At the start of 2 0 2 3 , 4 5 million U . S . borrowers
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Question:
At the start of million US borrowers owed more than $ trillion in outstanding student loan balances. Some suggest reducing the interest rates that can be charged to alleviate this massive debt and imposing student loan debt forgiveness after a certain period.
Under certain conditions, borrowers can ask a bankruptcy court to discharge their student loan debts. To do so under the "Brunner Test" borrowers must show that:
Based on current income and expenses, they cannot maintain a minimal standard of living.
These circumstances are likely to last for a significant amount of time.
They have made goodfaith efforts at repayment.
Student loan forgiveness is popular with the public; however, these strategies raise several ethical questions.
Discussion Prompt
Do you think the "Brunner Test" is fair given that there are borrowers who have already paid off their student loans?
Should consideration be made for students who paid off their loans or for students who had a low gpa?
Is it fair to put taxpayers on the hook" for such a large amount of unpaid student debt?
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
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