How come no one is talking about the actual costs of schools? Why are they so expensive? Perhaps bloated budgets, systemic mismanagement across the country...?
Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
121–130 of 447 posts
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#122Earlier quoted context omitted.
> Another solution is to let you go to school for free and then pay a percent of all your future earnings back to your college, or at least into a pool that pays for the next generation's college. We could call it income tax :)
Nah, let’s find some flashy Valley name for the concept and disrupt the market.
yes, and make sure to include a blockchain.
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#123There is definitely an education bubble. It's way too easy to get money for college. You hear a lot of stories about the increasing costs of college and crushing debt on graduation, but you don't hear a lot of stories of "I wanted to go to college but couldn't get a loan". Almost everyone gets approved, regardless of their future ability to pay it back. We need a fundamental shift in the way college is paid for. Some…
> Another solution is to let you go to school for free and then pay a percent of all your future earnings back to your college, or at least into a pool that pays for the next generation's college. We could call it income tax :)
Actually, it is already happening: holberton school, make school, lambda school, etc... :)
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#124There is plenty of blame to go around here. However a major cause of this has been the push by the left that college is the only path to success. Trade and vocational schools as well as military service are all great options for young adults who may not know exactly what they want to do with their life right away. Spending 4 years of your life taking on debt, simply because society tells you college is the path to su…
>as well as military service are all great options for young adults Getting shot at for an education doesn't seem that great. Better off just moving to a better country.
OP didn't say to join the military to get an education he said to do it as an alternative to college. It's a good career path that teaches useful skills. Most people in the military aren't employed in combat roles.
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#125Earlier quoted context omitted.
> Don't worry, your salary gives them a way out too. And I'm not just saying that to be snarky, I think it's very likely what will end up happening: you'll end up paying for their poor choices one way or another. If it's not directly via taxes to pay off their student loans, it'll fund their retirement. Social Security benefits, without any other retirement savings, puts you right around poverty level. I would not co…
>The world still needs plenty of professions where the pay sucks and college is required Quite a self-contradictory statement. I mean, if the world was in such a dire need of said professions in such quantities, then their pay wouldn’t suck in the first place.
As if the world was a free market, and compensation was tied to value.
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#126Earlier quoted context omitted.
No offense, but that's ridiculous. There's money owed here. The schools already got it, the banks are owed it. Someone needs to make that right, you can't just "forgive" debt without some party taking a huge hit. Which one? I'm guessing the developed version of your proposal would be for the government to step in and make the payments to the banks. But.. that's ridiculous. If you want to throw around government money…
>No offense, but that's ridiculous. There's money owed here. The schools already got it, the banks are owed it. Someone needs to make that right, you can't just "forgive" debt without some party taking a huge hit. Which one? No offense, but the banks should take on risk if they're charging interest. Right now, they can have their cake and eat it, too, which is stupid - no offense.
> No offense, but the banks should take on risk if they're charging interest. Right now, they can have their cake and eat it, too, which is stupid - no offense.
i'll skip the faux politeness of "no offense" and just point out that this is foolish.
even if payback is literally guaranteed, interest is still required, because money now is worth more than money later, due to opportunity costs. the US federal government, which everyone considers the pinnacle of credit worthiness, still has to pay interest.
further, just because the debt can't be discharged doesn't mean its paid off in a timely fashion. the interest rate has to be further increased to account for folks who just don't make payments for years at a time.
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#127There is definitely an education bubble. It's way too easy to get money for college. You hear a lot of stories about the increasing costs of college and crushing debt on graduation, but you don't hear a lot of stories of "I wanted to go to college but couldn't get a loan". Almost everyone gets approved, regardless of their future ability to pay it back. We need a fundamental shift in the way college is paid for. Some…
I chose to take 6 years, held a job, paid my own tuition/rent/expenses, graduated with no debt. For me the reduced risk (debt) outweighed the opportunity cost (time).
I've always been prideful about money and don't like people paying for my stuff. So I wouldn't ask my parents to pay or co-sign, so I basically couldn't get a loan given those constraints (at the time, late 90s into early 00s).
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#128Earlier quoted context omitted.
The problem I really see is that we've dug ourselves a big hole. The safety net created for the banks were done to ensure that everyone could get a loan. Banks were "worried" that people would default on their student loans and run away with the money, even though this hasn't happened or is really rare. There was an unfortunate side effect that this incentivized banks to give out riskier loans. Couple that with telli…
I'm working with an idea that you can go bankrupt on student loans, but in doing so you lose the degree - including all rights to a job that might use the degree. There are a ton of things I haven't figure out (follow my post history for more detail on what I have)
How would you forbid someone from using their knowledge?
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#129Easy solution. LET the students default. Seriously, if students could default like they can buying a used car there would be lower tuition and better attention to whom you give a loan to.
> ... better attention to whom you give a loan to.
which translates to "fewer people getting loans". i'm fine with that, but a huge chunk of the population and >=51% of politicians thought it was terrible that there were people who were denied loans.
Re: Student Loan Debt Is Now as Big as the U.S. Junk Bond Market
#130Earlier quoted context omitted.
> Some (many?) would like to see a government funded system Depending on how the debt situation falls out, we might already have that. :-\
You're being sardonic, but socialism-by-bailout seems like an interesting experiment. Next, we automatically bail out everyone with medical debt -> universal healthcare!
I detected slight sarcasm, but you may be more right than you know. We'll see in 3 years, or less (please)