[raxxorrax]

Is there a mechanism for insolvency for debts this large in the US?

I believe I would have skipped higher education if such debt would have been the result. I imagine these policies came from a time where a degree was sure to net you a well paid job. Seems unfitting for todays time especially since the logistical problems of education are irrelevant with modern communication infrastructure.

[_trampeltier]

No, there is no insolvency for student debt. In some states you even lose your driving licence if you don't pay.

[vonmoltke]

That's not true. It's hard, but not impossible as many people think: https://www.npr.org/2020/01/22/797330613/myth-busted-turns-o...

[Lammy]

It's been a progression to nondischargeability over a few decades.

- 1978: Student debt first made nondischargeable, for loans less than five years old at time of filing: https://www.govinfo.gov/content/pkg/STATUTE-92/pdf/STATUTE-9...

  § 523. Exceptions to discharge
  (a) A discharge under section 727, 1141, or 1328(b) of this title
    does not discharge an individual debtor from any debt—
  (8) to a governmental unit, or a nonprofit institution of higher 
    education, for an educational loan, unless— 
    (A) such loan first became due before five years before
      the date of the filing of the petition; or
    (B) excepting such debt from discharge under this paragraph will
      impose an undue hardship on the debtor and the debtor's dependents; or

- 1990: nondischargeability waiting period was later extended to seven years: https://www.govinfo.gov/content/pkg/STATUTE-104/pdf/STATUTE-...

  § 3621.
  Section 523(a)(8) of title 11, United States Code, is amended— 
  (1) by striking "for an educational" and all that follows
    through "unless", and inserting the following: "for an educational
    benefit overpayment or loan made, insured or guaranteed
    by a governmental unit, or made under any program
    funded in whole or in part by a governmental unit or nonprofit
    institution, or for an obligation to repay funds received as an
    educational benefit, scholarship or stipend, unless"; end
  (2) by amending subparagraph (A) to read as follows:
    "(A) such loan, benefit, scholarship, or stipend overpayment
    first became due more than 7 years (exclusive of any applicable
    suspension of the repayment period) before the
    date of the filing of the petition; or".

- 1998: waiting period removed completely, making government-insured student loans nondischargeable: https://www.govinfo.gov/content/pkg/PLAW-105publ244/pdf/PLAW...

  § 971. NONDISCHARGEABILITY OF CERTAIN CLAIMS FOR EDUCATIONAL
    BENEFITS PROVIDED TO OBTAIN HIGHER EDUCATION.
  (a) AMENDMENT.—Section 523(a)(8) of title 11, United States
    Code, is amended by striking "unless—" and all that follows through
    "(B) excepting such debt" and inserting "unless excepting such debt".

- 2005: Nondischargeability expanded to include private student loans as well: https://www.govinfo.gov/content/pkg/PLAW-109publ8/pdf/PLAW-1...

  § 220. NONDISCHARGEABILITY OF CERTAIN EDUCATIONAL BENEFITS AND LOANS.
    Section 523(a) of title 11, United States Code, is amended
  by striking paragraph (8) and inserting the following:
    "(8) unless excepting such debt from discharge under this
  paragraph would impose an undue hardship on the debtor
  and the debtor's dependents, for—
      "(A)(i) an educational benefit overpayment or loan made, insured,
    or guaranteed by a governmental unit, or made under any program
    funded in whole or in part by a governmental unit
    or nonprofit institution; or
      "(ii) an obligation to repay funds received as an educational
      benefit, scholarship, or stipend; or
      "(B) any other educational loan that is a qualified education
      loan, as defined in section 221(d)(1) of the Internal Revenue
      Code of 1986, incurred by a debtor who is an individual;".

- …and, because I was curious what counts as "qualified": https://www.govinfo.gov/content/pkg/USCODE-2009-title26/pdf/...

  (1) Qualified education loan
    The term "qualified education loan" means any indebtedness
  incurred by the taxpayer solely to pay qualified
  higher education expenses—
      (A) which are incurred on behalf of the taxpayer,
    the taxpayer’s spouse, or any dependent of the taxpayer
    as of the time the indebtedness was incurred,
      (B) which are paid or incurred within a reasonable period
    of time before or after the indebtedness is incurred, and
      (C) which are attributable to education furnished during
    a period during which the recipient was an eligible student.

  Such term includes indebtedness used to refinance indebtedness
  which qualifies as a qualified education loan.
  The term "qualified education loan" shall not include any
  indebtedness owed to a person who is related (within the
  meaning of section 267(b) or 707(b)(1)) to the taxpayer
  or to any person by reason of a loan under any qualified
  employer plan (as de-fined in section 72(p)(4))
  or under any contract referred to in section 72(p)(5).

[Lammy]

At least that last "shall not include any indebtedness owed to a person who is related to the taxpayer" part is a pretty sweet deal if you:

- Have a family

- Have a family that have money

- Have a family that have money and are willing/able to loan or give you some of it.