The Student Loan Bubble is Starting To Burst • Hacker News Board

Re: The Student Loan Bubble is Starting To Burst

#191

Post by jlgreco » Tue, Sep 10, 2013, 4:41 AM UTC

jussij wrote: post #183

jlgreco wrote: post #59

Earlier quoted context omitted.

I assume a bank cannot reposes my liver either. What happens if I go into debt from medical expenses? Is there an exemption for medical debt as well?

From what I've read about the US health system, I thought you don't get much in the way of medical treatment unless you have medical insurance. In other word the insurance covers the cost. If that is the case, where is the debt?

All I know is that many people go bankrupt from medical expenses. I don't know the specifics of how they get into that sort of situation. Perhaps it happens when hospitals first treat people, then bill them afterwards.

Re: The Student Loan Bubble is Starting To Burst

#192

Post by hudibras » Tue, Sep 10, 2013, 4:50 AM UTC

pessimizer wrote: post #69

I'm going to leave this here: http://my.firedoglake.com/deanbaker/2012/03/11/student-loan-... It's Dean Baker's critique on coverage of this type from the Post. The most important thing to take from it is that the housing bubble popping turned $22 trillion of household wealth into $14 trillion. The sum of all student loans add up to around $1 trillion. Banks getting out of an industry because they don't find it profi…

This is the key paragraph:

The student loan market is now valued at $867 billion, less than 1/25th the size of the housing market at its bubble peak. Furthermore, all of it will not default and the defaults that do occur will be spread over many years.

Also, just wanted to say that Dean Baker is great, that's all.

Re: The Student Loan Bubble is Starting To Burst

#193

Post by jlgreco » Tue, Sep 10, 2013, 5:06 AM UTC

pyre wrote: post #174

muzz wrote: post #135

Earlier quoted context omitted.

Agreed. Article in San Jose Mercury News just yesterday: http://www.mercurynews.com/education/ci_24041125/profit-coll... The good news: "Last year California cut from its tuition aid program more than 130 private colleges with low graduation rates and too many student loan defaults. Some wonder if the federal government will follow the state's lead to hold colleges responsible for their performance. Today, only 50 fo…

> low graduation rates > hold colleges responsible for their performance Sounds like a recipe for lowered standards...

That's why you factor in job placement rates. Degree-mills are already a problem.

Re: The Student Loan Bubble is Starting To Burst

#194

Post by nitrogen » Tue, Sep 10, 2013, 5:22 AM UTC

jobu wrote: post #40

kilroy123 wrote: post #34

Earlier quoted context omitted.

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]…

Always ask if the school is Regionally Accredited in the degree you intend to take: http://en.wikipedia.org/wiki/Regional_accreditation#Regional... If not, the credits are generally non-transferrable and many businesses will simply toss your resume.

The odd school here and there can get away without accreditation if their reputation allows it. For example, at least one of the founders of Pixar came from my former university, which has an unaccredited CS program (at least at the time I attended).

Re: The Student Loan Bubble is Starting To Burst

#195

Post by thomaslangston » Tue, Sep 10, 2013, 5:23 AM UTC

pyre wrote: post #174

muzz wrote: post #135

Earlier quoted context omitted.

Agreed. Article in San Jose Mercury News just yesterday: http://www.mercurynews.com/education/ci_24041125/profit-coll... The good news: "Last year California cut from its tuition aid program more than 130 private colleges with low graduation rates and too many student loan defaults. Some wonder if the federal government will follow the state's lead to hold colleges responsible for their performance. Today, only 50 fo…

> low graduation rates > hold colleges responsible for their performance Sounds like a recipe for lowered standards...

Loan default rates were also mentioned.

Re: The Student Loan Bubble is Starting To Burst

#196

Post by ChrisNorstrom » Tue, Sep 10, 2013, 5:29 AM UTC

goostavos wrote: post #141

kilroy123 wrote: post #34

Earlier quoted context omitted.

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]…

My girlfriend attends a for profit school (because her employer covers it 100%), it's absolutely alarming how stunningly expensive these for profit schools are. As a comparison, the state school that I attend, even with over-priced books, sets me back about $1200/semester, and that's for 3 classes. A single class for her is billed at that same amount. Before books. I don't know how anyone would look at the cost and t…

Full Sail Graduate here. You are correct. Avoid Full Sail. It's designed to pump out students like crazy. I'd say it's one of the most greedy schools. In the end I wish I could take it all back and never go there.

Re: The Student Loan Bubble is Starting To Burst

#197

Post by avty » Tue, Sep 10, 2013, 5:30 AM UTC

msandford wrote: post #16

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…

The students can always leave the country to search for a better life.

Re: The Student Loan Bubble is Starting To Burst

#198

Post by zedai » Tue, Sep 10, 2013, 5:30 AM UTC

This is really BAD. First institutions ask for loads of money to provide education, then this kind of thing happens. Well we are just making this world worse. Human Knowledge belongs to the world. This makes difficult for students who come from backward societies.

Re: The Student Loan Bubble is Starting To Burst

#199

Post by r00fus » Tue, Sep 10, 2013, 5:34 AM UTC

jlgreco wrote: post #81

dnautics wrote: post #54

Earlier quoted context omitted.

>[1] Half of all defaults are from these kind of schools. That means half of all defaults are from the "other" kind of school. And the loans from the "other" kind of school are much, much more than 10k +, and many of those students are "never landing any kind of job", too. Sounds like a LARGER part of the problem is "conventional" higher education.

How many people go to real schools, and how many go to fake 'for profit' schools? And isn't the median student debt something like 25k? Not really "much much more" in my book. Anyone with a real degree should be able to handle that sort of debt. What we should be doing is allowing lenders to discriminate by major and school. Good school with a good degree? Lend. Good school with a shitty degree? Lend with extreme cau…

This is similar to a proposal by the Obama administration to prevent loan-milling by Wall St. owned private schools.

Re: The Student Loan Bubble is Starting To Burst

#200

Post by teeja » Tue, Sep 10, 2013, 5:37 AM UTC

Health, housing, education. What's the next sector for the relentless blood funnel?