Med school debt can be crazy.
I’d be more inclined to go after the lenders than the colleges. If a college wants to offer a useless degree and trust fund kids and/or future housewives want to pursue it that’s fine. But we don’t need it to be taxpayer subsidized.
This is a horrible way to incentivize debtors to continue making payments on their other student loans. They’re just going to wait it out until there’s another forgiveness program. (let’s all be honest here, there will be another forgiveness program - this is just another baby step towards free college for everyone)
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This is where community college helps out a lot. Improve your education “credit score” there for a few years.
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I assume those kids aren’t borrowing to go to school, so I’m just ignoring them for policies on lending.
I thought 90% percent of student loans come from the gov’t.
Do you mean “Get the gov’t out of the student loan business”? And, presumably, make it easier to cancel loans through bankruptcy?
Private firms will want to underwrite. I think colleges are in a better position to do that. They have better data on who persists to a degree, for example.
If colleges want students, they should lend the money themselves. Ivy Leagues are just giant hedge funds anyway
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Is there a corresponding tax increase that is notionally going to pay for the cost of this loan forgiveness?
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I complain about tax cuts for the rich all the time.
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Moving forward I’d rather see low interest loans than loan forgiveness.
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College costs have gotten way out of hand. I am waiting for the bubble to burst.
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Yes they have, and so has the supply of easy money for which to pay these out of control costs. It’s a nasty spiral. Colleges have been under no competitive pressure to hold down costs, as a matter of fact, it’s been just the opposite, colleges often compete with each other by the quality of their dorms, student centers, athletic facilities, and many of soft features. Of course, all of these things cost money in the form of tuition, fees, room & board. And that’s where the supply of easy loan money just throws gasoline on the fire.
“Waiting for the bubble to burst”, I’m not sure if that’s going to happen, there are more kids now in college than ever before. (mainly because there are more kids now than ever before, but they’ve also been sold a false dream about a college education being the golden ticket to the future).
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I’m pretty disgusted with my alma mater for jacking up tuition and building a bunch of stuff that’s nice but college kids really don’t need. I had an amazing time stuffed in a dorm with a roommate and a crappy cafeteria.
I guess I do… I probably don’t know as much about this as I should.
Absolutely. But don’t put taxpayers on the hook for delinquencies.
You’d need a special set of rules for student loans, given that education is a non-tangible asset. The reason they were made non-dischargeable in the first place is that it’s not really right that someone gets a medical degree with no assets and $250,000 of student loans, declares bankruptcy, and 7 years later is a rich doctor with a free education.
So some set of rules that doesn’t forgive the doctor’s student loans but does for the barista who never finished college but racked up a ton of student loans trying. And a private lender / investor on the hook for the discharges loan.
I guess you could base it on the anticipated 15 year income stream for someone with that level of education. And you can’t include them in your bankruptcy filing for 7 years after your last college class. Or something. I’m not positive how to draft the rules to catch the needy and not the greedy.
You say that like it’s a bad thing.
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So you’d like to extend institutional racism further into student loan lending?
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Oh, I wasn’t clear enough. Let me me extremely obvious: Free college for everyone is a bad thing.
what could wrong with more easy money being thrown at colleges. I’m sure this time we’ll get it right
:eyeroll:
I guess the USA just isn’t as excellent as the rest of the free world.
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…and that’s why hundreds of thousand of people are right now paying huge sums of money and risking their lives to get into the USA. Someone needs to inform them of your definition of excellence. They need to be immediately informed.
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