31–40 of 72 posts
How do we incentive schools/lenders to fund people who want to study art and literature? Or should we?
Only reason (as a college student) don’t like ISAs is because they take up to something as ridiculous as 10 million over a 10 year period (if you do happen to make that much). I think ISAs may find a place for a greater majority of America though.
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Clearly default and a lifetime of ruined credit is the better option.
Literally nothing can result in a lifetime of ruined credit other than a lifetime of not paying your bills.
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I don't want to make it about politics or a politician, but you can search for their campaign platform proposal for additional details. As far as I know there is only one candidate running on this platform of student loan forgiveness, so it should come up quickly in a search.
It's great to have a presidential candidate that is running on this platform (and I think I know which one you're talking about), but I'm more interested in whether the broad coalition in congress exists, or whether it's being formed. There are a few members of congress I can think of, but not in remotely the size necessary to pull this off.
Seeing as no "mainstream" political party candidate is running on this platform, I think the answer is no. Of course, I would probably say the same of any campaign issue any mainstream candidate is running on due current political climate of our 2 party system.
Whats interesting is if this candidate won the election, perhaps the 2 parties would have no choice but to concede the issue, if for nothing else to realign themselves with their own constituents and win back their votes. Then again maybe we can extend the market saying "the market can remain irrational longer than you can remain solvent" to politics "political parties can remain irrational longer than you can vote."
The currently proposed legal framework for ISA's[0] seems like it would make ISA's dischargeable in bankruptcy, which would likely cause all sorts of issues with people signing up for them, using them to pay for tuition, and then immediately taking on as much delinquent debt to declare bankruptcy. That seems like a very perverse incentive for schools to deal with, since degree's are permanent but bankruptcy only stay…
Clearly default and a lifetime of ruined credit is the better option.
It used to be society wanted people to have an education and that people with degrees would get higher paying jobs which resulted in a net benefit to society through higher taxes. Now education is just looked at as a way to in debt young people for the rest of their lives. Because 1M people default on their student loans every year and the bubble is on the verge of popping, the parasites are looking to own 10% of eve…
"The problem isn't that an API doesn't exist to automatically debit 10% from the people you own, the problem is an education doesn't get you a job anymore, much less a high paying job." In classical education if you don't get a high paying job it's your problem not the university's because they've already been paid. The whole idea behind this change is to shift some of that risk of un/underemployment to the universit…
I don't think that "classical education", in classical education students were able to get part time jobs and pay their own way through school...there we no such things as student loans.
This concept of having to sell off parts of your future productivity at the ripe age of 17-18 is only being conceived because the federal government student loan guarantees and runaway artificial tuition costs supported have already imploded.
Nevertheless, these programs are not paid for/proposed by the universities themselves, but by investors...no matter what the college/university gets paid upfront, and they have no skin in the game.
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Literally nothing can result in a lifetime of ruined credit other than a lifetime of not paying your bills.
Except student loans in the USA. They can't be discharged and the debt never goes away. Unpaid student loans will haunt you forever.
I find it interesting the recent rapid rise of ISAs. I remember back in 2013/14, hearing Upstart pitch to my college for their ISA program. From what I recall, their pitch fell mostly on deaf ears. You can still see their ISA agreement online funnily enough: https://www.upstart.com/funding_terms But they discontinued it in 2014: https://slate.com/business/2014/05/upstart-pulls-income-shar... It's not clear to me why…
Regardless, it's great to see Modern Treasury build a solution to make ISAs simpler to implement.
Earlier quoted context omitted.
Literally nothing can result in a lifetime of ruined credit other than a lifetime of not paying your bills.
Except student loans in the USA. They can't be discharged and the debt never goes away. Unpaid student loans will haunt you forever.
The biggest downside to the rise of ISAs is the decline of the humanities. There are some majors where the cost of educating the student is simply more than the school would earn in a lifetime of work, but they still have value to society. We would need some way to account for that in a world where ISAs fund all education. How do we incentive schools/lenders to fund people who want to study art and literature? Or sho…
Quality educational materials are certainly not more scarce today than they were 50 years ago, or somehow astronomically more expensive today.
Quality educators are not astronomically expensive and costing students more. In fact, educators are being chased from the classroom because we treat professors and teachers as a cost center and have systematically eliminated long-term confidence in career stability by replacing career professors with graduate students and adjuncts.