Earlier quoted context omitted.
>"Along with healthcare, climate change, the debt," There's an interesting parallel with the cost of healthcare. Increases in costs for both seem to outstrip inflation year over year. And there's lots of of people making lots of money in both sectors. And yet nobody in either sector seems to be able to say exactly why the costs are increasing at the untenable rates they are. The only thing Washington ever seems to do…
Hm...housing, healthcare, college, pharma are all heavily regulated and are subsidized by the government in one way or another. All are outpacing inflation by a very significant margin, for dubious gains in utility. Anyone else seeing a trend here?
The Student Debt Problem Is Worse Than We Imagined
181–190 of 374 posts
Re: The Student Debt Problem Is Worse Than We Imagined
#182Can someone say at what point does delinquency turn into default? Also I was under the impression that student loan debt could not be charged off, even in bankruptcy.
Default usually occurs around 120 days after the last payment has been made. Federal student loans typically have mechanisms (deferment, forbearance, income-based repayment plans) that make it nearly impossible to truly default on the loans. Private student loans are similar to unsecured consumer debt. Once the unpaid mark crosses 120 days or so, the loan is effectively collected like any other debt (though debt coll…
Ah ok, so the default referred to in the article is "default" as a status designation and not defaulted in the sense that the lender is taking a loss. I think this is what I wasn't understanding. Thanks.
Re: The Student Debt Problem Is Worse Than We Imagined
#183Earlier quoted context omitted.
I must say, as someone who made quite a few sacrifices to pay off my school debt, I'll be pretty miffed if less responsible people from my same generation get a break on their loans.
Can I try to change your opinion? Thousands of people are filing for bankruptcy every day which – by implication – are getting a break on loans that you would otherwise pay. The issue is where debtors, who cannot presumably discharge their defaulted student loans in bankruptcy, begin to lose their savings, investments, and ability to stave off financial dependency on the government and become financially dependent on…
The fact is that someone that made poor life decisions is at high risk of doing so again, and their credit rating should permanently reflect this. Otherwise, the loan & bankruptcy system rewards people who go into bankruptcy at the cost of other, more responsible people who are trying to get loans at a reasonable interest rate.
Without this, abuse of the bankruptcy system to "wipe away" student loans would be rampant, and we'd just be kicking the can down the road in a new way again.
Re: The Student Debt Problem Is Worse Than We Imagined
#184Earlier quoted context omitted.
That's basic economics of lending. If X% of people default then you have to increase interest rates to cover the people that default. The increased interest rate will dissuade students from taking on degrees with lesser economic prospects. It's like adding back pressure or load shedding to a distributed system. It is better to drop or delay requests than let the entire system collapse under it's own weight.
It's the opposite. If people can default, then the bank has to avoid defaulters, staying away from financing expensive studies in dead end careers. Otherwise the bank needs to get more defaulter, because they are more profitable than people who pay back.
Re: The Student Debt Problem Is Worse Than We Imagined
#185Source: https://www.ed.gov/news/press-releases/us-department-educati...
Re: The Student Debt Problem Is Worse Than We Imagined
#186Earlier quoted context omitted.
I'll be honest, I have no idea! I can't remember the topic of trade schools ever being brought up in class or otherwise. I think you could probably do it, but it would be very unconventional.
So they have an actual class dedicated to teaching you about this, and that class fails to enumerate all of your options? That seems like a sub-optimal situation. Sounds like my sex-ed class in Georgia which never even discussed birth control.
Two thoughts: (1) such courses are often opt-in and don't necessarily have tons of free time for off-topic discussions; and (2) many schools with such courses do in fact have robust CC-tracked options that all-honors students are not exposed to.
1. A class like this was offered by my high school (years and years ago...) I didn't take it. However, from what I remember talking with friends, our school's course was explicitly for people who were planning on going to college. So it'd be kind of weird to discuss alternatives. That would be like mentioning in a Biology course that Physics or English are also legitimate fields of study.
