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The Absurdity of Student Loan Debt

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Re: The Absurdity of Student Loan Debt

#11

Post by Spooky23 »

ilarum wrote: post #6

In the US, do student loans need collateral? I recently went through the process in India and was quite surprised at the amount of rigour - the bank requested a lot of information including grades since high school, discussed potential earnings and requested that the familial home be hypothecated to the bank.

No, in the US the government guarantees or buys the loans, which are non discharable.

You are free to drop $70k a year on a bachelors/masters in preschool education and make partial payments for the rest of your life!

Re: The Absurdity of Student Loan Debt

#12

Post by wincy »

ilarum wrote: post #6

In the US, do student loans need collateral? I recently went through the process in India and was quite surprised at the amount of rigour - the bank requested a lot of information including grades since high school, discussed potential earnings and requested that the familial home be hypothecated to the bank.

Not at all. You can spend six years get a degree in photography and museum curation at an expensive art school, get 130,000 in student loan debt, then live with your parents while you pay 20% of your income in perpetuity. (A friend of mine’s real life situation)

Re: The Absurdity of Student Loan Debt

#15

Post by occamrazor »

ilarum wrote: post #6

In the US, do student loans need collateral? I recently went through the process in India and was quite surprised at the amount of rigour - the bank requested a lot of information including grades since high school, discussed potential earnings and requested that the familial home be hypothecated to the bank.

In the US student loans are for the major part unsecured and guaranteed by the government.

The idea behind is that a better educated population is more productive and pays, on aggregate, higher taxes. Part of this tax surplus can be used to pay for the debt defaults.

The reality is that the loans in too many cases are too high and will be paid back only in minimal part.

Re: The Absurdity of Student Loan Debt

#16

Post by [deleted] »

kryogen1c wrote: post #5

It troubles me that topics like this usually turn into FUD about the 1% instead of recognizing government interference and subsidation as the problem. The parable of the scorpion and frog [1] is exactly relevant. I wish Americans would stop shouting for more government to fix problems the government created in the first place. [1] https://en.m.wikipedia.org/wiki/The_Scorpion_and_the_Frog?wp...

[deleted]

Re: The Absurdity of Student Loan Debt

#18

Post by freehunter »

saas_co_de wrote: post #9

Just don't pay. It is shocking that people feel compelled to repay crooked loans issued by crooked banks run by people who are just playing a game of who can steal the most.

That doesn’t work when they’re government backed loans. It doesn’t matter if you’re right or wrong, the government is the one with the guns and they’re going to make you pay one way or the other.

Re: The Absurdity of Student Loan Debt

#19

Post by bryondowd »

saas_co_de wrote: post #9

Just don't pay. It is shocking that people feel compelled to repay crooked loans issued by crooked banks run by people who are just playing a game of who can steal the most.

If you don't pay, it destroys your credit rating, which in many areas means you won't be able to rent a place to live from anything but a private party. I believe they could also potentially get an injunction against you and garnish your wages, but I'm not certain about that. Your college also may withhold your transcript, which can impact some employers who require that.

Lots of ways they can make your life just as miserable for not paying.

Re: The Absurdity of Student Loan Debt

#20

Post by jakelazaroff »

kryogen1c wrote: post #5

It troubles me that topics like this usually turn into FUD about the 1% instead of recognizing government interference and subsidation as the problem. The parable of the scorpion and frog [1] is exactly relevant. I wish Americans would stop shouting for more government to fix problems the government created in the first place. [1] https://en.m.wikipedia.org/wiki/The_Scorpion_and_the_Frog?wp...

Neither the article nor the link you share mention the government or the 1%, or even investigate causes or solutions for student loan debt at all.
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