That’s intentional to foster the growth of entrepreneurship. It’s the ability to do something without being personally liable. It’s a good thing.

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samesamediffer 17 hours ago | parent [-]

How does your argument fail to also apply to student loans?

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Analemma_ 17 hours ago | parent | next [-]

People can decide on what terms they want to loan money to, or invest in, a business, based on how likely they think it is to succeed. And if they guess wrong, tough luck, they should've been smarter. The incentive structure here is to make it easier to raise money with good ideas and harder to raise money with stupid ones.

This incentive structure doesn't exist with student loans: student loans are unconditional, and with terms that don't take into account likelihood of payback.

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dyauspitr 17 hours ago | parent | prev [-]

When companies declare bankruptcy they have to liquidate their assets and pay back as much as they can. How is it different from student loans?

	▲	kadoban 17 hours ago \| parent [-]
		The difference is you _can't_ do that for student loans. There is no option to get rid of them via bankruptcy. So, this happens instead.