You'd think such a course would be wishy-washy and have plenty of time for discussing alternatives, but actually it was quite a serious thing.. Most of the students who took the course thought they were on-track for ivy league applications and then got a dose of reality in the form of a below-average standardized test score. They had a couple months to learn how to pattern-match and flash-card their way into the 90th percentile starting from the 50th percentile. I distinctly remember more than one person dropping AP Calc so they could focus on the college prep course...
(In other news, grade inflation and subjective grading are harmful because they are sparse & deceptive reward signals!)
2. Community college was very much not looked down upon; in fact, we had a robust partnership with the regional CC system and many students would spend junior and senior years splitting their week between HS and CC.
However, if you were honors/AP/college-tracked, then you wouldn't really know that those students even existed unless you socialized with those students. I only knew about these programs because of my friend group.
At a recent reunion, I talked with some guys who I recognized from my AP courses. They were complaining that our high school didn't offer non-college-tracked options. I mentioned the various programs my friends had made use of and they were shocked and swore up and down that those programs didn't exist when we were in school.
I wonder if either of these two things is true for OP. IME it's fairly rare for an entire high school -- let alone an entire school district -- to not have robust options for CC-tracked students. Maybe in super-affluent areas?
> Sounds like my sex-ed class in Georgia which never even discussed birth control.
Yeah... state law. Same for me. I had a teacher who risked her job to give us good info. If that was the case for anyone else reading this, consider looking up that teacher and sending a gift card or something their way. Doing so is a huge personal and professional risk.
Re: The Student Debt Problem Is Worse Than We Imagined
#187Earlier quoted context omitted.
I actually agree with you on this. Despite getting accepted to many top-tier universities (Berkeley, Yale, Rice), I chose to go to an in-state school with a generous scholarship so I could come out of school with very little loans. I sacrificed going to a really great school like Berkeley (and living in California!) so I would save money and not end up in so much debt. While I fully think that debt is a nondesirable…
Thanks, nice to have a single person agree with me. That said, I also agree that my personal situation (be it through luck or responsible behavior) now makes it possible for me to be generous to others, and I'm certainly happy to pay extra in taxes, to an extent. I guess what bothers me is just this sense of entitlement of people that originated from my same social stratum who now argue "the game was rigged" when I n…
Students have an obligation to make sure they are getting a good education for a fair price, and that they can foot the bill.
If they determine the cost is too high, they should not buy from that school. This will eventually fix the problem.
Re: The Student Debt Problem Is Worse Than We Imagined
#188Earlier quoted context omitted.
So, emotionally you may be angry, but realistically, how would that negatively impact your life?
The money to pay off the student loans will come from somewhere. Somewhere includes me . Should I ask you to buy me a new car if I spend everthing I have on what turns out to be a lemon? Can one investment firm ask another to cover the losses of its bad positions? Surely, if good and bad decisions are smoothed out to nothing then there's no reason left to make good, sometimes hard choices.
Re: The Student Debt Problem Is Worse Than We Imagined
#189Earlier quoted context omitted.
No. You're turning people into serfs for the better part of their adult life for a decision they made as a teenager. That's not justice, that's cruelty.
$22K in debt isn't serfdom, that's the price of a Honda Civic. It takes few grand a year to keep up with interest.
Re: The Student Debt Problem Is Worse Than We Imagined
#190Earlier quoted context omitted.
I can't express how wrong this response is. Term limits are necessary, there should be no such thing as a "career politician". A politician should be required to have actual skills, and not just a nice smile. Experience with politics is meaningless, there should be NO establishment. It is always the new guy who reveals the truth to the people, which is a good thing. Experience only results in being able to lie to the…
This is such a strange sentiment to me. You would never hire an amateur Carpenter to work on your house. You would never hire an amateur DBA to build your company's key data architecture. But you want the people who run the country to be amateurs?