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Instead of student loan debt forgiveness, just make it dischargeable...
Posted on 6/24/19 at 1:36 pm
Posted on 6/24/19 at 1:36 pm
like most other debt (including credit cards.) That way, the student borrower will have to actually make a long-term life decision: do I ruin my credit for 7 years or not? And those actually in need will be able to work out a plan with their creditors which still ultimately results in them paying SOMETHING.
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Posted on 6/24/19 at 1:39 pm to Big Scrub TX
The debt is the symptom of the problem
Tuition costs are where we need to make changes
Tuition costs are where we need to make changes
Posted on 6/24/19 at 1:39 pm to Big Scrub TX
I can agree with this going forward and it would mean more stringent underwriting before loans are given. This would result in poorer (academically and financially) students losing access to loans.
Posted on 6/24/19 at 1:40 pm to HailHailtoMichigan!
quote:Agreed. But the existing debt exists.
The debt is the symptom of the problem
Tuition costs are where we need to make changes
One problem is that the tuition at the top schools is clearly BELOW the market clearing level. How do you solve that without debt?
Posted on 6/24/19 at 1:45 pm to HailHailtoMichigan!
quote:
Tuition costs are where we need to make changes
Yes.
As soon as the fedgov gets involved with helping pay for something, the costs explode.
See Medicare/Medicaid - health car inflation goes almost vertical after it was put in place
College tuition - same thing
Posted on 6/24/19 at 1:47 pm to Big Scrub TX
quote:
like most other debt (including credit cards.) That way, the student borrower will have to actually make a long-term life decision: do I ruin my credit for 7 years or not? And those actually in need will be able to work out a plan with their creditors which still ultimately results in them paying SOMETHING.
if you can discharge the unsecured loan, then the lending rate would be much, much higher.
no collateral required to borrow the money, then you get higher interest rates
to fix the issue,
1)government needs to get out of the loan business.
2)lending based on major/expected income
Posted on 6/24/19 at 1:48 pm to Big Scrub TX
quote:A lot of 22 year olds would gladly ruin their credit for 7 years if it meant getting out of paying tens of thousands of dollars back in student loans. The bankruptcy would be off their credit by the time most of them would be settling down and looking to buy houses anyway. There's a reason why banks don't usually give large lines of unsecured credit to people who don't have a lengthy credit history.
That way, the student borrower will have to actually make a long-term life decision: do I ruin my credit for 7 years or not?
Posted on 6/24/19 at 1:50 pm to Big Scrub TX
quote:The problem with this lies in the fact that there isn't currently a mechanism to attach value to the loans so, if people knew they could eventually discharge them, there's almost a perverse incentive to take as many loans as possible!
Instead of student loan debt forgiveness, just make it dischargeable...
Posted on 6/24/19 at 1:50 pm to Big Scrub TX
Why are y'all suddenly all wanting to bailout high income earners? Y'all must really hate the poor.
Posted on 6/24/19 at 1:50 pm to ShortyRob
quote:
there isn't currently a mechanism to attach value to the loans
Lobotomies.
Posted on 6/24/19 at 1:51 pm to HailHailtoMichigan!
quote:
The debt is the symptom of the problem
Tuition costs are where we need to make changes
Um, you literally flipped them.
Tuition costs are the symptom
The availability of nearly free money is the problem
Posted on 6/24/19 at 1:51 pm to Big Scrub TX
Correct me if I'm wrong, but student loan statistics are way worse at for-profit colleges that target older adults. These for-profit colleges are incredibly overpriced for a generally shitty degree.
Posted on 6/24/19 at 1:51 pm to Big Scrub TX
quote:
Agreed. But the existing debt exists.
Can someone tell me why I should care (or, have to "do something about") when someone borrows money and can't pay?
Seriously, I just don't care about your bad decisions. Now, the Fed Gov should address the "crises" by getting the frick out of it.
Posted on 6/24/19 at 1:52 pm to Big Scrub TX
I've been saying this for some time. There is no market driven reason for student debt to be the magic debt that gets to follow you around for life. Lenders need to vet students, institutions, and courses of study like they would for any other loan.
This post was edited on 6/24/19 at 1:54 pm
Posted on 6/24/19 at 1:52 pm to Big Scrub TX
There needs to be a tiered system when lending money for college.
Engineering - 2.5%
Social Justice - 28.3%
Engineering - 2.5%
Social Justice - 28.3%
Posted on 6/24/19 at 1:53 pm to HailHailtoMichigan!
quote:
The debt is the symptom of the problem
Tuition costs are where we need to make changes
You've got that backwards in all likelihood. Debt being as easily obtainable as it is has caused tuition to skyrocket.
Posted on 6/24/19 at 1:54 pm to HailHailtoMichigan!
Actually, it’s the federal government backing the loaning. No federal backing, and only a fraction of those currently receiving loans would be eligible. That means the demand for higher ed degrees would go down and tuition would decline as a result.
Posted on 6/24/19 at 1:54 pm to Boatshoes
quote:You can't make loans dischargeable that you also subsidize and place next to no limit on acquiring.
I've been saying this for some time.
In very short order, people would make the current level of student debt look like child's play!
Posted on 6/24/19 at 1:55 pm to BlackHelicopterPilot
quote:
Can someone tell me why I should care (or, have to "do something about") when someone borrows money and can't pay?
You don't have to care, but the inability for people to pay back loans almost destroyed the US economy. That bailout - as unpopular as it is/was - saved the system.
Posted on 6/24/19 at 1:55 pm to Big Scrub TX
In fact, the GOP should move quickly to get this done... Before their inaction gets them something far worse.
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