- My Forums
- Tiger Rant
- LSU Recruiting
- SEC Rant
- Saints Talk
- Pelicans Talk
- More Sports Board
- Fantasy Sports
- Golf Board
- Soccer Board
- O-T Lounge
- Tech Board
- Home/Garden Board
- Outdoor Board
- Health/Fitness Board
- Movie/TV Board
- Book Board
- Music Board
- Political Talk
- Money Talk
- Fark Board
- Gaming Board
- Travel Board
- Food/Drink Board
- Ticket Exchange
- TD Help Board
Customize My Forums- View All Forums
- Show Left Links
- Topic Sort Options
- Trending Topics
- Recent Topics
- Active Topics
Started By
Message
Govt should allow free market to fix student loan debt
Posted on 4/9/22 at 12:14 pm
Posted on 4/9/22 at 12:14 pm
What bank would loan an 18-23 year old with no work/life experience, money, collateral, etc $30-250k for anything?
A bank would never secure a loan for any asset even if it was worth more than the loan because they know the odds of that person paying it back is bad. It’s too risky.
The government has set up a system that has allowed young people to borrow exorbitant amounts of money. This is what has pushed the cost of “education” so high. They should get out of the way and let the free market lower the cost.
The reality is most college programs are wasteful by giving degrees to folks who do not have a mental capacity worthy of university in disciplines that will not provide viable occupation and doing so for longer periods of time than necessary by adding unnecessary classes.
If you opened it up to the free market coursework would become leaner and better focused, you’d see a number of colleges close, more people going into useful disciplines, better financial foundations for young adults not saddled with debt, and many more benefits.
A bank would never secure a loan for any asset even if it was worth more than the loan because they know the odds of that person paying it back is bad. It’s too risky.
The government has set up a system that has allowed young people to borrow exorbitant amounts of money. This is what has pushed the cost of “education” so high. They should get out of the way and let the free market lower the cost.
The reality is most college programs are wasteful by giving degrees to folks who do not have a mental capacity worthy of university in disciplines that will not provide viable occupation and doing so for longer periods of time than necessary by adding unnecessary classes.
If you opened it up to the free market coursework would become leaner and better focused, you’d see a number of colleges close, more people going into useful disciplines, better financial foundations for young adults not saddled with debt, and many more benefits.
26
Posted on 4/9/22 at 12:18 pm to Upperaltiger06
Remember when Obama was praised for reforming student loans? At some point you would expect liberals to open their eyes.
Posted on 4/9/22 at 12:19 pm to Upperaltiger06
Tie the interest rate to your major and your school. The higher the default rate for each, the higher the interest rate.
Schools will be forced to stop offering bogus majors, stop overcharging, and start having competent career services centers.
Schools will be forced to stop offering bogus majors, stop overcharging, and start having competent career services centers.
Posted on 4/9/22 at 12:24 pm to Upperaltiger06
The debtor is a slave to the lender. The government likes it some slaves.
Posted on 4/9/22 at 12:27 pm to Upperaltiger06
The govt didn't used to be in the student loan business. They should get out. Everything would take care of itself. A whole bunch of kids who have no business in college will look for a job after HS. Everyone would be better off.
Posted on 4/9/22 at 12:28 pm to Upperaltiger06
Just allows them to further indoctrinate them after high school - to finish the job in other words.
Posted on 4/9/22 at 12:28 pm to Upperaltiger06
This post was edited on 5/26/22 at 7:44 am
Posted on 4/9/22 at 12:31 pm to Upperaltiger06
They wont do that because every overpaid academic administrator who is benefitting from the gravy train donates heavily to the Dem party. Not a single Dem would ever vote to dismantle this system
Posted on 4/9/22 at 12:35 pm to Upperaltiger06
quote:Im becoming more convinced by the day thst if you can’t get a scholarship, you don’t really belong at university.
The reality is most college programs are wasteful by giving degrees to folks who do not have a mental capacity worthy of university in disciplines that will not provide viable occupation and doing so for longer periods of time than necessary by adding unnecessary classes.
Posted on 4/9/22 at 12:45 pm to Taxing Authority
The government created the problem by doing two things.
1. They guarantee the loan but don’t stop banks from collecting after after the government pays.
For example Bill borrows 50,000 and defaults the government pays the bank 50,000 then the bank gets to hound Bill for the rest of his life until he pays off the 50,000 so banks make more money on those who default. This encourages banks to give large amounts of money to people with little chance of repaying the loan on time.
2. All the easy money has forced colleges to compete on luxuries instead of price.
I visited four colleges this week with my kids and no college spoke about cost they all emphasized luxuries like student rec centers , lazy rivers, awesome apartment style dorms, etc.
