U.S. Stepping Up Enforcement on Delinquent Student Loans

Post by mikeash » Mon, May 13, 2019, 1:41 AM UTC

SilasX wrote: post #109

mikeash wrote: post #64

Earlier quoted context omitted.

The whole point of repossession is that he bank can sell it to recover at least some of their loss. Without that, it’s just destructive punishment. You’d be making society poorer by restricting this person’s job prospects, with no gain anywhere to offset it.

I don’t know how you get “the whole point” as being that. The credit scoring system likewise doesn’t give the lender anything to resell and merely punishes the borrower, but we recognize it as having positive sum effects for the credit system. A program of revoking degrees would behave the same way. (Even if you have criticisms of the credit score as it exists today, most at least see the merit of “hey, other lenders…

Post by eanzenberg » Mon, May 13, 2019, 1:47 AM UTC

nimbius wrote: post #10

Disclosure: 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…

Post by nordsieck » Mon, May 13, 2019, 1:59 AM UTC

mikeash wrote: post #121

SilasX wrote: post #109

Earlier quoted context omitted.

I don’t know how you get “the whole point” as being that. The credit scoring system likewise doesn’t give the lender anything to resell and merely punishes the borrower, but we recognize it as having positive sum effects for the credit system. A program of revoking degrees would behave the same way. (Even if you have criticisms of the credit score as it exists today, most at least see the merit of “hey, other lenders…

The point of credit scores isn’t to punish the borrower, it’s to allow future lenders to better gauge risk. No value is destroyed when you put a negative mark on someone’s credit report. Revoking degrees would be equivalent to burning down houses in foreclosure. Such destruction of value is obvious madness.

Post by anon1m0us » Mon, May 13, 2019, 2:37 AM UTC

rayiner wrote: post #124

anon1m0us wrote: post #120

Earlier quoted context omitted.

Perhaps I'm an idealist, but I think we can do it right. We had two tracks in high school. the ones who could go to college stayed in class all day. The others who were slated for blue collar jobs went to trade school for the first half of the day, then took essential classes in the afternoon.

> Perhaps I'm an idealist, but I think we can do it right. Our politics would never allow dual tracking. (There are many things that Europe does fine, such as public education, and transit, that Europe does just fine, but which we can’t do as well because of cultural differences.)

Post by Lazare » Mon, May 13, 2019, 3:49 AM UTC

acct1771 wrote: post #126

Lazare wrote: post #103

Earlier quoted context omitted.

The logic runs like this: A secured loan should be easy and cheap to get, because if it goes bad, the lender can reposes the collateral. This is like your house and the truck; you ran up some debt, it didn't work out, you lost them both, but you also lost the debt. An unsecured loan should be harder to get and pretty expensive, because it's riskier. If I run up $20k on my credit card paying for a fancy vacation, then…

> we also don't want to carefully vet applicants Sounds like you don't want to vet them at all, when carefully vetting would be a good answer.