U.S. forgives 40k student loans

Post by bombcar » Wed, Apr 20, 2022, 6:25 PM UTC

mrep wrote: post #156

throwawayboise wrote: post #100

Earlier quoted context omitted.

This is the answer. Lenders would then have to do proper qualification on borrowers, would be more limited in their lending, and this would put downward pressure on tuition.

So unsecured personal loans? Those depend on your credit which most students don't have much/any and your debt-to-income which is normally infinite for students because they don't work. You would massively screw over kids whose parents cannot pay/co-sign a normal loan as it would force them to work and study. Also, you normally cannot get very much with such low income and cherry on top, they have awful interest rate…

Post by bombcar » Wed, Apr 20, 2022, 6:26 PM UTC

SamuelAdams wrote: post #213

loeg wrote: post #107

Earlier quoted context omitted.

They'd actually have to underwrite on the basis of the value of a degree -- yeah, no one is going to lend money to the same people who wouldn't be able to repay their loans after graduation. That's good!

This is a slippery slope though. This effectively turns universities into career-training centers. Eventually enrollment in less-profitable subjects, like dance and art, will decrease, forcing colleges to drop it from their programming. Then suddenly we have a society that does not appreciate art or dance or whatever other subjects were dropped. This is the slippery slope - creditors get to decide what others know an…

Post by mrep » Wed, Apr 20, 2022, 6:27 PM UTC

kevinsundar wrote: post #255

mrep wrote: post #156

Earlier quoted context omitted.

So unsecured personal loans? Those depend on your credit which most students don't have much/any and your debt-to-income which is normally infinite for students because they don't work. You would massively screw over kids whose parents cannot pay/co-sign a normal loan as it would force them to work and study. Also, you normally cannot get very much with such low income and cherry on top, they have awful interest rate…

Colleges already have a mechanism for determining chance of success in college, and degrees have data on the average income after graduation. It would be trivial for private lenders to take into account the school, factors in standard college applications, the degree, and expected income to make a loan decision instead of relying on credit, debt-to-income, etc.

Post by tppiotrowski » Wed, Apr 20, 2022, 6:27 PM UTC

blippage wrote: post #166

I'm a UK guy in my 50's. I went to uni (the US term for college) in '83. At the time I was in the minority of the population. I was given a grant of £3000pa and was able to make ends meet. I might have lived in, shall we say, the most salubrious of environments, but I emerged without debt. Same thing when I did my masters and PhD a few years after that. I basically caught the tail end of uni, when it was for the mino…

Post by stetrain » Wed, Apr 20, 2022, 6:33 PM UTC

rootusrootus wrote: post #345

stetrain wrote: post #301

Earlier quoted context omitted.

Why not do both? Forgiving past loans for graduated students does not put future money into the hands of college administrators unless you continue issuing and forgiving future loans. Fixing the grift and providing relief to those who were grifted should be two sides of the same coin.

Sure, do both. But the relief, as it were, needs to come after the fix. And frankly, rather than just give a relatively privileged subset of the population some money, we might as well crank up that printing press again and just got a $10K check to every last citizen, student loans or not. Might as well be equitable about it.