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U.S. Stepping Up Enforcement on Delinquent Student Loans

bloomberg.com

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Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#81

Post by malandrew »

mikeash wrote: post #66
jtbayly wrote: post #54

Earlier quoted context omitted.

Is this meant to be sarcastic? I suppose it would be possible if you enslaved those with PHDs and unpaid debt, forcing them to teach at universities administrated by those enslaved for their debt, built by those enslaved for their debt. Pharaoh had a lot of things for “free,” as did the plantation owners in the US, but the cost of free is pretty much the opposite of free for those who end up doing the paying. And the…

We already do this for K-12 and nobody had to be enslaved.

When someone takes 100% of the fruits of your labor it is slavery. What do you call it when someone takes 45% of the fruits of your labor?

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#82

Post by larrywright »

lgleason wrote: post #2

I don't envy people on the receiving end of this. That said, it sounds like it's part of the trend to begin to put pressure on the universities by making student loans less attractive. If there are consequences for racking up large student loans that you can't pay people may think twice about taking them on. For years Universities have been increasing tuition on well beyond the rate of inflation, often for degrees th…

Correlation isn't causation, but the cost of college tuition rose dramatically once student loans becamse easier to get. We have decades of studies that show that people will spend less money at a store when they have to pay cash vs when they use a credit or debit card. I see no reason why college wouldn't be the same. Who cares how much it costs? I've got plenty of loans and I'm sure I'll make plenty of money so that I can pay them off someday.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#83

Post by downrightmike »

rayiner wrote: post #25
nimbius wrote: post #10

Disclosure: I work as a blue-collar engine mechanic. Ive never been to college. That having been said, im familiar with debt after the 2008 housing collapse. I lost my truck and my trailer home, partly because of a shady home loan and partly because well, my employer went out of business. That having been said it was relatively easy to discharge these debts. the bank wasnt too upset about the home and offered to help…

> Why is it I can ditch close to 90 grand in loans lickety-split but students cant? how is education any different? When you initially took your loans, your lender assessed your credit and made the lending decision accordingly. Any individual loan won’t pan out, it on average the portfolio will, because the lender controls what loans are made. Student loans are completely different. The lender (the federal government…

The assessing is done by the school as they are a trusted third party. And then the school inflates prices to bring in more money for the endowment and administration. The selling line is something like: "Don't want to have a shit life and no options? We didn't think so, so sign this paper and go cram for tests and don't worry about the bill. People with a degree earn more than those without." And then the jobs are shit or gigs or just not existent. Unless you have a good network to use.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#84

Post by TomMckenny »

nimbius wrote: post #10

Disclosure: I work as a blue-collar engine mechanic. Ive never been to college. That having been said, im familiar with debt after the 2008 housing collapse. I lost my truck and my trailer home, partly because of a shady home loan and partly because well, my employer went out of business. That having been said it was relatively easy to discharge these debts. the bank wasnt too upset about the home and offered to help…

We want everyone who can, rich or poor, to be able to go to college. So everyone gets a loan no questions asked.

No private bank would do this so it has to be government. But we want this to cost the government nothing, so the loan is uniquely inescapable.

And we want Universities to charge essentially whatever they want, so the loan required is close to unlimited.

We'd need to change one of those to fix the problem. Forcing private banks to issue unlimited loosing loans, telling universities what they can do or, only alowing the rich into uinversitys are all unacceptable. Which leave one option, the one other developed continues use. Which is hammered with words like "socialist" or the like.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#85

Post by AngryData »

larrywright wrote: post #80
rayiner wrote: post #33

I’m convinced you can’t fix the education problem in the US until you can fix the demand side as well. Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees (total), before finishing up at a four year-college. Very few people take advantage of the opportunity. Why are people clamoring for free college when they’re not using the cheaper option…

Free college is an awful idea, honestly. That's not going to fix the problem, and will most likely make it significanly worse.

Why? It works for high school, I don't see how college is any different.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#86

Post by emmelaich »

nimbius wrote: post #10

Disclosure: I work as a blue-collar engine mechanic. Ive never been to college. That having been said, im familiar with debt after the 2008 housing collapse. I lost my truck and my trailer home, partly because of a shady home loan and partly because well, my employer went out of business. That having been said it was relatively easy to discharge these debts. the bank wasnt too upset about the home and offered to help…

Your other responses are excellent.

But I want to say this is another TANSTAAFL. You worked, had skills, and otherwise "worked" for your loan.

If loans are "free" like student loans, the costs can end up being even higher.

What will happen is that once there's enough examples like your biologist friend, the government will forgive them with a TARP like exercise. That might be OK if the underlying system changed and we stopped loaning out money to people unlikely to hand it back.

And the money ends up bloating the academic bureaucracy anyway. Not enough ends up improving or providing education.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#87

Post by semajian »

larrywright wrote: post #80
rayiner wrote: post #33

I’m convinced you can’t fix the education problem in the US until you can fix the demand side as well. Where I live in Maryland, you can do two years at the local community college (which is excellent) for $8,000 in tuition and fees (total), before finishing up at a four year-college. Very few people take advantage of the opportunity. Why are people clamoring for free college when they’re not using the cheaper option…

Free college is an awful idea, honestly. That's not going to fix the problem, and will most likely make it significanly worse.

I guess the most prominent counterexample is Germany, which has basically free tuition. They also have different kinds of high schools preparing people for universities or trades, not everyone needs to go to university.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#88

Post by shmerl »

malandrew wrote: post #81
mikeash wrote: post #66

Earlier quoted context omitted.

We already do this for K-12 and nobody had to be enslaved.

When someone takes 100% of the fruits of your labor it is slavery. What do you call it when someone takes 45% of the fruits of your labor?

Taxes.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#89

Post by emmelaich »

AngryData wrote: post #85
larrywright wrote: post #80

Earlier quoted context omitted.

Free college is an awful idea, honestly. That's not going to fix the problem, and will most likely make it significanly worse.

Why? It works for high school, I don't see how college is any different.

Pass rate for college level for random person is vastly lower than high school.

Re: U.S. Stepping Up Enforcement on Delinquent Student Loans

#90

Post by mikeash »

malandrew wrote: post #81
mikeash wrote: post #66

Earlier quoted context omitted.

We already do this for K-12 and nobody had to be enslaved.

When someone takes 100% of the fruits of your labor it is slavery. What do you call it when someone takes 45% of the fruits of your labor?

If you’re going for “taxation is slavery” then just say it, I don’t feel like playing games.
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