are exceptions but they are so hard to do, basically they are not discharged.

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Thanks

You took one sentence out of contest. A sentence that was not part of the law, but one writer's explanation of the law. I would be willing to bet that the whole section made it clearer (not that it wasn't clear) they were referring to the borrower not the lender. It makes no sense to refer to the lender.

I remember you without even looking back at old posts, because of the mind-boggling nature of your school hopping.

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Originally Posted by ScottGem

You took one sentence out of contest. A sentence that was not part of the law, but one writer's explanation of the law. I would be willing to bet that the whole section made it clearer (not that it wasn't clear) they were referring to the borrower not the lender. It makes no sense to refer to the lender.

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Lol I'm not disagreeing with you, I even said it makes no sense to refer to the lender, I was just making sure. That was the only part that referred to it, the rest of the section was just showing how most banks made money from interest.

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Originally Posted by joypulv

I remember you without even looking back at old posts, because of the mind-boggling nature of your school hopping.

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Wish I could remember you, but I can't distinguish you from the rest of the users that jumped on the bandwagon of making fun of me for asking questions.

Nobody made fun of you for asking questions. It was the nature of the questions. They were questions no reasonably intelligent and thinking person would have to ask.

I didn't mind the questions. I just seem to recall that you decided on a school change just before you finished one career path, to change to another.
Nothing wrong with that except for the massive debt you incurred, which I can't find now, because page 2 of your old posts claims to exist but shows nothing when I go there.
I'm worried that you are wishing and hoping to find some arcane gov't policy somewhere that gets you out of that debt.

Please correct me if I'm wrong.

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Originally Posted by joypulv

I didn't mind the questions. I just seem to recall that you decided on a school change just before you finished one career path, to change to another.
Nothing wrong with that except for the massive debt you incurred, which I can't find now, because page 2 of your old posts claims to exist but shows nothing when I go there.
I'm worried that you are wishing and hoping to find some arcane gov't policy somewhere that gets you out of that debt.

Please correct me if I'm wrong.

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Yeah, I'm not in debt. I've just spent a lot of money on tutors that haven't helped me in the slightest. Most of the tuition I used my own money, but the rest was some I got from the bank, and I'm almost finished paying it off.

No one in Canada can get out of student loans. They are used in the most incomprehensible ways like car loans, etc. and no enducation.

Are we not smarter ?