Student Loan Debt Is Now as Big as the U.S. Junk Bond Market

Post by yardie » Tue, Dec 05, 2017, 8:21 PM UTC

toomuchtodo wrote: post #180

mywittyname wrote: post #171

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> Of course taxes are going to go up. Plan accordingly They already did. The GOP tax bill specifically targeted our demographic as a way to finance tax cuts for the wealthy and businesses. The GOP doesn't even deny it. Like it or not, we are the scapegoats for all the problems afflicting the poor. And it's not a stretch to believe the GOP is going to use popular support to extract every dime from us until we are home…

Medicare cuts->Elderly dying off faster->Voter demographic change. Law of unintended consequences? Possibly. I can see the political winds shifting back hard over the next 3 years. Enough Puerto Ricans might have moved to Florida already to turn the state blue. Won't know until next elections.

Post by martin_bech » Tue, Dec 05, 2017, 8:26 PM UTC

dv_dt wrote: post #148

martin_bech wrote: post #131

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We have a system like that. Its called taxes and free education. Everyone is offered free college education, including basic living expenses. In return everyone pays a litle more in taxes. And those who choose college, often earn more, and then pay more in taxes. (Im from Denmark)

And, I would think that running the system that way is actually cheaper and more efficient than the US way where we seem to be moving towards individually accounting for every dollar of education for payback - all while the overall system spirals out of cost controls. It's much simpler to supply gov't budgets direct to public schools with oversight for spending. Vs open loans which little cost accountability. (well a…

Post by mdorazio » Tue, Dec 05, 2017, 8:26 PM UTC

ajross wrote: post #144

mdorazio wrote: post #92

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I think you misunderstood. He/she said "default", not "forgive". As in, the people with the loans walk away from them and take the massive credit hit that comes with that, likely by filing for bankruptcy. The issue is that student loans are uniquely sticky, so a person with student loans today basically can't get out of them. If it were possible, many people would choose to file for bankruptcy to release the loans, t…

Bankruptcy is yet another thing though. And I agree, by the way, the laws as written are unfair and don't help anyone. But bankruptcy isn't the ability to "walk away" from a loan. You literally need to be bankrupt: you can't hold any other assets beyond the statutory minums. Most people suffering with student debt aren't literally destitute (obviously some are), they just have a cash flow problem. Bankruptcy won't he…

Post by isostatic » Tue, Dec 05, 2017, 8:28 PM UTC

jedberg wrote: post #170

ConceptJunkie wrote: post #158

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Income tax covers way more than education.

Exactly, which is why this would be a special additional tax that is just for college graduates and just goes back to the colleges.

Post by goialoq » Tue, Dec 05, 2017, 8:29 PM UTC

jedberg wrote: post #22

There is definitely an education bubble. It's way too easy to get money for college. You hear a lot of stories about the increasing costs of college and crushing debt on graduation, but you don't hear a lot of stories of "I wanted to go to college but couldn't get a loan". Almost everyone gets approved, regardless of their future ability to pay it back. We need a fundamental shift in the way college is paid for. Some…