Student-Loan Debt Is Crushing Millennials • Hacker News Board

Re: Student-Loan Debt Is Crushing Millennials

#21

Post by johnm1019 » Fri, Nov 02, 2018, 4:28 PM UTC

maverick2007 wrote: post #14

Student loans always did feel kind of predatory to me. We're asking 17 or 18 year olds whose brains haven't fully developed the ability to prioritize long term consequences to take on 10s or 100s of thousands of dollars in debt when in many cases, they don't even know their path through college (major etc). Now don't get me wrong, I don't have some sort of magic plan to fix this (maybe allow them to declare bankruptc…

Then I guess I have a "fully developed adult brain" (whatever that is) and certainly couldn't fully understand all the effects of taking out a $120k loan to take a risk on a degree in a subject I don't know (by definition, otherwise why am I going to school for it?) - let alone long term risks and opportunity cost assessments.

I think it puts anyone looking to go to college and 'move up the ladder' in a very difficult position.

Re: Student-Loan Debt Is Crushing Millennials

#22

Post by Jtsummers » Fri, Nov 02, 2018, 4:28 PM UTC

YinglingLight wrote: post #7

Judgmentality wrote: post #4

Earlier quoted context omitted.

I agree. I feel like most of the problem would be solved by allowing student debt to be erased by declaring bankruptcy. It's absurd that isn't the case.

What's absurd about that? The bank has no salvageable assets to claim. They can't claim 4 years of European Literature from your mind.

You can wipe out medical loans, which also have no assets to claim, with bankruptcy. Or do you think we need to make Repo Men a reality?

Re: Student-Loan Debt Is Crushing Millennials

#23

Post by dasil003 » Fri, Nov 02, 2018, 4:28 PM UTC

YinglingLight wrote: post #7

Judgmentality wrote: post #4

Earlier quoted context omitted.

I agree. I feel like most of the problem would be solved by allowing student debt to be erased by declaring bankruptcy. It's absurd that isn't the case.

What's absurd about that? The bank has no salvageable assets to claim. They can't claim 4 years of European Literature from your mind.

What's absurd is they don't have to take into account the ability of the student to pay back the loan, instead taking on an indentured servant for life. This distorts the market leading to higher tuition for everyone.

Re: Student-Loan Debt Is Crushing Millennials

#24

Post by ant6n » Fri, Nov 02, 2018, 4:29 PM UTC

skh wrote: post #3

Often times when student loans come up people blame exclusively the borrower. We should keep in mind that in a properly functioning lending market both the borrower and lender take on risk. The lender should not left out of the equation on who to blame. Both parties are at fault. But we don’t have a properly function student loan industry. Lenders assume very little risk in this market but they should not be absolved…

The actual problem is high tuition.

Re: Student-Loan Debt Is Crushing Millennials

#25

Post by empath75 » Fri, Nov 02, 2018, 4:29 PM UTC

YinglingLight wrote: post #7

Judgmentality wrote: post #4

Earlier quoted context omitted.

I agree. I feel like most of the problem would be solved by allowing student debt to be erased by declaring bankruptcy. It's absurd that isn't the case.

What's absurd about that? The bank has no salvageable assets to claim. They can't claim 4 years of European Literature from your mind.

They can't claim assets for credit card debt either, and yet you can discharge those in bankruptcy.

Re: Student-Loan Debt Is Crushing Millennials

#26

Post by nicoburns » Fri, Nov 02, 2018, 4:29 PM UTC

esotericn wrote: post #18

The normalisation of lending is a huge issue in general. There's a pervasive idea that being able to actually afford things is abnormal. That everyone should just take a loan out for education. For a car. For a house. For a cellphone. Yes, there are benefits to being able to get things 'earlier' than otherwise would be possible. And if everything goes right, the situation a borrower is in at the end of a loan may be…

Agreed, although student loans are a little different in this regard, as repayment us only due while earning.

Re: Student-Loan Debt Is Crushing Millennials

#27

Post by ant6n » Fri, Nov 02, 2018, 4:29 PM UTC

maverick2007 wrote: post #14

Student loans always did feel kind of predatory to me. We're asking 17 or 18 year olds whose brains haven't fully developed the ability to prioritize long term consequences to take on 10s or 100s of thousands of dollars in debt when in many cases, they don't even know their path through college (major etc). Now don't get me wrong, I don't have some sort of magic plan to fix this (maybe allow them to declare bankruptc…

Solution: lower tuition.

Re: Student-Loan Debt Is Crushing Millennials

#28

Post by empath75 » Fri, Nov 02, 2018, 4:30 PM UTC

aglavine wrote: post #15

As a foreigner I don't get it. Why are students allowed to get a debt that they can't pay. Why they take it?

You're told from the day you start school that if you don't go to college, you're not going to 'make it'. There aren't enough scholarships to go around. So people will pay literally anything. And since they can't discharge the debt in bankruptcy, lenders will throw money at them.

Re: Student-Loan Debt Is Crushing Millennials

#29

Post by theandrewbailey » Fri, Nov 02, 2018, 4:31 PM UTC

YinglingLight wrote: post #7

Judgmentality wrote: post #4

Earlier quoted context omitted.

I agree. I feel like most of the problem would be solved by allowing student debt to be erased by declaring bankruptcy. It's absurd that isn't the case.

What's absurd about that? The bank has no salvageable assets to claim. They can't claim 4 years of European Literature from your mind.

It gives the lender little to no incentive to evaluate the marketability of the degree.

Re: Student-Loan Debt Is Crushing Millennials

#30

Post by MaupitiBlue » Fri, Nov 02, 2018, 4:31 PM UTC

skh wrote: post #3

Often times when student loans come up people blame exclusively the borrower. We should keep in mind that in a properly functioning lending market both the borrower and lender take on risk. The lender should not left out of the equation on who to blame. Both parties are at fault. But we don’t have a properly function student loan industry. Lenders assume very little risk in this market but they should not be absolved…

I don’t “blame” anyone. Millennials made a decision based on their preferences. Now they’ve changed their mind and want me to pick up the tab. No thanks.