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Wednesday, January 2, 2013

Ending Student Loan Exceptionalism: The Case for Risk-Based Pricing and Dischargeability

Peter Zuckerman (Wachtell, Lipton, Rosen & Katz, New York), Note, Ending Student Loan Exceptionalism: The Case for Risk-Based Pricing and Dischargeability, 126 Harv. L. Rev. 587 (2012):

This Note proposes a two-part solution to the growing student loan crisis associated with higher education in general and law schools in particular. On the front end, it argues that student loans should be priced in a risk-based manner that would dissuade many individuals, including those thinking of attending law school, from assuming what proves to be unmanageable debt. On the back end, it argues that student debt that has been assumed and proven unmanageable should be more easily dischargeable in bankruptcy.

http://taxprof.typepad.com/taxprof_blog/2013/01/ending-student-loan.html

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Comments

This Zuckerman guy seems like a sensible fella. Been saying since I started law school that risk-based pricing/bankruptcy was the way to go. It'd make a lot more sense than piling the entirety of the risk on 18 year old kids who don't really know what they're doing.

Posted by: F.T. McGruff | Jan 2, 2013 5:21:35 PM

When I got to the part about ignoring the creditworthiness of student borrowers, I had to stop reading. Visions of Fannie and Freddie swam before my eyes. My head ached. Even more so, my wallet. And so on . . . .

Posted by: Jake | Jan 2, 2013 5:46:56 PM