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"Education is the most powerful weapon which you can use to change the world”
– Nelson Mandela

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Discussion Week 13

Discussion Week 13

Q In this week's chapter we have looked at bankruptcy from the standpoint of a business as well as individual. But do you know that an individual has a student loan, the loan is not dischargeable in a bankruptcy proceeding unless payment of the loan would cause undue hardship (page 426)? How do you feel about this law? Would you want student loans to be available as debts able to be discharged in a bankruptcy? Why or why not? There are a number of stories that have been covered in the media these last few week regarding student loan forgiveness, and you may wish to look up story before posting your discussion. You will be awarded 16 points for posting only your discussion and 4 additional points for posting feedback to another student's post.

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I believe the law on non-dischargeable nature of student loan is fair and appropriate. This has to do with the number of people that could qualify for a student loan and the possibility to take back the asset from the debtor. If a sizeable number of people take student loans and choose to use the bankruptcy proceeding to discharge such loan, then the system could be exploited by bad actors. Now the knowledge gained from school is intangible in nature and there is no way for a creditor to repossess such knowledge or deny the debtor (student) the access to use the knowledge.