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The banks that loaned out all that money will need massive bailouts or else shut down. Let’s be clear, students will NEVER be allowed to default these loans, n
by matte_black 9y ago
The banks that loaned out all that money will need massive bailouts or else shut down.
Let’s be clear, students will NEVER be allowed to default these loans, nor should they. They must either pay it or take their debt to the grave and pass it down to their heirs.
- irrational 9y agoWait, what? Since when is debt passed on to heirs? If I die with credit card debt, that debt dies with me. My kids don't have to pay my debt. Any assets I own will be sold to help pay off my debts, but if the sale of my assets isn't equal to or greater than my debts, the debt holders have to write off that debt.
- rhombocombus 9y agoIt isn't, student debt dies with you too, or at least federal debt does.
- r00fus 9y ago> Let’s be clear, students will NEVER be allowed to default these loans, nor should they. Why not?
- matte_black 9y agoBecause that was the deal.
- rhombocombus 9y agoLast time I checked, "the deal" as it were indicates, in writing, that student loan debt from the federal government is forgiven on death.
- fixermark 9y agoIt is, of course, possible for the federal government to craft a deal that's actually bad for the American people. When discovered to be so, it's also possible to alter the deal.
- jackstraw14 9y agoI agreed to this deal and I feel like I do need to pay off the debt, but I'm lucky in that I have a job that will allow me to do it the normal way if the crypto market crashes (heaven forbid, plz). What about the 18 year olds whose helicopter parents never allowed them to imagine a filthy reality like failing to go to college? Regardless of whether that kid should have been free-thinking enough to see outside their existence's bubble, it's irresponsible to exploit their ignorance for profit. Most of these kids haven't ever seen a debt-ridden life like they're signing up for. I grew up with parents who ranted and raged about debt, and I still did it. Are you sure the problem lies with the kids signing the papers (I guess clicking the "Get your loan here!" button these days)?
- IncRnd 9y agoThe deal is that student loans in chapter 7 bankruptcy can only be discharged for undue hardship. Chapter 13 can't discharge student loans according to my understanding.
- infamouscow 9y agoBecause most of these students will likely default. And once the tax base drops, other government budgets are impacted resulting in a net loss for society. The alternative is the government only offers loans to students majoring in fields that lead to jobs capable of repaying.
- marcelluspye 9y ago>pass it down to their heirs. AFAIK, (and I'm a pretty ignorant fellow) debt in America isn't passed down, the creditors just take what they're owed out of a dead person's estate before its divied up by a will. So there could be a big "pop" if a bunch of people with lots of student loan debt and no assets die.
- mikestew 9y agothe creditors just take what they're owed out of a dead person's estate You mean the estate that contains value I would otherwise get the full value of were it not for the student loan debt that was taken out? The debt is most certainly passed down, it's just abstracted away a bit. The only way the debt doesn't get passed down is if the debtor dies penniless. Another way to put it is if the creditor extracts anything to pay that debt after the debtor dies, then the debt is most certainly passed on to someone because that money didn't materialize out of nowhere.
- zhjansbnas 9y agoNo, the money materialized from the lender when the loan was taken out. Some of the money might be recouped before or upon the death of the borrower - some might never be recouped.
- ctrl-j 9y ago> Let’s be clear, students will NEVER be allowed to default these loans, nor should they. They must either pay it or take their debt to the grave and pass it down to their heirs. You wanna try that again with a little empathy?
- matte_black 9y agoI have no empathy for bad short term thinking. I could not afford to go to the college I wanted to go to, so I went to a cheaper one I could afford but no one really gives a fuck about. However, it left me with no debt, straight after graduating. Today, as people struggle to pay off loans for universities they once boasted proudly about, it’s clear I made the right choice.
- Density 9y agoI did the same thing most of a decade ago. That pathway has unfortunately closed since the cheap college i went to tripled their tuition.
- IncRnd 9y ago1) The loans that are being discussed are not owned by private banks, so even if 100% were defaulted there would be no bailout of banks needed. 2) There are no blood debts in the US. Debts are NOT passed on to heirs like property.
- krapp 9y ago>2) There are no blood debts in the US. Debts are NOT passed on to heirs like property. Not yet, but given the steady rightward shift of American politics I can see it happening in the future.
- dang 9y agoPlease don't post ranty flamebait to Hacker News. Divisive threads are low-quality enough as it is. https://news.ycombinator.com/newsguidelines.html https://news.ycombinator.com/newsguidelines.html
- dragonwriter 9y ago> Let’s be clear, students will NEVER be allowed to default these loans, nor should they. I think you mean “discharge in bankruptcy”, not “default”; default is what happens when you miss a scheduled payment; lots of students do default. Also, they are dischargeable in bankruptcy, though the standard is harder than with other debt.