1. They guarantee the loan but don’t stop banks from collecting after after the government pays.
For example Bill borrows 50,000 and defaults the government pays the bank 50,000 then the bank gets to hound Bill for the rest of his life until he pays off the 50,000 so banks make more money on those who default. This encourages banks to give large amounts of money to people with little chance of repaying the loan on time.
2. All the easy money has forced colleges to compete on luxuries instead of price.
I visited four colleges this week with my kids and no college spoke about cost they all emphasized luxuries like student rec centers , lazy rivers, awesome apartment style dorms, etc.
Posted on 4/9/22 at 12:58 pm to Upperaltiger06
The same could be said for flood insurance as well.
Posted on 4/9/22 at 1:03 pm to Upperaltiger06
I’ve long said you shouldn’t be able to borrow more than the average public school cost of attendance in your state.
Want to go to Tulane? You can borrow what it costs to go to LSU.
Want to go to Tulane? You can borrow what it costs to go to LSU.
Posted on 4/9/22 at 1:27 pm to Upperaltiger06
quote:
The reality is most college programs are wasteful by giving degrees to folks who do not have a mental capacity worthy of university in disciplines that will not provide viable occupation and doing so for longer periods of time than necessary by adding unnecessary classes.
You still need to go to college to be in any prominent profession.
How many doctors/nurses, lawyers, engineers, finance/accounting folks didn't go to college?
Posted on 4/9/22 at 1:31 pm to Upperaltiger06
The Wife and I just finished putting our Son through UF where he earned his Electrical Engineering Degree. We didn’t borrow a dime to do it. We paid it out of our pocket. We started his college savings immediately after he was born and never slacked up on contributing. It was a lot of sacrifice. We could have been taking trips and buying BMW’s every few years. Instead, we went old school and paid for it.
He gets to start out his adult life with zero debt and a six figure job. His life can be extraordinarily because of those choices that we made as responsible parents.
He had the choice to go In State to UF or out of state to Georgia Tech. Gt was very expensive and it would have made him rack up a ton of student loan debt. He chose wisely and stayed in Florida. (Not so subtle brag that our Son is really smart).
Good financial decisions matter.
He gets to start out his adult life with zero debt and a six figure job. His life can be extraordinarily because of those choices that we made as responsible parents.
He had the choice to go In State to UF or out of state to Georgia Tech. Gt was very expensive and it would have made him rack up a ton of student loan debt. He chose wisely and stayed in Florida. (Not so subtle brag that our Son is really smart).
Good financial decisions matter.
Posted on 4/9/22 at 1:46 pm to Upperaltiger06
It would be a valuable life lesson for those with student debt to have to pay it back or default (if the banks would actually eat the debt. As it stands it’s a huge moral hazard and forgiving the debt sends the wrong message to all parties.
Posted on 4/9/22 at 1:53 pm to TimeOutdoors
I think you are overlooking the reason Obama had the government take over the loan program.
This was nothing more than a scheme to line the pockets of his Dem friends and provide money to be funneled back to the Democratic party.
Had nothing to do with “education “, other than make it easier to indoctrinate more young people in our universities.
Look at the structure of the loan program and convince me otherwise
This was nothing more than a scheme to line the pockets of his Dem friends and provide money to be funneled back to the Democratic party.
Had nothing to do with “education “, other than make it easier to indoctrinate more young people in our universities.
Look at the structure of the loan program and convince me otherwise
Posted on 4/9/22 at 2:37 pm to Upperaltiger06
how many schools will shut down if they did this?
A lot. They should do it.
A lot. They should do it.
Posted on 4/9/22 at 5:25 pm to LSUwag
quote:
The Wife and I just finished putting our Son through UF where he earned his Electrical Engineering Degree. We didn’t borrow a dime to do it. We paid it out of our pocket. We started his college savings immediately after he was born and never slacked up on contributing. It was a lot of sacrifice. We could have been taking trips and buying BMW’s every few years. Instead, we went old school and paid for it.
He gets to start out his adult life with zero debt
We did the same thing with our son, he graduated from UF six years ago debt-free with a civil engineering degree. He landed a job three days after graduating and loves it.
As you said, it took sacrifice and doing without a few luxuries, but it was well worth it. The problem with today’s society is…very few are willing to make sacrifices, they want government to take care of them.
Posted on 4/9/22 at 6:10 pm to Zach
Zach states it best.
The Federal Government needs to get out of the education business completely including the Federal Dept. Of Education with its federal budget of $79 billion annually
The Federal Government needs to get out of the education business completely including the Federal Dept. Of Education with its federal budget of $79 billion annually
Posted on 4/9/22 at 6:11 pm to Upperaltiger06
quote:
What bank would loan an 18-23 year old with no work/life experience, money, collateral, etc $30-250k for anything?
I can see them loaning the money for a valuable major, but underwater basket weaving gender studies can just do work study and not be able to get a loan.
Page 1 of 2
Popular
Back to top
Follow TigerDroppings for LSU Football News