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

Post by artursapek » Sat, Mar 18, 2017, 8:24 PM UTC

nhangen wrote: post #25

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.

Post by brianwawok » Sat, Mar 18, 2017, 8:24 PM UTC

WaxProlix wrote: post #37

brianwawok wrote: post #35

Earlier quoted context omitted.

> Sometimes I do wonder why American Universities charge exorbitant tuition fee? Students demand a lot. Good profs. Dorms with AC. Sports teams. Medical care. All that cost a lot. States and federal gov't pays less each year. The difference has to come from somewhere? In any case, its not perfect but I will take US colleges 100x over Japanese Colleges or Chinese Colleges or Mexican Colleges or 98% of the colleges in…

Sports teams are generally a net positive. You and I see the $3.5M salary for a football coach at a public university and think it's absurd, but the football program itself pulls in tons of cash directly and indirectly and is probably more than 'worth it' to the school overall. edit: Looks like this is generally wrong. I'll leave it up but see below comment.

  Only 24 FBS schools generated more revenue than they 
  spent in 2014, according to the NCAA Revenues and 
  Expenses of Division I Intercollegiate Athletics Programs 
  Report. That figure jumped from 20 schools in 2013, but  
  it has remained relatively consistent through the past 
  decade.

  Only two sports were profitable at FBS schools, according 
  to the report. Football programs netted a median profit 
  of slightly more than $3 million and men’s basketball 
  netted a median $340,000. But the profits at most schools 
  quickly vanished after paying for a long list of other 
  intercollegiate teams, all of which lose money. The 
  median loss among of athletic departments was $11.6 million.

Post by pdkl95 » Sat, Mar 18, 2017, 8:26 PM UTC

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.

Post by brianwawok » Sat, Mar 18, 2017, 8:28 PM UTC

Kluny wrote: post #44

brianwawok wrote: post #36

Earlier quoted context omitted.

> The only reason I was able to pay my loans was because the Army paid them for me after I completed my term of service. I tried for years to find employment that could help me escape a life of poverty but could not. Okay, so then I must ask: What did you major in, what was your total debt, and did you research the career prospects of your major BEFORE going to college? Sometimes I think a basic mandatory form that c…

That would be a great idea. Universities won't do this unless they're legally required to. Student ignorance drives their business model.

Post by saboot » Sat, Mar 18, 2017, 8:32 PM UTC

UpDownLeftRight wrote: post #39

BucketSort wrote: post #5

After a few years of unemployment and being treated for bipolar depression my loans were in default. Due to the grace of the system at the time, I was able to bring my loans out of default and I now pay them like everyone else. This type of thing punishes the downtrodden even more. There must be a set of checks and balances that at least attempts to differentiate between deadbeats and broke people that don't need a h…

I don't pay student loans. Do you know why? I don't have them. I went to an inexpensive local school, worked while going to school, and took the public bus to and from it. (I was fortunate enough to be able to live with my parents.) While I don't know your situation, it's hard for me to feel sorry for someone who went to an expensive private school, lived on campus in a "country club" atmosphere, and then expects the…