Student Loans Getting Close to Implosion!

[cubsfan]

Good article about American higher education -and how the system morphed to much higher costs over time:

 

https://amgreatness.com/2019/09/01/from-icon-to-just-a-con/

 

The "Prescription" is quite interesting, although the chances of reform the author puts at zero. Reason? too many imbedded interests

 

[Guest oakwood42]

What I think is retarded, is that none of this is forced, and much of this is because of selfishness and motives not really centered around education. Community college is available to everyone, and costs very little. If your goal is an education, why not do that? Its inexcusable to excuse student loans for people who chose to go to $30K+ per year universities, took room and board, and lets face it, basically were there for the "experience" and social aspects...

 

+1 what about those of us who attended community college first, received an associates, moved on to bachelors at basic state university and then paid off debt off? Do we get reimbursed? Do we get some special type of compensation? LOL 

[LC]

Should we not discourage predatory lending simply because some people are financially savvy enough to avoid it?

 

How selfish can you be? It’s like someone with HIV saying “don’t bother looking for a cure, it wouldn’t be fair if you found one anyways, since I’ve been taking HIV medication for 30 years!”

[Castanza]

Should we not discourage predatory lending simply because some people are financially savvy enough to avoid it?

 

How selfish can you be? It’s like someone with HIV saying “don’t bother looking for a cure, it wouldn’t be fair if you found one anyways, since I’ve been taking HIV medication for 30 years!”

 

When does personal responsibility come into play? I'm not disagreeing with your point, but I'm also not agreeing with it. My issue with much of the Democratic policies is they want to remove all personal responsibility, accountability and decision making from the process. We shouldn't have a nanny state, yet I agree there probably are some lending practices which are harmful (but shouldn't necessarily be illegal). On the radio the other day some workplace was offering to pay off student debt for signed employment contracts of a specific length of time. I'd imagine there are some shady practices in the fine print there.

 

Is it not just as shady/predatory to make some "taxpayer" foot the bill for others poor decisions? Does that not also fall under predatory/shady lending practices? I didn't force you to take out a loan and I'm also not volunteering my money to pay for your loan. All you're left with is force which is simply predation on a faceless person aka the tax payer.

 

 

[SharperDingaan]

On 9/3/2019 at 1:38 PM, LC said:

Should we not discourage predatory lending simply because some people are financially savvy enough to avoid it?

 

How selfish can you be? It’s like someone with HIV saying “don’t bother looking for a cure, it wouldn’t be fair if you found one anyways, since I’ve been taking HIV medication for 30 years!”

 

Discouraging predatory lending is like trying to banish clap. We might suppress it for a while, but it is not going away - and over the long term, it adapts to whatever drug is being used. Ultimately it is how much is tolerable.

 

Assume the views on this thread are representative of the population. Simply writing off the debt, or discharging it through a bankruptcy, is clearly not a socially or politically practical approach. There's little objection to a write-off; but it has to be earned in some way. Society paid for it, society should get something for it, and there is a lot of societal need. Hard to argue against.

 

The US has been trying to reconcile civil rights ever since the 60's, and is still trying 60 years later.

Students loans are not a lot different. Ultimately, change is limited to the pace at which the oldest generation dies out. Write-offs will eventually occur, but it is going to be a very long 'negotiation'.

 

SD

Edited July 29, 2023 by SharperDingaan

[blakehampton]

2023 now and thought I should post since it still seems to be an overwhelming issue. Due to a recent Supreme Court ruling, Biden's relief plan has fallen through. This is after a three-year payment pause that gave student loan borrowers the opportunity to borrow even more on autos, credit cards, mortgages, etc.

 

Interest on student loans will resume on September 1st 2023 and payments will be due starting in October.

 

Some stats

• 43 million borrowers (about 1 in 5 US adults)
• Average loan per borrower of nearly $30,000
• Approximately 1.75 trillion in total student loan debt

 

I've been thinking about it a lot and find it quite interesting. I have also been thinking about buying a used car and possibly a small home, and suspect that this situation could possibly affect those markets. Was curious if anyone else had any thoughts.

Edited July 29, 2023 by blakehampton

[SharperDingaan]

I had forgotten about this thread!

 

Most would expect existing term debt (car lease, hire-purchase, mortgage, etc.) to remain as is; revolving debt (LOC, Credit Card, etc.) called in at the end of the revolving period (month), and a reduction in total credit. Revolving debt that can't be repaid, termed out as the debt becomes due, and remaining available credit reduced to some nominal amount ($500-$1000). Liquidity crunch.

 

The hard arses will cite that it's a great, and quick, way by to reduce the current inflation rate; all quite true. Forgiveness advocates will demand that if students are to carry the inflation can for a time, outstanding student debt has to be guaranteed forgiveness after X years; reasonable.

 

There will be a lot of bitching, but hard not to see it as a win-win for everyone.

 

SD