91–100 of 289 posts
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who says assets have to be transferrable. Is life insurance not an asset, even though, obviously, it's not transferrable?
Life insurance can be collected upon. How does one cash in a degree?
Pretty good overview and opinion of the status quo and historical retrospective here: http://online.wsj.com/article/SB1000142412788732416520457902... ? "Politicians subsidize the purchase of a good or service, prices inevitably rise in response to this pumped-up demand, and then the pols blame the provider of the good or service for responding to the incentives the politicians created. Think housing finance and medic…
Adding "$1 trillion in student loans to the federal balance sheet over a decade" is a result of direct lending, ie cutting out the middleman. It is also saving the taxpayer money to the tune of $70B over ten years.
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I'm not arguing since you know way more about this than I do but I'm curious: I've thought of a lot of the problem with the college loan situation as exactly "speculation" since people are gambling that the job they get on the other side is going to let them pay off the giant loans easily. No, people don't buy and sell degrees but isn't there a lot of speculation type behavior going on?
I agree that that is exactly the gamble that a student is taking, that when finished there will be earning ability that will enable them to pay off the loans. Is this a reasonable bet to make? What is the earning potential of someone with a college degree? Isn't it something like a $1M+ increase over one's lifetime?
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Playing devil's advocate, isn't it fair to remove the ability to discharge student loan debt and in term the default risk due to the fact that there is no collateral? Unlike a car loan or a mortgage, a bank can't repossess your education.
A lot of credit card debt has no collateral either, but that can be discharged in bankruptcy; why not student loans? And I suppose credit card companies could try to re-possess the goods purchased with credit cards (obviously not the services), but they don't. (And it makes sense not to; not worth it financially). FWIW, I have no student loan debt so I'm relatively neutral on this.
With student debt its different, if you went to undergrad at MIT then did an MBA at Standford - you are probably looking at north of $100k in debt. If one year after college you defaulted and it was discharged, you would still retain the 'asset' (your education). You could go out the next day and get a nice job at google and continue to earn income from your asset. The bank has no recourse to prevent you from continuing to use the asset they loaned you money for. This is one of the main reasons that you can't discharge student loan debt. No one is going to come take your degree away from you if you don't pay.
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Playing devil's advocate, isn't it fair to remove the ability to discharge student loan debt and in term the default risk due to the fact that there is no collateral? Unlike a car loan or a mortgage, a bank can't repossess your education.
A lot of credit card debt has no collateral either, but that can be discharged in bankruptcy; why not student loans? And I suppose credit card companies could try to re-possess the goods purchased with credit cards (obviously not the services), but they don't. (And it makes sense not to; not worth it financially). FWIW, I have no student loan debt so I'm relatively neutral on this.
It's really too bad that the laws surrounding student loans make them artificially cheap. You can't get rid of college debt through bankruptcy so you're basically saddled for life. Normally the interest you pay is the combination of three things: 1. The (inherent) time value of money 2. Expenses the lender incurs to keep up with the debt 3. The average default risk of those taking the loans Student loans only price i…
A large part of the problem is all the shitty for profit schools. They get students to take out large government backed loans, then are defaulting, since they can't actually get a job. I knew several people I grew up with who went to these schools. They took out huge loans, 10k plus, and they never landed any kind of job with their "certificates" / degrees. [1] Half of all defaults are from these kind of schools. [1]…
In other words, not so much "half of all defaults" but "at 4 times the rate."
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Yes, but a credit card requires credit. Student loans are specifically crafted to be obtainable by people with no income and no credit.
I know the credit cards companies have cut back on this, but. . .credit cards for students don't require credit. . .and are specifically crafted to be obtainable by students with no income or credit. Students with income and/or credit can get better deals with "non-student" credit cards.
Perfect opportunity for hackers. Employers pay big money to find employees. Students pay big money to get educated to get a job. Hackers roll in with apps that allow students to do courses for free on the smartphone/tablet, sell the info of the students to employers, who then hire the students. Everyone wins. Hackers are proclaimed heros.
So... an online college with a placement department.
A free app.
The data points of the app users are sold to employers.
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So... an online college with a placement department.
No. A free app. The data points of the app users are sold to employers.
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Adding "$1 trillion in student loans to the federal balance sheet over a decade" is a result of direct lending, ie cutting out the middleman. It is also saving the taxpayer money to the tune of $70B over ten years.
I think the headline here implies that the said middleman is unsure about the viability of the market, so any savings figure is dependent on low loan default figure.