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Nearly 5M Americans in Default on Student Loans

wsj.com

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Re: Nearly 5M Americans in Default on Student Loans

#71

Post by defen »

hackits wrote: post #25
ggm wrote: post #20

Earlier quoted context omitted.

good point. some debts follow you around for life. And after: my dad always said tax was a gamble, and he decided to ignore the final-demand letters which we found in his office after he died. In one sense, he "won" the bet. In another, viewing him as the tuple {himself, his estate} he didn't...

Here in Australia if you have outstanding debt that is owed to creditors it is paid first before any-one on the persons will would see the money. So in essence most outstanding debt can be collected on a person death.

The idea is to make your debt exceed your assets. Can't collect a million from an estate that has zero.

Re: Nearly 5M Americans in Default on Student Loans

#72

Post by stapleten »

Camillo wrote: post #31

There is a simple and equitable solution, which is to transfer the debt to the universities where they studied.

I genuinely don't know why I haven't considered this perspective before seeing as how many colleges treat students as just bodies to stuff their money bags with. Oh, come to our college, take out $60000 in loans for a degree that will never pay that off, but we get to pocket it anyways because we have no decency? Sure thing! And don't forget to donate as an alumnus! I'm not exactly in this situation, but have seen it enough with people who had no business being at certain schools for certain degrees that I can't help but think universities should be held responsible for all this to some extent.

Re: Nearly 5M Americans in Default on Student Loans

#73

Post by mrhappyunhappy »

japhyr wrote: post #60

I'm a high school math teacher. As part of their high school math education, I encourage all of my students to do one of their projects on analyzing loans. I ask them to pick an item they might take a loan out for, such as a car, a boat (we live in a small fishing town in Alaska), a house, or a student loan. They pick a realistic loan amount, APR, and term length. Then they run the numbers on the loan. I demonstrate…

Care to share your instructions? I’m an adult and I just use the web calculators haha.

Re: Nearly 5M Americans in Default on Student Loans

#74

Post by wildmusings »

vkou wrote: post #67
akkat wrote: post #45

Earlier quoted context omitted.

What's the reason for that. I know administrative staff like that that are getting paid, but what would the current one decide to hire more staff? Unless there was some benefit the staff would prefer to keep the money for themselves rather than hire more people.

Americans colleges expect you to fully insert yourself into college life, and for you to fully insert them into your life. It's like having a parent, except you have to pay them. They expect everyone to live on campus - so they have to play landlord, mayor, community organizer and mediator, mom and dad, chef and waiter, stadium and opera house, convenience store and urgent care clinic... Now, which of these do you th…

They also have a monopoly on providing those services to students, so no incentive to keep costs down.

Re: Nearly 5M Americans in Default on Student Loans

#75

Post by barsonme »

dmh2000 wrote: post #65
ikeyany wrote: post #62

This did not happen by chance. The answer isn't hard to arrive at--simply ask why college is so expensive compared to the 1990s, and why states cannot afford to offset these costs anymore. America is selling out its future by convincing young people that they should go into debt to pay for "the college experience". But why does "the college experience" need to include superfluous staff and wasteful resources? Follow…

and the constant drumbeat that you must attend a $60k/year private school or your life is ruined. instead of a state college or better yet a 2 year community college + 2 year state. very cheap

I attended a state-run community/technical college. The cost was something like $6k/year, and the only company that's cared was _one_ Google recruiter who ghosted me when she learned I didn't have a 4-year degree.

Re: Nearly 5M Americans in Default on Student Loans

#76

Post by gicadin »

AlexCoventry wrote: post #28
dogruck wrote: post #8

Let’s simply tax the new BTC zillionaires, and pay down the student loan debts.

We could just forgive the debts. We don't need a compensating tax when inflation is this low.

This would be a slap in the face of some people who went to school and worked odd jobs to pay for tuition.

Re: Nearly 5M Americans in Default on Student Loans

#77

Post by basicplus2 »

defen wrote: post #71
hackits wrote: post #25

Earlier quoted context omitted.

Here in Australia if you have outstanding debt that is owed to creditors it is paid first before any-one on the persons will would see the money. So in essence most outstanding debt can be collected on a person death.

The idea is to make your debt exceed your assets. Can't collect a million from an estate that has zero.

The ideal finish is..

On death all your debts should be paid in full with the exception that the cheque for the funeral should bounce..

Re: Nearly 5M Americans in Default on Student Loans

#78

Post by ianai »

nordsieck wrote: post #10
ianai wrote: post #2

In the US people can’t clear student loans in bankruptcy. It’s a shame, I think, given the constant upward tick in tuition and lack of resulting careers. They can even go after the students parents.

> In the US people can’t clear student loans in bankruptcy. It’s a shame... Maybe you could explain this to me, because I really don't understand. Why do you think that it's a shame that people can't just discharge substantial, otherwise unsecured government loans? To me, the real shame is high school employees pushing college on marginal students. One of the few things worse than spending too much money on a not-par…

If it’s a market then the usual market forces need a way to work. Ie. If a college can’t reliably create employed workers the colleges need to feel that loss.

Re: Nearly 5M Americans in Default on Student Loans

#79

Post by basicplus2 »

jacquesm wrote: post #50
thisisit wrote: post #47

It is confusing for me how bankruptcies work. What happens if a corporate declares bankruptcy? Do they only pay less while keeping everything they invested/bought using the loan money, for example - buildings, equipment, stores etc? How does this compare to student loans?

Assuming the bankruptcy isn't called off: The bankruptcy is handled by a liquidator or trustee in bankruptcy. That person / entity will attempt to liquidate the assets and will then pay a portion or all of the debts in order of preference. If there is a remainder (unlikely, but it could be) it will be returned to the shareholders. Depending on the country some creditors will receive automatic preference (such as the…

It doesn't really matter for corporations, as a company can be burnt and any debts left will never be paid, and a new company can be created with no debts.

This is what structuring related entities is all about.

The one that owes all the money (particularly the one paying and owing to employees) had nothing of real value in it.

Re: Nearly 5M Americans in Default on Student Loans

#80

Post by bogomipz »

DINKDINK wrote: post #17
ggm wrote: post #7

Although by inclination what I want to do is rant about the iniquity of this kind of robo-debt in education, instead what I am thinking right now, is this: how does this compare overall to the rate of default in debt for other purposes? how does it compare to car loan debt? mortgage debt? I ask, because debt is the same, except in as much as student debt is in principle seeking a path to be able to repay it. The asse…

>because debt is the same No, not all debts are the same: Debts That Cannot Be Discharged in Bankruptcy https://www.thebankruptcysite.org/nondischargeable-debts

Indeed and there even states in the US that are refusing to renew professional licenses for people who default on that debt. See:

https://www.nytimes.com/2017/11/18/business/student-loans-li...

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