White House rolls back protections for people in default on student loans • Hacker News Board

Re: White House rolls back protections for people in default on student loans

#11

Post by felipelemos » Sat, Mar 18, 2017, 7:39 PM UTC

yummyfajitas wrote: post #3

This is probably a good idea. It's ridiculous that we coddle people who wastefully took out loans with the goal of improving human capital, and then failed to take advantage of them. Previously student loans were a socialized losses, privatized gains situation. This gives borrowers some skin in the game and will hopefully give them more reason to carefully evaluate whether college is really a good idea for them.

College should be a good idea for everyone. Sometimes I think the Renaissance never happened.

Re: White House rolls back protections for people in default on student loans

#12

Post by dang » Sat, Mar 18, 2017, 7:39 PM UTC

oniMaker wrote: post #7

How far HN has fallen when an intelligent comment like this is downvoted. Yes, I expect mine will be too. I no longer care about the opinions of this community.

You've posted like this repeatedly but all it does is make the site even worse, so please don't.

We detached this comment from https://news.ycombinator.com/item?id=13903065 and marked it off-topic.

Re: White House rolls back protections for people in default on student loans

#13

Post by andr » Sat, Mar 18, 2017, 7:41 PM UTC

yummyfajitas wrote: post #3

This is probably a good idea. It's ridiculous that we coddle people who wastefully took out loans with the goal of improving human capital, and then failed to take advantage of them. Previously student loans were a socialized losses, privatized gains situation. This gives borrowers some skin in the game and will hopefully give them more reason to carefully evaluate whether college is really a good idea for them.

A professional VC will be wrong about some 80% of the startups they fund. Yet you want to punish a teenager for not correctly evaluating the chances of receiving a well-paying job 4+ years into the future?

Re: White House rolls back protections for people in default on student loans

#14

Post by nhangen » Sat, Mar 18, 2017, 7:41 PM UTC

imsofuture wrote: post #6

yummyfajitas wrote: post #3

This is probably a good idea. It's ridiculous that we coddle people who wastefully took out loans with the goal of improving human capital, and then failed to take advantage of them. Previously student loans were a socialized losses, privatized gains situation. This gives borrowers some skin in the game and will hopefully give them more reason to carefully evaluate whether college is really a good idea for them.

What? Borrowers already have skin in the game. Lenders have none . Make student loans dischargeable and suddenly a lot more people are thinking about the actual utility of college and it's costs.

I agree with the downvote and the fact that borrowers have skin in the game, but not that lenders have none. Debt should not be dischargeable, else it's not debt at all.

Re: White House rolls back protections for people in default on student loans

#15

Post by HarryHirsch » Sat, Mar 18, 2017, 7:42 PM UTC

imsofuture wrote: post #6

yummyfajitas wrote: post #3

This is probably a good idea. It's ridiculous that we coddle people who wastefully took out loans with the goal of improving human capital, and then failed to take advantage of them. Previously student loans were a socialized losses, privatized gains situation. This gives borrowers some skin in the game and will hopefully give them more reason to carefully evaluate whether college is really a good idea for them.

What? Borrowers already have skin in the game. Lenders have none . Make student loans dischargeable and suddenly a lot more people are thinking about the actual utility of college and it's costs.

a lot more people are thinking about the actual utility of college

Yeah. It's time that lenders began doing diligence again on their borrowers. Even if the prospective borrower didn't know that that Kaplan degree wasn't such a great idea the loan officer at the bank would know and deny the loan.

Re: White House rolls back protections for people in default on student loans

#16

Post by [deleted] » Sat, Mar 18, 2017, 7:45 PM UTC

nhangen wrote: post #14

imsofuture wrote: post #6

Earlier quoted context omitted.

What? Borrowers already have skin in the game. Lenders have none . Make student loans dischargeable and suddenly a lot more people are thinking about the actual utility of college and it's costs.

I agree with the downvote and the fact that borrowers have skin in the game, but not that lenders have none. Debt should not be dischargeable, else it's not debt at all.

[deleted]

Re: White House rolls back protections for people in default on student loans

#17

Post by HarryHirsch » Sat, Mar 18, 2017, 7:45 PM UTC

nhangen wrote: post #14

imsofuture wrote: post #6

Earlier quoted context omitted.

What? Borrowers already have skin in the game. Lenders have none . Make student loans dischargeable and suddenly a lot more people are thinking about the actual utility of college and it's costs.

I agree with the downvote and the fact that borrowers have skin in the game, but not that lenders have none. Debt should not be dischargeable, else it's not debt at all.

Of course debt can be written off. Out there in the real world contracts are renegotiated all the time. More of that would be advantageous in the face of information asymmetry, the party with better insight would be less tempted to exploit their position.

Re: White House rolls back protections for people in default on student loans

#18

Post by distances » Sat, Mar 18, 2017, 7:45 PM UTC

notadoc wrote: post #9

aresant wrote: post #4

The actual protection being rolled back: "That [protection] forbid the agencies from charging fees for up to 16 percent of the principal and accrued interest owed on the loans, if the borrower entered the government’s loan rehabilitation program within 60 days of default."

16% interest on student loans is basically usury

For loans you can't default on it should be the market rate plus a tiny margin. So maybe 2% or so nowadays.

Re: White House rolls back protections for people in default on student loans

#19

Post by artursapek » Sat, Mar 18, 2017, 7:45 PM UTC

I keep seeing people say that the student loan crisis will be the next "bubble pop". It seems like colleges and lenders both got greedy and created a mass of debt to them that will never be paid off. That, and I imagine the current generation will send their own kids to college at a much lower rate than their parents did. The "college bubble" is going to pop.

Re: White House rolls back protections for people in default on student loans

#20

Post by EpicEng » Sat, Mar 18, 2017, 7:47 PM UTC

yummyfajitas wrote: post #3

This is probably a good idea. It's ridiculous that we coddle people who wastefully took out loans with the goal of improving human capital, and then failed to take advantage of them. Previously student loans were a socialized losses, privatized gains situation. This gives borrowers some skin in the game and will hopefully give them more reason to carefully evaluate whether college is really a good idea for them.

Except we've created a system in which you're told that you have to go to college your entire life. You can't be a damn hotel manager without a college degree these days. The price of college has been on the rise for decades and the only one assuming risk here is the borrower.