[TimPC]

Some people have far more than $100k in debt, so the tradeoff might be far more attractive.

If you're finishing undergrad at 22, your bankruptcy won't harm you for buying a house at 29-30 which is kind of when you want to buy a house anyways since saving up 25% takes a good amount of time. It seems like a very worthwhile trade to declare bankruptcy.

As for being allowed to declare, the time to do it is before you have a job. At this point you have debt higher than assets and no income so the case for bankruptcy is extremely clear.

[onlyrealcuzzo]

> Some people have far more than $100k in debt, so the tradeoff might be far more attractive.

That would be the lender's problem for lending far more than anyone reasonably needs to be lent to obtain a degree. They'd have to price the loan accordingly.

> It seems like a very worthwhile trade to declare bankruptcy.

You don't get to just declare bankruptcy on a whim because the outcome is favorable to you.

[TimPC]

> You don’t get to just declare bankruptcy on a whim because the outcome is favourable to you.

I’ve addressed this in the above by mentioning when you do it. You have assets < debt and no job therefore no income. No court is going to reject this bankruptcy because you are actually underwater and will in theory take infinite time to repay the amount you owe.