>>>> Here's a crazy thought... you can't take out a mortgage until your
>>>> student loan is paid off... that'd throw a monkey wrench into things,
>>>> now wouldn't it?  Or you're banned from purchasing a NEW car until
>>>> student loan debt doesn't show on your credit history?

>>> Great, fascism!

>> Why "fascism"? Doesn't seem to have much to do with subsidized loans.

> Not allowing private parties to deal in loans that they both agree to
> and which would normally be considered tame would be a form of fascism.

Fascism is an insult in search of a definition* , but the general intent of 
the statement is understood.

IANAL, IPTS but:
If you apply for a loan the lender has the right to impose whatever legal 
conditions they may wish, and you may choose whether to accept them. If you 
eg raise a mortgage on your home the lender has certain rights over the way 
the property is 'managed', has first claim to the proceeds of any sale, and 
may impose a legal restriction (Caveat in our country **) on the raising of 
additional mortages or other aspects of the property's control.

Now, a student is not a home and a student loan is not a mortgage, BUT the 
point has been made that the very differences which make it impossible to 
hold a student fire-sale or similar (bring back slavery?) require special 
treatment and that even the normal protection afforded by bankruptcy may not 
apply to such transactions. It is 'natural justice' (IMHO as always) that in 
the case of a mortgage that isn't a mortgage the lender should be afforded 
some of the protections of a caveat that isn't a caveat. The borrower enters 
(relatively) freely into the transaction and as long as the conditions apply 
up front, can have little grounds for complaint.

In many cases, people who enter into transactions of this nature do in fact 
complain after the event, and see no great harm in working the system, 
taking the moiney and running and similar. This is a good (IM ...) example 
of the sort of issues that have been being addressed under the current 
thread - responsibility and accountability and self control are foundational 
values which, once eroded, lead to trillion dollar overseas debts, paying 
off someone else's Olympic games in about 4 months and sub-prime loan 
disasters.

Translate the caveat language below into the student loan context, or most 
of the others related to this thread. If the analysis still says "fascism" 
then a new dictionary may be required :-)


  Russell

* http://en.wikipedia.org/wiki/Definitions_of_fascism

** 
http://www.ccc.govt.nz/QuickAnswers/BuildingPlanning/Subdivision/F1874.asp
A caveat is an instrument registered against a Certificate of Title which 
prevents certain actions taking place with the Title. For example an owner 
may not be able to register a new mortgage or variation of mortgage, or 
transfer the property without the consent of the caveator (the person or 
body that registered the caveat over the property).

Caveats registered by council are usually to protect some form of 
non-compliance of building or planning matters, and are registered to also 
act as a warning to prospective purchasers of the property that there is 
some form of non-compliance or monetary payment outstanding on the property.


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