[nradov]

A bankruptcy can only remain on a consumer's credit report for 10 years. And even within that period, if the consumer pays other debts on time then after a few years a bankruptcy will have only a minor impact on credit score. So for someone who graduates from college at age 22 with $150K in student debt it would be economically rational to immediately file bankruptcy and discharge the debt. At worst he would have to wait until age 32 to qualify for a mortgage, and probably not even that long. The government shouldn't encourage this. We need to find ways to prevent students from needing to borrow so much in first place.