Nearly 5M Americans in Default on Student Loans • Hacker News Board

Re: Nearly 5M Americans in Default on Student Loans

#141

Post by pascalxus » Fri, Dec 15, 2017, 12:43 AM UTC

Like so many things here, I think this is another case of monopoly. Accredited institutions can do whatever they want because there isn't enough competition and students are being taken advantage of (no one is giving them the right financial knowledge about interest rates and years of labor required to pay off the loan).

Let's open up the playing field and allow more cheaper colleges like community colleges. And educate students about choosing those cheaper schools. Employers need to do their part too and stop being so elitist. Not every job requires a Stanford grad.

And let's design the programs so millennials can still work and earn money durring the day and do some kind of part time bachelors program in the evening (that doens't take too much extra time). That way instead of going into debt, they can spend the time breaking even or even building up some savings.

Re: Nearly 5M Americans in Default on Student Loans

#142

Post by hjjiehebebe » Fri, Dec 15, 2017, 1:20 AM UTC

int_19h wrote: post #34

whatshisface wrote: post #3

Earlier quoted context omitted.

Academia is a great example of what happens when you try to create a "market-free" zone: things get abused in unexpected ways while clever rent-seekers embed themselves in incredibly lucrative positions that you never knew you were creating. See: student loans/tuitions, pay-to-read journals (another front page HN topic). The student loan problem is a result of the generalized "prestige economy" that's driving the pro…

This all doesn't explain why so many people pile up massive debt for a degree that doesn't pay well, if at all, in the current (and foreseeable future) job market - and they'd have to be very clueless to not know it in advance.

They are kids

Re: Nearly 5M Americans in Default on Student Loans

#143

Post by amorphid » Fri, Dec 15, 2017, 1:34 AM UTC

verylongname wrote: post #136

amorphid wrote: post #39

Earlier quoted context omitted.

USA checking in. I declared chapter 7 bankruptcy in 2010. Chapter 7 bankruptcy eliminates 100% of your dischargable debt. When the bankruptcy process had completed, I still owed ~200,000 USD, which was 140,000 USD in student loans and 60,000 USD in back taxes that were less than 3 years old, neither of which were dischargable.

In order to owe $60,000 in back taxes, you had to have income. Where did that income go? Were the original loan amounts even higher? Loans of $140,000 sound awfully high for an undergraduate degree. Did you attend a professional school (law school/dental/medical)?

The recession happened, and I attempted to find a job while living on money I had set aside for taxes. That was a flawed plan. About 70% of the loans were from grad school.

Re: Nearly 5M Americans in Default on Student Loans

#144

Post by amorphid » Fri, Dec 15, 2017, 1:35 AM UTC

SeoxyS wrote: post #125

amorphid wrote: post #39

Earlier quoted context omitted.

USA checking in. I declared chapter 7 bankruptcy in 2010. Chapter 7 bankruptcy eliminates 100% of your dischargable debt. When the bankruptcy process had completed, I still owed ~200,000 USD, which was 140,000 USD in student loans and 60,000 USD in back taxes that were less than 3 years old, neither of which were dischargable.

At this point, couldn't you just arbitrage it, and take out loans / mortgages / cash advances / credit cards just to pay off student loans and back taxes, after after which you'd actually declare bankruptcy.

I was already tapped out. There was no more money to be borrowed.

Re: Nearly 5M Americans in Default on Student Loans

#145

Post by amorphid » Fri, Dec 15, 2017, 1:37 AM UTC

mcntsh wrote: post #139

notfromhere wrote: post #134

Earlier quoted context omitted.

That's called fraud and you will go to prison for it.

How is that fraud?

If you borrow money, and it can be demonstrated you never intended to make a good faith effort to pay it back, you're going to have a bad time.

Re: Nearly 5M Americans in Default on Student Loans

#146

Post by int_19h » Fri, Dec 15, 2017, 9:26 AM UTC

hjjiehebebe wrote: post #142

int_19h wrote: post #34

Earlier quoted context omitted.

This all doesn't explain why so many people pile up massive debt for a degree that doesn't pay well, if at all, in the current (and foreseeable future) job market - and they'd have to be very clueless to not know it in advance.

They are kids

When they go to college? They're grown up enough to be able to understand such things. This was certainly the case in my generation (mind you, in a different country) - if you asked college students why they're there, some would be actually interested in the subject, most would be there because they thought it would lead to a well-paid or at least stable job, and a few would be kids of rich parents parked away to get their requisite diploma on whatever.

Consequently, for most, choosing where and what they are going to study would either be a research project in and of itself, or else they'd just pick one of the few specialties known to pay well. And we didn't even pay for college!