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Student Debt Giant Navient to Borrowers: You’re on Your Own

bloomberg.com

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Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#71

Post by LyndsySimon »

bradleyjg wrote: post #23
jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

Did you run the numbers? Look at the outcomes for those with just a high school diploma, they are very grim. If the internet has re-written the rules it sure hasn't shown up in the data yet. https://nces.ed.gov/fastfacts/display.asp?id=77

That's not a direct comparison, though - that's all people with a high school diploma versus all people with a college degree.

To draw any conclusion off this, you'd need to compare people who were considering college but do not attend versus those who were considering college but did attend - even if they didn't graduate. Only then do you have a metric that you can use to represent the ROI of attending college.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#72

Post by LyndsySimon »

tracker1 wrote: post #69
jordanmoconnor wrote: post #5

It's mind-blowing how the majority of high school students are lied to each year about the ROI of college. The internet has re-written the rules, and high school educators don't know how to teach that. I would have benefited so much more from a program that taught how to be self-sufficient and the major, major benefits of living debt free. Context: $150k in student loans - lucky enough to have an electrical engineeri…

On the flip side, your chances of ever getting past 200k/year (or equivalent) are much better with a degree... if you accept that you aren't likely to hit the top 5-10% of income earners, then most people are not better off with the college experience.

Your point stands, but FYI - you're way off on your numbers.

$100k would put you in the top 5% of individuals. $200k would put you in the top 3% of households.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#73

Post by LyndsySimon »

theseatoms wrote: post #37
bluGill wrote: post #34

Earlier quoted context omitted.

I believe that school loans should only be allowed for jobs. If you love art and are interested in "under water basket weaving" as a degree that is great, but it won't pay the bills and so you should save your money to pay for it. When you decide to become a medical doctor, it is understood your eventually worth will pay off reasonable loans. My solution: student loans may be discharged in bankruptcy, but your school…

Allow borrowers to default on student loans. Then banks can charge an appropriate interest rate for the credit risk of the borrower, based on pursued major (among other things).

That's so crazy, it might just work...

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#74

Post by LyndsySimon »

wyldfire wrote: post #21
Arubis wrote: post #7

"[Navient pointed out]...more than 40 percent of loan balances it services for the Education Department are enrolled in income-based repayment plans." Over 40% of people with US Government-sponsored student loans--which were presumably taken out in order to advance the career prospects of the borrower--are not being paid sufficiently to repay their loans on the basis of their original issuance, _and this is presented…

I don't think you understood the article. Navient is a debt collector. They were sold loans owned by the US Dept of Ed (or hired by the department of ed maybe?) "more than 40 percent of loan balances it services...." means that out of the loans that the US Dept of Ed decided it can't collect on anymore -- many of those are using the option that would benefit them the most. The article talks about Navient saying one t…

> out of the loans that the US Dept of Ed decided it can't collect on anymore

Nope - Navient isn't a collector, it's a servicing company.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#75

Post by ap3 »

anigbrowl wrote: post #61
noonespecial wrote: post #9

Earlier quoted context omitted.

>I'm getting real damn sick and tired of "what the big print gives, the spidery print takes away" I propose "the bigger the print, the stronger the statement". Therefore, if you make one claim in 24 point and then attempt to rescind or modify it in 8 point, the 24 is legally binding because it was larger and so nullified the smaller. This also means that if you want to place limitations (like 'one per customer' etc)…

I was thinking about this the other day looking at a billboard, talking about how Alive/Bob/Carol wasa winner! at the local casino, with a tiny 'play responsibly' box huddled in the corner. I don't have a strong opinion about gambling but I do care about externalities, and I was amused by the idea that some percentage of billboards (reflective of the incidence of problematic gambling) should feature Alive, Bob and Ca…

For casinos make the odds of winning play a part in the adverts.

99.9% of the casino adds have to show people sad about losing - before we get 1 winning ad

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#76

Post by crestedtazo »

jordanmoconnor wrote: post #28
bradleyjg wrote: post #23

Earlier quoted context omitted.

