Students refuse to pay back loans to failed for-profit college
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Re: Students refuse to pay back loans to failed for-profit college
#2> student-debt problem is so severe that it seems to be reducing the formation of new households
Perfect! Housing bubble averted.
In all seriousness, this + an influx of foreign investment into american real estate + a future generational aversion to debt (from experiencing first or secondhand how crippling student loan debt can be) will make for some interesting times in the upcoming decades.
Re: Students refuse to pay back loans to failed for-profit college
#3I always hear people say things like "we don't have debtors prisons in the U.S.". If enough people start doing this, I have a very strong feeling that that will change. As student loans become more of a crisis, we're sure to see more people simply deciding not to pay. What recourse to lenders have if this happens on a large scale?
Re: Students refuse to pay back loans to failed for-profit college
#4“In some cases, you may assert, as a defense against collection of your loan, that the school did something wrong or failed to do something that it should have done.”
Wait till the law students and education students figure out that their schools intentionally overproduced about twice as many grads as the market can bear. And the PHD students and the ... well, basically every program in every school in the country except the ivy league CS programs.
Its either debt jubilee time or admit the "higher ed magically provides a great job" was all a scam. When it comes to deciding between saving face and saving a buck, usually we save a buck, so I almost guarantee the proposed strategy will fail. So culturally we will momentarily see the death of "higher ed at all costs" as a gateway to a great job and all that propaganda.
Re: Students refuse to pay back loans to failed for-profit college
#5> student-debt problem is so severe that it seems to be reducing the formation of new households Perfect! Housing bubble averted. In all seriousness, this + an influx of foreign investment into american real estate + a future generational aversion to debt (from experiencing first or secondhand how crippling student loan debt can be) will make for some interesting times in the upcoming decades.
the aversion to debt isn't occurring very fast considering that outstanding auto load debt is around 886 billion dollars. Credit card debt in 2014 was very similar, with an average of 7k per household.
when it comes to school debt the Federal government would be best served by limiting what it loans based on the education desired, as they set limits on what they pay out for medical services there is little reason to not do the same for education. It might even help reign in the ever increasing costs that colleges charge which in itself a property of easy loans
Re: Students refuse to pay back loans to failed for-profit college
#6I always hear people say things like "we don't have debtors prisons in the U.S.". If enough people start doing this, I have a very strong feeling that that will change. As student loans become more of a crisis, we're sure to see more people simply deciding not to pay. What recourse to lenders have if this happens on a large scale?
They can start garnishing your wages, so unless you never want to hold a job again, creditors will get their money.
Re: Students refuse to pay back loans to failed for-profit college
#7It's a bit disingenuous to claim that you shouldn't pay back any of the debt incurred in earning your degree because the educational program was worthless when you're still seeking a career in the field requiring that degree.
I agree she shouldn't have to pay all of the debt, but surely the degree isn't totally worthless.
Re: Students refuse to pay back loans to failed for-profit college
#8I always hear people say things like "we don't have debtors prisons in the U.S.". If enough people start doing this, I have a very strong feeling that that will change. As student loans become more of a crisis, we're sure to see more people simply deciding not to pay. What recourse to lenders have if this happens on a large scale?
A debtor's prison isn't much use to creditors.
Re: Students refuse to pay back loans to failed for-profit college
#9> student-debt problem is so severe that it seems to be reducing the formation of new households Perfect! Housing bubble averted. In all seriousness, this + an influx of foreign investment into american real estate + a future generational aversion to debt (from experiencing first or secondhand how crippling student loan debt can be) will make for some interesting times in the upcoming decades.
the aversion to debt isn't occurring very fast considering that outstanding auto load debt is around 886 billion dollars. Credit card debt in 2014 was very similar, with an average of 7k per household. when it comes to school debt the Federal government would be best served by limiting what it loans based on the education desired, as they set limits on what they pay out for medical services there is little reason to…
> the aversion to debt isn't occurring very fast considering that outstanding auto load debt is around 886 billion dollars. Credit card debt in 2014 was very similar, with an average of 7k per household.
I can't pull up that data right now, but I remember reading (on here, no less) that most of that auto debt could be attributed to non-millenials.
Credit card debt is an excellent point, though I'm not sure how meaningful per household is in this context (part of the article is pointing out that a decent portion of millenials aren't forming their own households).
Remember that the oldest millenials are still in their early-mid thirties.
> Federal government would be best served
Ah, but there's the rub - a decent amount of this debt is private.
Re: Students refuse to pay back loans to failed for-profit college
#10It's a bit disingenuous to claim that you shouldn't pay back any of the debt incurred in earning your degree because the educational program was worthless when you're still seeking a career in the field requiring that degree. I agree she shouldn't have to pay all of the debt, but surely the degree isn't totally worthless.
She got ripped off by a school, so should now give up her dreams of becoming a nurse.
Great argument.