I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. I am curious what the ramifications would be if higher education institutions had to (in some form) co-sign the debt being issued. I do get that not all education should be purely for economic reasons, but as an autodidact I feel that "learning for the sake of lear…
> I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. According to Reddit [1] it was to discourage students from immediately declaring bankruptcy upon graduation. I don't see why they couldn't have put a time limit on it though, if that was the reason. Say you can't declare bankruptcy for 7 years after you leave sch…
Under federal rule, colleges must leave grads better off or lose financial aid
91–100 of 565 posts
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#92Gut feeling here is that this is going to result in significantly lower higher ed enrollment, and therefore a less educated populace. Less federal aid means fewer students can afford our insanely expensive educational system. This will pull up the ladder on the younger generations. We do not teach history or ethics, or much in general to our pipeline welders, but they make bank for their hard labor. Meanwhile our wel…
From the article this mainly affects for profit colleges. Also, if history and philosophy are so important maybe we can come up with a more affordable way to teach them to people those things than university.
Jesus Mary and Joseph we are cooked.
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#93I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. I am curious what the ramifications would be if higher education institutions had to (in some form) co-sign the debt being issued. I do get that not all education should be purely for economic reasons, but as an autodidact I feel that "learning for the sake of lear…
I'm all for "learning for the sake of learning", but the federal government doesn't need to subsidize it. Losing federal aid is not the same as not permitting colleges to run the programs at all. Supply/demand is still alive and well.
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#94Earlier quoted context omitted.
Because then the normal thing to do would be to graduate, declare bankruptcy when you have nothing to lose in life because you are just starting out, work for 7 years and you’re in the clear by your late 20s. Everyone would do it.
Maybe not everyone, but certainly lots of unethical people would do it, and there are lots of those. They'd post unbearably smug posts on LinkedIn about it too, calling everyone a sucker who didn't walk away from their $200k in student loans via bankrupcty. The justification for student loans being exempt from bankruptcy is simply that there is no asset to be repossessed. Car loans, mortgages, and HELOCs are differen…
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#95Earlier quoted context omitted.
> I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. According to Reddit [1] it was to discourage students from immediately declaring bankruptcy upon graduation. I don't see why they couldn't have put a time limit on it though, if that was the reason. Say you can't declare bankruptcy for 7 years after you leave sch…
The full reason is that preventing bankruptcy is the only way to keep interest rates low and make the loans widely available. If bankruptcy was allowed then the obvious play would be to take the loan, max out credit cards right before graduation, then declare bankruptcy before you get your first job. Lenders would respond by increasing interest rates dramatically and restricting loans to those who had assets. This wo…
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#96Earlier quoted context omitted.
> I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. According to Reddit [1] it was to discourage students from immediately declaring bankruptcy upon graduation. I don't see why they couldn't have put a time limit on it though, if that was the reason. Say you can't declare bankruptcy for 7 years after you leave sch…
The full reason is that preventing bankruptcy is the only way to keep interest rates low and make the loans widely available. If bankruptcy was allowed then the obvious play would be to take the loan, max out credit cards right before graduation, then declare bankruptcy before you get your first job. Lenders would respond by increasing interest rates dramatically and restricting loans to those who had assets. This wo…
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#97I feel like I have not really heard a compelling reason why student debt should not be dischargeable thru bankruptcy like (afaik) all other forms of debt. I am curious what the ramifications would be if higher education institutions had to (in some form) co-sign the debt being issued. I do get that not all education should be purely for economic reasons, but as an autodidact I feel that "learning for the sake of lear…
What would stop graduates from declaring bankruptcy early in their careers to discharge their debt, before they use their education to build a lifetime of earnings and assets?
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#98Earlier quoted context omitted.
Because its usually tax payer money that is used to fund these loans. If people started declaring bankruptcy tax payers would mandate that federal student loans stop existing as a matter of principle. People hold the value that its good to help students as long as they pay back at least what was given to them (adjusted for inflation).
We could also just decide to provide people higher level of education as a right. And, put some Medicare level pricing in place for colleges and universities to get cost in check. I personally would want to see it with greater student participation/testing. The US education has been watered down to be so easy specifically because failing reduces LTV of a student. They want to just crank out degrees to as many people…
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#99A lot of my peers fell behind financially after graduation, struggled to find work relevant to their interests, and then concluded that they needed a master’s degree to become competitive. But in many cases the real problem was not that they lacked another credential or the right credential. They were aimless, had no clear professional direction, and were using more school to postpone dealing with that. They got into $200-300k CAD of debt because Canadian universities are built to enroll at scale and no real meaningful filter exists to weed out people who have no business going down this path. [2]
Universities encourage this because they want to have it both ways. They market the degree as a path to professional opportunity, admit at enormous scale, and charge enough to sustain constantly growing faculties (with the majority of those costs being borne by the public ledger). Then, when graduates struggle, they retreat to “education was never about earnings” and “you learned lots of useful soft skills that employers want, it's your fault for not marketing them better.”
An arts degree should at least certify some meaningful level of writing ability, judgment, discipline, and intellectual competence. In my experience, the same credential was awarded to excellent students and to people who could barely construct an argument. Some of the dumbest arguments I heard during my degree were in fourth-year seminar courses.
Anecdotally, most of the international students I knew were very capable and competent, which made sense given how much they were paying to be there (some families went into extreme debt by Global South standards to get them there).
Meanwhile, the domestic admissions system felt largely non-selective and seemed designed around educating as many people as possible. That may be a defensible public policy goal, but it also means the credential itself becomes a pretty weak signal and a lot of people were never there for educational enrichment or to pursue Liberal Arts as a meaningful field, but because their parents made them - and they thought they must have a degree to be successful because people without degrees are surely crude barbarians.
Earnings are a crude metric, but “trust us, they became better thinkers” is not accountability. And funneling underemployed graduates into master’s programs and aimless paths are not a solution.
Arts educations should be gated, not necessarily based on funds, either with difficult trials to prove competency or real life experience. For example, theatre programs should admit people with existing experience in background acting and community theatre. North America can adopt 3 year degrees similar to Europe, make the breadth year optional, and actually weed out the incompetent by the first year if we insist on having zero admission standards amidst rising grade inflation. (NC programs produce credible credential signals despite being open admission).
[1] https://www.statcan.gc.ca/o1/en/plus/1896-who-pays-universit...
[2] The sad irony is that pretty much everyone I know (n=5) who took 2+ years between graduating high school and starting post-secondary got jobs or snazzy PhD offers shortly after graduating post-secondary, on top of having to pay nothing for tuition because parental contributions aren't expected for "independent" students for Canadian student aid. I think making more students discover themselves in the real world before letting them do post-secondary could genuinely yield better results in way-finding and independence that's critical for post-grad outcomes.
Re: Under federal rule, colleges must leave grads better off or lose financial aid
#100Earlier quoted context omitted.
> The purpose of higher education is not to get you a job. This is the line universities give, knowing full well that the only reason students pay exorbitant tuitions is because bachelor’s degrees are necessary for most salaried jobs in the US. Schools want to have their cake and eat it too. If education isn’t about the money they should have no problem charging lower tuition rather than paying their presidents milli…
If one thinks doing simple derivatives is a chore, I'd suggest a career other than engineering. I've known many engineers who practiced math avoidance. None of them were worth much as engineers. I know a recruiter who would ask engineering candidates what is 20% of 20,000, without using a calculator or phoning a friend. He was surprised at how many could not, and it was an easy way to filter out the no hires.