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Slavery is illegal. Letting people enslave themselves however is not. An indentured servant or indentured laborer is an employee (indenturee) within a system of unfree labor who is bound by a signed or forced contract (indenture) to work for a particular employer for a fixed time. The contract often lets the employer sell the labor of an indenturee to a third party. Indenturees usually enter into an indenture for a s…
It is remarkable that you cannot declare bankruptcy from student debt. We have essentially decoupled the price of college from the expected return.
The other side of it is everyone qualifies for a loan. So there's an enormous amount of risk associated with it and the interest rates do not reflect that risk. It's difficult to loan 18-year olds money as they tend to lack income and credit worthiness and it's also unreasonable to expect an 18-year old to really understand the future debt they are setting themselves up for.
This has resulted in costs spiraling out of control, as universities can charge whatever they want with minimal repercussions, and students often end up with the STD known as student loans haunting them for the rest of their lives.
I suspect these guys are not the only debt collectors operating this way, but the whole thing is shameful. Talk about an industry crying out for more stringent regulation.
Is it more shameful than the colleges and universities that push students to taking out these loans (calling them "financial aid") knowing full well what waits them on the other side?
It is remarkable that you cannot declare bankruptcy from student debt. We have essentially decoupled the price of college from the expected return.
If we didn't prevent it, then you'd be stupid to not go to college take out $120k in loans and then declare bankruptcy at 22 prior to taking a job (you'd have no income and no assets). You'd be 29 by the time the bankruptcy fell off your credit report, meaning credit might be tight in those years to buy a car or house, but you'd be debt free - something many people in their 20s and 30s would gladly do if they were gi…
Surely it isn't
If no major banks will give student loans, than it will be smaller, low tier loan sharks at higher rates.
As some states in US, and other countries do have some programs where the state is either the guarantor or a partial payer, that will make things worse for the taxpayers.
Invention of student loans has unleashed the genie from the bottle.
No way back, just as it was with state backed mortgages that did just 2 things: made buying houses for cash patently impossible for an average Joe, made an average Joe having to pay for foreclosures and mortgage interest of another average Joe with his tax money.
It is remarkable that you cannot declare bankruptcy from student debt. We have essentially decoupled the price of college from the expected return.
As to why we require loans to be originated without regard to credit risk: if we took credit risk into account, disadvantaged groups would get student loans at drastically decreased rates. That, in turn, would undermine our bipartisan narrative that the way to overcome all the bad things America did to certain people is not to fix the resulting problems, but for everyone to get a college education.
I suspect these guys are not the only debt collectors operating this way, but the whole thing is shameful. Talk about an industry crying out for more stringent regulation.
It is remarkable that you cannot declare bankruptcy from student debt. We have essentially decoupled the price of college from the expected return.
If we didn't prevent it, then you'd be stupid to not go to college take out $120k in loans and then declare bankruptcy at 22 prior to taking a job (you'd have no income and no assets). You'd be 29 by the time the bankruptcy fell off your credit report, meaning credit might be tight in those years to buy a car or house, but you'd be debt free - something many people in their 20s and 30s would gladly do if they were gi…
I suspect these guys are not the only debt collectors operating this way, but the whole thing is shameful. Talk about an industry crying out for more stringent regulation.
It is remarkable that you cannot declare bankruptcy from student debt. We have essentially decoupled the price of college from the expected return.
If we didn't prevent it, then you'd be stupid to not go to college take out $120k in loans and then declare bankruptcy at 22 prior to taking a job (you'd have no income and no assets). You'd be 29 by the time the bankruptcy fell off your credit report, meaning credit might be tight in those years to buy a car or house, but you'd be debt free - something many people in their 20s and 30s would gladly do if they were gi…
I understand that the moral hazard existed in theory, but in practice it was exceedingly minimal.
It is abhorrent that people like you support a vile and abusive system that prioritizes careless lenders over humanity; and that you do so based on theory, when actual data is available. Go fuck yourself.
It is remarkable that you cannot declare bankruptcy from student debt. We have essentially decoupled the price of college from the expected return.
It's hardly remarkable. Student loans are originated without regard to credit risk, at the same interest rate for all borrowers. Moreover, pretty much every student is eligible to declare bankruptcy soon (and often, long) after they graduate. Requiring loans to be freely originated on one hand, and permitting people to discharge them in bankruptcy on the other, would be completely unworkable. As to why we require loa…