Our friends at www.zerohedge.com have another interesting article. There is a bill in Congress to allow college loan debt to be discharged in bankruptcy.
The far reaching future consequences if this bill passes would be that a large portion of the population that the government is relying on to stimulate the economy would suddenly have a bankruptcy on their credit report for the next 10 years. (Unlike many other negative credit experiences that drop off your credit report sooner, bankruptcy shows up for 10 years.
The new credit reporting guidelines beginning July of this year, where tax liens and civil judgments will be removed from credit reports, will increase the credit score of many by 20- 40 points. This will create even a larger gap in credit unworthiness for the college attendees to overcome.
What could possibly go wrong?