read the following article
U.S. News: Obama Floats Bankruptcy Process for Some Student Debt
Mitchell, JoshView Profile. Wall Street Journal, Eastern edition [New York, N.Y] 11 Mar 2015: A.3.
1-Is student debt currently treated different in bankruptcy proceedings than credit card debt or mortgages? If so, how is the treatment different?
2-Would this differential treatment tend to make interest rates on student loans higher or lower? Why?
3-Given your answer to the question above, what would be the impact of Obama’s suggested change on new student loan interest rates? Would that help or hurt student borrowers?
4-From a student perspective, do you support this suggested change? Why or why not?
5-From a lender perspective, would you support this suggested change? Why or why not?
6-Is it ethical to change the bankruptcy treatment of a certain type of debt after the terms (including rate) have been agreed to and money loaned? Why or why not? (Hint: How would you feel if your professor raised all the point cutoffs for grades by 3% after the drop date for the course?)
7-If such changing of the rules after agreements are made becomes commonplace, will this encourage more or less lending? Why?