this post was submitted on 10 Aug 2023
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Comradeship // Freechat

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[–] [email protected] 11 points 1 year ago

Student Loan Asset Backed Securities (SLABS) are too important for wallstreet and banks to use as assets in investing. If the government forgave that debt it would break a fundamental part of what props up the economy. Rich people might actually loose money. That's part of the reason Biden made it impossible to get out of student loans via bankruptcy. A bankruptcy cleared debt becomes a worthless asset to whoever bought it.

It's safer to assume the whole of the US will collapse before they forgive student loans.