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Big Scrub TX
LSU Fan
Austin
Member since Dec 2013
19074 posts

Instead of student loan debt forgiveness, just make it dischargeable...
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.


HailHailtoMichigan!
LSU Fan
Trabuco Canyon, CA
Member since Mar 2012
53938 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
The debt is the symptom of the problem

Tuition costs are where we need to make changes


Dawgfanman
Member since Jun 2015
6838 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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.


Big Scrub TX
LSU Fan
Austin
Member since Dec 2013
19074 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
quote:

The debt is the symptom of the problem

Tuition costs are where we need to make changes
Agreed. But the existing debt exists.

One problem is that the tuition at the top schools is clearly BELOW the market clearing level. How do you solve that without debt?


udtiger
LSU Fan
Louisiana
Member since Nov 2006
58061 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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


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110
tigeraddict
LSU Fan
Baton Rouge
Member since Mar 2007
7370 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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






Tiger Prawn
LSU Fan
Member since Dec 2016
12373 posts
 Online 

re: Instead of student loan debt forgiveness, just make it dischargeable...
quote:

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?
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.


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80
ShortyRob
LSU Fan
Member since Oct 2008
69539 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
quote:

Instead of student loan debt forgiveness, just make it dischargeable...

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!


junkfunky
LSU Fan
Member since Jan 2011
27237 posts
 Online 

re: Instead of student loan debt forgiveness, just make it dischargeable...
Why are y'all suddenly all wanting to bailout high income earners? Y'all must really hate the poor.


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31
junkfunky
LSU Fan
Member since Jan 2011
27237 posts
 Online 

re: Instead of student loan debt forgiveness, just make it dischargeable...
quote:

there isn't currently a mechanism to attach value to the loans


Lobotomies.


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ShortyRob
LSU Fan
Member since Oct 2008
69539 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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


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131
GetCocky11
South Carolina Fan
Arlen, TX
Member since Oct 2012
34719 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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.


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BlackHelicopterPilot
LSU Fan
Top secret lab
Member since Feb 2004
47665 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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.


Boatshoes
Member since Dec 2017
4488 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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 at 1:54 pm


upgrayedd
Lamar Fan
Lifting at Tobin's house
Member since Mar 2013
93461 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
There needs to be a tiered system when lending money for college.

Engineering - 2.5%

Social Justice - 28.3%


slackster
Stanford Fan
Houston
Member since Mar 2009
58013 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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.


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30
kingbob
LSU Fan
Sorrento, LA
Member since Nov 2010
48990 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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.


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20
ShortyRob
LSU Fan
Member since Oct 2008
69539 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
quote:

I've been saying this for some time.

You can't make loans dischargeable that you also subsidize and place next to no limit on acquiring.

In very short order, people would make the current level of student debt look like child's play!


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50
slackster
Stanford Fan
Houston
Member since Mar 2009
58013 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
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.


Boatshoes
Member since Dec 2017
4488 posts

re: Instead of student loan debt forgiveness, just make it dischargeable...
In fact, the GOP should move quickly to get this done... Before their inaction gets them something far worse.


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