Earlier quoted context omitted.
Education has yourself as return.
> Education has yourself as return. That is not something a lender can repossess.
* free market intensifies
U.S. Stepping Up Enforcement on Delinquent Student Loans
31–40 of 161 posts
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#32Earlier quoted context omitted.
Education has yourself as return.
> Education has yourself as return. That is not something a lender can repossess.
Not as they currently do it, no, but I imagine (at least with future loans), it could have the penalty that the university would not issue your transcript or vouch for your degree when the loan became delinquent enough. That would be similar in spirit repossession (except that the bank couldn't sell it).
But of course, they wouldn't get to take back any of that valuable knowledge and human capital you acquired there /semi-s
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#33I’m convinced you can’t fix the education problem in the US until you can fix the demand side as well. Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees (total), before finishing up at a four year-college. Very few people take advantage of the opportunity.
Why are people clamoring for free college when they’re not using the cheaper options that are already available? Say we had free tuition at public colleges. Would we be able to get rid of federal student loans in that case? Or would people just turn their nose up at public colleges, and demand the government pay tuition for private schools? There is something psychologically messed up on the demand side.
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#34I’m convinced you can’t fix the education problem in the US until you can fix the demand side as well. Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees (total), before finishing up at a four year-college. Very few people take advantage of the opportunity. Why are people clamoring for free college when they’re not using the cheaper option…
Because most people who study are looking to use their qualification to further their careers, and hiring tends to be very reputation based. It's that demand that would need to change.
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#35Earlier quoted context omitted.
> Education has yourself as return. That is not something a lender can repossess.
Not as they currently do it, no, but I imagine (at least with future loans), it could have the penalty that the university would not issue your transcript or vouch for your degree when the loan became delinquent enough. That would be similar in spirit repossession (except that the bank couldn't sell it). But of course, they wouldn't get to take back any of that valuable knowledge and human capital you acquired there…
Schools already do that with debts, but most student loans for accredited schools aren't issued by the school, who has been fully paid by the lender.
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#36Student loans need a TILA box: you're taking $100,000 loan for a $30k/year job. It'll take you 20 years to repay, do you wish to sign?
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#37Disclosure: I work as a blue-collar engine mechanic. Ive never been to college. That having been said, im familiar with debt after the 2008 housing collapse. I lost my truck and my trailer home, partly because of a shady home loan and partly because well, my employer went out of business. That having been said it was relatively easy to discharge these debts. the bank wasnt too upset about the home and offered to help…
Because students generally are poor and so don't have much to lose by declaring bankruptcy. They shrug off massive debts are left with an (ostensibly) valuable degree. Lenders are unable to secure the loan against the borrower's assets, as would generally be the case for a home, auto, or business loan. It's possible that if student loans were dischargeable in bankruptcy that, absent a government guarantee, the lender…
In the UK, student loans are not dischargeable via bankruptcy. But repayment is income based (9% of income), and is only due at all for people who are earning above a certain income (currently ~£21k). This seems like a decent way of dealing with this issue.
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#38Disclosure: I work as a blue-collar engine mechanic. Ive never been to college. That having been said, im familiar with debt after the 2008 housing collapse. I lost my truck and my trailer home, partly because of a shady home loan and partly because well, my employer went out of business. That having been said it was relatively easy to discharge these debts. the bank wasnt too upset about the home and offered to help…
Because your loan didn't come from the taxpayers.
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#39I’m convinced you can’t fix the education problem in the US until you can fix the demand side as well. Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees (total), before finishing up at a four year-college. Very few people take advantage of the opportunity. Why are people clamoring for free college when they’re not using the cheaper option…
I also do not understand this. For example, Arizona community colleges (2 years) are $2,400 while Arizona state universities are $10k.
People are deciding to spend more money elsewhere. They have been convinced that to have a successful career and life they must be in a certain program at a specific university. And for those that wish to be academics or working as a part of the 1% at the cutting edge of their field - sure, it makes a lot of sense.
Re: U.S. Stepping Up Enforcement on Delinquent Student Loans
#40I’m convinced you can’t fix the education problem in the US until you can fix the demand side as well. Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees (total), before finishing up at a four year-college. Very few people take advantage of the opportunity. Why are people clamoring for free college when they’re not using the cheaper option…
> Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees, before finishing up at a four year-college.
This is true for the majority of students, but not generally true for the top ~1-10% of students who often need all 4 years to compete for slots at top law schools, med schools, phd programs, and employers. And getting into the top 4-5 of any of those things (except maybe phd programs, outside of a few fields like CS) will pay itself back in spades.
I'd be curious to see a study that figures out who thinks they are in that 1%-10% vs. who actually is. I.e., are people just being idiots, or are they over-estimating the trajectory of their early career?
Also, even for the other 90%, the same is true for lots of stuff. Including housing and vehicles. People aren't rational.