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“We obviously have not cracked that nut but we want to keep working on it,” said Ted Mitchell, the Education Department’s undersecretary. He said many defaulted borrowers dropped out of school and are underemployed.
This is surreal. Could they be any more patronizing?
There's a simple solution, the Feds should cutoff loans for schools that don't get their students jobs. The government are the only ones that are able to accurately calculate which schools are completely worthless. In fact they should take it one step further and advertise to the whole world what percentage of students get jobs in their studied field and the average starting salary. That would finally put some market…
[0]: http://www.cbc.ca/news/business/everest-college-closure-no-s...
Not surprising. Lots of kids are holding out hoping that someone will get elected and wave a wand to magically erase the money they borrowed.
Besides, the students described in the article graduated long before Bernie sanders arrived on the scene. He was clearly not a factor in their decision to attend in the first place.
A big takeaway from this article (for me) is that people are surprised that 17 year old kids don't understand what they're doing when they take out that college loan. Shock and astonishment despite there being little to no preparation for this kind of financial understanding previously in their education. That surprise and shock shocks and surprises me. Honestly it kind of reminds me of the whole Yelp minimum wage th…
A big problem is that at age 17, all of the adults are saying go to college & take out these loans. Guidance councilors, teachers, parents. The most compliant high schoolers will just do what they are told without thinking about it further. I imagine this will start changing. When I was a kid, that group of adults had the benefit of cheap degrees. Today, now that group of adults is us and we did not go to school chea…
Thankfully I thought it foolish to put myself in significant debt for an education I wasn't passionate about and a direction I wasn't sure about. The whole "just go and get it done" excuse is thrown at a _lot_ of young adults and those loans are sure easy to get. Just crazy.
> The Education Department has assembled a “behavioral sciences unit” to study the psychology of borrowers and why they don’t repay. Ha! There is a bit of a hypocrisy there -- if big banks / companies piss away money and choose to strategically default then (and some even get bail-outs), it is just business. If people do it for whatever reason, well clearly the are immoral, deficient somehow, their psychology needs t…
The TARP bailout was not money just handed out to banks. It was loans to banking and other industries which was repaid in full overall. And in fact it was the auto industry which failed to repay the loan, not the banking industry. I'm not a fan of the financial sector but let's keep the facts straight here
Thats how its supposed to work, in the UK at least. Student Loans are like a distributed tax that only gets paid by the grads who earn enough to repay. edit: Also, in the UK, once you do earn enough, payment is automatic via deductions from payslips.
That's a terrible system, IMO. Why should we be rewarding B-Ark people while at the same time punishing people who get degrees in Engineering and Medicine? I can understand the logic for tax-supported universities (not necessarily agree, but understand), but this just seems... intellectually dysgenic.
My wife is one of these borrowers. She has a master's degree in teaching. It cost her over $100k to get and she can't find job that would pay her enough that she'd be required to pay anything back. I've seen her loan repayment docs and her minimum payment due is $0 every month. While I think her decision to get a masters in education was a bad one (before we were married) I laugh at an institution that would loan her…
Don't teachers usually have loan forgiveness programs after X-years? I think a lot of government associated jobs offer a perk like this. I'm not sure if this is state specific or not though.
A big takeaway from this article (for me) is that people are surprised that 17 year old kids don't understand what they're doing when they take out that college loan. Shock and astonishment despite there being little to no preparation for this kind of financial understanding previously in their education. That surprise and shock shocks and surprises me. Honestly it kind of reminds me of the whole Yelp minimum wage th…
A big problem is that at age 17, all of the adults are saying go to college & take out these loans. Guidance councilors, teachers, parents. The most compliant high schoolers will just do what they are told without thinking about it further. I imagine this will start changing. When I was a kid, that group of adults had the benefit of cheap degrees. Today, now that group of adults is us and we did not go to school chea…
> I imagine this will start changing. When I was a kid, that group of adults had the benefit of cheap degrees. Today, now that group of adults is us and we did not go to school cheap (personally I don't fall in to that category out of personal choice, but most of my friends do.)
This rings true for me. The main reason I even went to college was because I bought the story that "if you do well in school and get a college degree, you'll get a good job and be set up for success in life."
Yeah. That didn't quite work out as planned. I enjoyed school and the things I learned from my degree were cool, but I use literally 0% of it on the job now, and it doesn't even help get me interviews very often, because it doesn't have the magic letters "CS" in it. Thirty years ago, a bachelor's degree might have been a ticket to a decent professional job, but those days are long past.
I'm not sure what I would have done as an alternative plan, but I'm sure it would have been a hell of a lot cheaper. Not starting out behind a very expensive 8-ball could have possibly helped me a lot.
I suppose it's the same logic that argues the U.S. Federal government can never become insolvent (as it's the world's reserve currency and can simply print money to pay off it's debts).
Earlier quoted context omitted.
That's a terrible system, IMO. Why should we be rewarding B-Ark people while at the same time punishing people who get degrees in Engineering and Medicine? I can understand the logic for tax-supported universities (not necessarily agree, but understand), but this just seems... intellectually dysgenic.
Because perhaps there's a view that its worth something to society for people to study things that dont necessarily lead to a high salary?
Anyway, that's an argument for taxpayer-supported universities, not for universities paid for by the students who choose to learn skills other people will find useful.