Just fucking cancel all the debt already :)
U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
101–110 of 287 posts
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#102Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#103If you add up the total cost of all education institutions in the US, multiply by 4 years, then build a payment structure based on that number, there is simply not enough income left over in the corhort of new grads (first 10 years out of school) to pay the debt service. The problem has nothing to do with liberal art majors, or irresponsible borrowing. The problem is entirely driven by an excessive cost structure of…
> People like the founder of Lambda School understand the problem and will be the solution.
The solution is in plain sight and has been successful in other first-world countries for decades: government funding of higher education.
People who suggest a market-based solution need to explain why none of the first-world countries that have achieved affordable, high quality higher education have used a market solution. The only way it can be achieved is through high levels of government funding.
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#104No creditor would give a loan to someone who doesn't have a chance of paying it back. There are kids going to school for music therapy that are taking $100K in debt. It's time to end government subsidized loans, at least in the current form. The private market does a great job of evaluating risk, the only thing that needs to be done is ensure there is ample competition so it self-regulates.
In principle I agree, but in practice, it seems like private lenders are empirically doing a bad job evaluating risk. Rates for private loans are so high they can only be explained by a high default rate, even among "low-risk" demographics. These rates are very high even for students that we'd view as a low credit risk (e.g. studying CS and not music therapy). I think this shows the private market is doing a poor job…
> In principle I agree, but in practice, it seems like private lenders are empirically doing a bad job evaluating risk. Rates for private loans are so high they can only be explained by a high default rate, even among "low-risk" demographics. These rates are very high even for students that we'd view as a low credit risk (e.g. studying CS and not music therapy). I think this shows the private market is doing a poor job evaluating risk.
Or that they know the risk, but also know people have to borrow so see a chance to profit more from it.
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#105Earlier quoted context omitted.
We will bail them out when enough voters vote for candidates who support zeroing out this debt, and write it off as a policy mistake. We’ve wasted trillions on unproductive military initiatives in the Middle East, this would be relatively minor in comparison. The economic productivity realized by these debtors able to be full economic participants instead of having student loan drag for a lifetime outweighs the moral…
I can see two distinct groups of people who would take issue with this, not that they'll necessarily have their way: - people who were realistic about their finances and did not take on debt to "drag for a lifetime" in the first place. Why should the "rich" and/or reckless kids who lived in overpriced dorms with unnecessary amenities get bailed out when "I was smart and didn't screw myself from the start"? - people w…
As a member of the first group, I agree with you. I really don't like the idea of subsidizing what I consider other people's bad decisions. I was able to make financially reasonable decisions, which often involved sacrifice, and chose to focus on a viable career. I don't want to spend my hard earned money supporting people who didn't do that.
I did not come from money and came from a pretty awful environment so I know this is a possible outcome for most people.
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#106Earlier quoted context omitted.
Why?
See the other comment: Banks will lend less, to people they think will pay it back. Which means schools will have to charge less, particularly for non-profitable majors.
The govnement is the creditor, not the banks like they would be for a traditional loan.
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#107What are the ways this can cause a recession?
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#108This is why keep pushing my daughter towards a trade school. (Once you become immune to eye-rolling life gets easier.) There's a lot of companies with unfilled skilled blue collar jobs. And despite self-driving trucks, semi drivers can make some serious money. And HVAC projected job growth is 14% over the next 10 years. Thank you Global Warming!
Should you really be actively pushing your child in any direction? Would the best course of action not just be to make sure that trade schools are a completely viable choice, should she not be interested in an academic subject?
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#109Earlier quoted context omitted.
Read there ISA, there is a cap, it's at 30k. You only pay if you make a salary greater than 50k a year. It's also six months full time, intensive, and targeted. They feel it's their duty to help you find a job, and have found a job (>50k) for 100% of their first cohort. Find me a college with similar numbers. [ISA FAQ]( https://lambdaschool.com/faq/ )
I believe Lambda School is effective, though something about being alone at home in front of my computer for 12-15 hours/day for 6 months straight, even with remote office hours and chatting with other students, makes me think I'd feel extremely lonely.
It's an 8 hour day with a lunch break. 11am-8pm ET, If you want people, you can always go to the local coffeeshop, library etc.
I agree colleges killer feature for a young person is networking, friendship, and dating. You just have to find alternative places to get it.
Re: U.S. Student Debt in ‘Serious Delinquency’ Tops $166B
#110Earlier quoted context omitted.
There is a rather simple way of stopping the ever growing tuition bubble, one that is employed in the Netherland, but I feel like it won't be popular in the US: Cap the tuition a college is allowed to charge and restrict them from charging additional fees.
Actually, the simplest way to put downward pressure on tuition in the US is to allow the loans to be dischargeable in bankruptcy.
I agree, but I don't think it should be retroactive i.e. only new loans are covered. Banks will start pricing them like personal loans if they're dischargeable in bankruptcy, so it would not be fair that people with more favorable terms obtained earlier are able to take advantage.