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

washingtonpost.com

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

#21

Post by nhangen »

HarryHirsch wrote: post #17
nhangen wrote: post #14

Earlier quoted context omitted.

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.

You're talking about corporate debt not personal debt. Show me an example of personal date that is frequently discharged (outside of bankruptcy) and I'll adjust my position.

If you're referring to the fact that it can't be discharged as part of bankruptcy, then I tend to agree with you. It should be.

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

#22

Post by lazyasciiart »

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.

Maybe we can focus on making a rich real estate investor's debt non-dischargeable before tightening the screws on broke student loan holders.

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

#25

Post by nhangen »

artursapek wrote: post #19

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.

I have two teenagers and a 7 year old. The oldest is 15 and doesn't even think about college. I don't nudge him either way, but find it interesting he has not even considered it.

My daughter is 13 and wants to go to college, but only because TV says that's where you go to meet boys and get married.

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

#26

Post by brogrammer2 »

Sometimes I do wonder why American Universities charge exorbitant tuition fee?

Education being the bedrock of an advanced society, isn't but natural the developed economies like US should be able to subsidize education to such an extant that youth of country don't have to worry about paying their tuition fee and focus more on learning and innovation that will take everyone forward.

It is but a reflection on the sad state of affairs that our higher education system has fallen into!!

What do you people think?

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

#27

Post by icebraining »

nhangen wrote: post #21
HarryHirsch wrote: post #17

Earlier quoted context omitted.

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.

You're talking about corporate debt not personal debt. Show me an example of personal date that is frequently discharged (outside of bankruptcy) and I'll adjust my position. If you're referring to the fact that it can't be discharged as part of bankruptcy, then I tend to agree with you. It should be.

If you're referring to the fact that it can't be discharged as part of bankruptcy, then I tend to agree with you.

How else would they be dischargeable? I assume you were talking about bankruptcy.

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

#28

Post by nhangen »

icebraining wrote: post #27
nhangen wrote: post #21

Earlier quoted context omitted.

You're talking about corporate debt not personal debt. Show me an example of personal date that is frequently discharged (outside of bankruptcy) and I'll adjust my position. If you're referring to the fact that it can't be discharged as part of bankruptcy, then I tend to agree with you. It should be.

If you're referring to the fact that it can't be discharged as part of bankruptcy, then I tend to agree with you. How else would they be dischargeable? I assume you were talking about bankruptcy.

As some sort of student loan forgiveness program.

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

#29

Post by zeroer »

distances wrote: post #18
notadoc wrote: post #9

Earlier quoted context omitted.

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.

The lendee can't default, but that doesn't mean the loan gets paid. Some people just don't have money/income/assets to seize, and courts will not garnish poverty wages.

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

#30

Post by HarryHirsch »

nhangen wrote: post #21
HarryHirsch wrote: post #17

Earlier quoted context omitted.

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.

You're talking about corporate debt not personal debt. Show me an example of personal date that is frequently discharged (outside of bankruptcy) and I'll adjust my position. If you're referring to the fact that it can't be discharged as part of bankruptcy, then I tend to agree with you. It should be.

How about medical debt? I understand that US hospitals will cut you a deal based on your ability to pay.
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