Did you run the numbers? Look at the outcomes for those with just a high school diploma, they are very grim. If the internet has re-written the rules it sure hasn't shown up in the data yet. https://nces.ed.gov/fastfacts/display.asp?id=77

Sure, those who clung to the system that taught them to be a good little employee. The traditional education system has led many astray without providing successful alternatives.

As opposed to what? Being another entrepreneur, bootstrapping genius raking in million dollar exits? Are those the only viable life paths these days?

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#77

Post by danudey »

ap3 wrote: post #75
anigbrowl wrote: post #61

Earlier quoted context omitted.

I was thinking about this the other day looking at a billboard, talking about how Alive/Bob/Carol wasa winner! at the local casino, with a tiny 'play responsibly' box huddled in the corner. I don't have a strong opinion about gambling but I do care about externalities, and I was amused by the idea that some percentage of billboards (reflective of the incidence of problematic gambling) should feature Alive, Bob and Ca…

For casinos make the odds of winning play a part in the adverts. 99.9% of the casino adds have to show people sad about losing - before we get 1 winning ad

Nah, just require them to disclose the odds for any games of chance.

"Visit Golden Palace photo of a roulette wheel for a 46% chance of breaking even!"

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#78

Post by enraged_camel »

metaphorm wrote: post #38
cbennett wrote: post #31

Earlier quoted context omitted.

> shareholder capitalism. they have zero accountability except to their shareholders. Random thought that just came to mind. Have coalition of debt holders (borrowers ) ever considered buying stock in these companies to influence them in the form of another company that is jointly owned or invested in by thousands or tens of thousands of folks? Eg, mass activism campaign launches request for everyone to invest X% of…

the combined assets of the entire class of student debtors is probably NEGATIVE (they are debtors, remember) whereas the assets of even a single major shareholder (Carl Icahn as a benchmark) are in the billions of dollars and outweigh the rest of it combined. this is one of the side effects of the massive income and wealth inequality American style capitalism causes.

>>the combined assets of the entire class of student debtors is probably NEGATIVE

Doesn't matter. As the saying goes: if you owe the bank $1,000, you have a problem. If you owe the bank $100,000,000, the bank has a problem.

Debtors as a group probably would have a great deal of collective bargaining power.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#79

Post by obstinate »

enraged_camel wrote: post #78
metaphorm wrote: post #38

Earlier quoted context omitted.

the combined assets of the entire class of student debtors is probably NEGATIVE (they are debtors, remember) whereas the assets of even a single major shareholder (Carl Icahn as a benchmark) are in the billions of dollars and outweigh the rest of it combined. this is one of the side effects of the massive income and wealth inequality American style capitalism causes.

>>the combined assets of the entire class of student debtors is probably NEGATIVE Doesn't matter. As the saying goes: if you owe the bank $1,000, you have a problem. If you owe the bank $100,000,000, the bank has a problem. Debtors as a group probably would have a great deal of collective bargaining power.

If debtors could get organized and all stopped paying at once, it seems likely that Navient would run out of money before they got the spigot turned back on.

The consequence of course would be that student loans would cease being made, or be made much less frequently. This would have effects, some good, some bad.

Re: Student Debt Giant Navient to Borrowers: You’re on Your Own

#80

Post by tajen »

enraged_camel wrote: post #78
metaphorm wrote: post #38

Earlier quoted context omitted.

the combined assets of the entire class of student debtors is probably NEGATIVE (they are debtors, remember) whereas the assets of even a single major shareholder (Carl Icahn as a benchmark) are in the billions of dollars and outweigh the rest of it combined. this is one of the side effects of the massive income and wealth inequality American style capitalism causes.

>>the combined assets of the entire class of student debtors is probably NEGATIVE Doesn't matter. As the saying goes: if you owe the bank $1,000, you have a problem. If you owe the bank $100,000,000, the bank has a problem. Debtors as a group probably would have a great deal of collective bargaining power.

US has never had problems with putting 1% of their population in jail. If every student, even the children of billionaires, massively refuse to pay back as a group, the banks would be too happy to strike a deal with the children of billionaires in order to put the 99% others in jail.
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