Why should student debt be non-dischargeable?
I had not realized this until recently, but the 2005 Bankruptcy Act actually made all student loan debt (including from for-profit institutions) non-dischargeable. The term is not immediately clear, necessarily, but it means that no matter what sort of bankruptcy you go into, you can’t get rid of your student debt. I would note that while for the most part our tax policy heavily encourages capital formation, it’s weird to have policies that encourage human capital formation and then punishes the people who actually took the risk to invest in it (ie, the students) while protecting creditors from any risk of principal loss.
This seems messed up.