Student Debt Burdened Them, So They Moved Abroad and Stopped Paying

Corporate vs. Personal Debt & Bankruptcy

• Many compare student debt to corporate borrowing: companies routinely walk away via bankruptcy when it’s rational.
• Key distinction raised: most debts can be discharged through bankruptcy after assets are liquidated; U.S. student loans generally cannot, so people instead flee or default informally.
• Some argue this asymmetry is deliberate to promote entrepreneurship but not “human thriving”; others say it prevents mass post‑graduation bankruptcies by asset‑poor young borrowers.

Morality of Defaulting / Moving Abroad

• One camp sees refusing to pay when able as straightforwardly immoral: breaking a deal after receiving value.
• Others frame payment as a business decision, not a moral one, especially when lenders and schools knowingly issue high‑risk, federally backed loans.
• Some explicitly justify “consumer equivalents” of corporate games (strategic bankruptcies, tax arbitrage), citing an illegitimate or unfair system.
• A minority goes further, calling debt largely a social construct used to control younger generations.

Loan Structure, Risk, and Interest Rates

• Several note U.S. student loans are very low‑risk to lenders (federal guarantees, bankruptcy protections) yet carry relatively high interest.
• Debate arises about why private lenders don’t undercut federal rates; responses cite capital requirements, risk, and barriers to entry.

International Comparisons and Enforcement

• Dutch system: low interest, income‑based repayments, long-term forgiveness; some still emigrate over relatively small monthly payments.
• The Netherlands can block passport renewals for significant arrears; some call this a human rights violation, others see it as limited leverage.
• In the U.S., student debt is likened to a quasi‑tax for education, also largely non‑dischargeable; similar passport blocks exist for some other debts (e.g., child support).

Education Choices & Personal Responsibility

• Several criticize choosing expensive out‑of‑state or private programs, especially in low‑ROI fields, as poor judgment.
• Others push back against “only STEM/tech is acceptable,” arguing for broader educational value but at more reasonable in‑state/community‑college costs.

Psychological and Practical Burdens

• Some are baffled by defaults on seemingly small income‑based payments; others highlight constant servicer harassment, paperwork games, and policy instability.
• Personal anecdotes describe disability, healthcare traps, and changing federal rules eroding trust that government will honor promised relief.

System Design & Proposed Fixes

• Suggestions include allowing student loans in bankruptcy, shifting losses to universities, and fundamentally restructuring or socializing higher‑ed funding.
• Some argue the current debt‑driven model is functioning as intended: binding workers to the system via education and healthcare costs.