31–40 of 96 posts
I can see why there are rumblings of loan forgiveness, as it has metastasized into something truly horrible. https://en.wikipedia.org/wiki/Debt_bondage#Definition
You don't need the full college experience, but as the article mentions, getting away from home is a part of it for most.
The fact that people can't ever discharge their loans makes it hard to imagine it "bursting" in the way that the housing market did in 2008. The whole notion of bursting is people collectively realizing their folly and everyone scrambling as quickly as possible to make out with whatever they've got left - like a run on a bank. In this case there is no bank to run on - people will just continue to have their wages/ben…
The way it would burst is through a naive political change that permits e.g. the mass (and simultaneous) discharging of debt.
All debt won't happen, because it will destroy a lot of assets - like pension funds.
But student debt... that could happen if it became clear that much of it was uncollectable because the kids didn't have the money, and weren't ever going to have the money. We're not there, yet, but we do seem to be heading that way.
Alternatively, student debt could be discharged through political means if the general public became galvanized into seeing student debt as a huge problem that is destroying many lives. Statistics won't produce that... but a very well-done movie might.
Summary of what a student loan bubble bursting would be from the article. The government would guarantee less student loans. This would be means some for profit institutions might shut down.
The govt shouldn’t guarantee any student loans. My tax dollars shouldn’t be an ATM for student tuition.
Earlier quoted context omitted.
The govt shouldn’t guarantee any student loans. My tax dollars shouldn’t be an ATM for student tuition.
I am surprised to see this comment "faded." I suppose this means you've rubbed a moderator the wrong way. Administration of this website befuddles me. At any rate, I completely agree: the wealth of the average taxpaying citizen should not be used to pay the blackmail of too-big-too-fail financial engines holding public education for ransom. Blackmailers should be arrested, tried, and sentenced to community service. T…
Just like the housing crisis... when are we going to learn that government backed debt is a terrible thing for our nation? Creditors _should_ turn away bad lendees or cap loan limits, or increase your interest rate based on risk factors. Some exmaples of this might be: * Limiting the amount of money you can be loaned for majors that don't have good job prospects. People should turn to grants for these types of educat…
Why shouldn't it cost less for an English or a philosophy degree than an engineering degree? The job prospects are not only worse but so are your lifetime earnings. Or looking at it another way the English and philosophy majors are subsidizing the cost of an engineering degree.
Just like the housing crisis... when are we going to learn that government backed debt is a terrible thing for our nation? Creditors _should_ turn away bad lendees or cap loan limits, or increase your interest rate based on risk factors. Some exmaples of this might be: * Limiting the amount of money you can be loaned for majors that don't have good job prospects. People should turn to grants for these types of educat…
Same with missing class, they don't reduce someone's lifetime earnings, they just tell you how conscientious they are.
But extroversion is actually one of biggest contributors to lifetime earnings. Maybe if they miss a party we should increase their interest rate too.
Earlier quoted context omitted.
Why shouldn't it cost less for an English or a philosophy degree than an engineering degree? The job prospects are not only worse but so are your lifetime earnings. Or looking at it another way the English and philosophy majors are subsidizing the cost of an engineering degree.
From a cost perspective it doesn't cost that much more to educate an English major than an engineering major.
Earlier quoted context omitted.
The govt shouldn’t guarantee any student loans. My tax dollars shouldn’t be an ATM for student tuition.
well what are tax dollars for then? police? you realize education is a better way to reduce crime. that aside, cant think of a better way to spend tax dollars..
By all means, provide public funding for public schools. That is common sense.
I strongly believe that lower cost vocational education with group housing for 18-23 year olds is part of a solution to this problem. You don't need the full college experience, but as the article mentions, getting away from home is a part of it for most.