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And allow for students to file for bankruptcy on their student loans. That will force colleges to slash their insane budgets and stop building luxury dorms, new
by jostmey 8y ago
And allow for students to file for bankruptcy on their student loans. That will force colleges to slash their insane budgets and stop building luxury dorms, new stadiums, and lay off the countless and unnecessary admins.
Salaries for adjunct professors teaching the classes cannot get any lower, so the quality of education could remain about the same
- velcrovan 8y agoWe could even cancel a trillion dollar fighter jet or two.
- harryh 8y agoYour proposal is unworkable because virtually everyone graduates from college with close to zero assets. No matter what someone's ability to repay their loans were, they would have a huge incentive to declare bankruptcy on the day they graduate to discharge the debt.
- kaiju0 8y agoThis is the natural fix. People then don't get the loans they can't afford. There is no limiters in place for a liberal arts major taking out 100k loans. The future is in income sharing agreements. Let the market and investors decide if they can be paid back.
- harryh 8y agoIf college loans could be discharged via bankruptcy it wouldn't just be liberal arts majors with 100k loans who did it, EVERYONE would. Even people graduating and taking high paying jobs who could easily pay back the loans. Saying that college loans should be dischargeable is basically saying that student loans shouldn't exist (which is a fine point of view, but people should be clear on what their position is).
- charlesdm 8y agoYou can't have a loan at high APR and then not have it be dischargeable. It's either a special type, but at low interest, or alternatively, high interest but normal. I like the way this girl did it. Great deal and she was smart about it.
- daniel-cussen 8y agoNo, no, no. Before the seventies student loans could be discharged and less than 1% of lawyers and doctors discharged them through bankruptcy. In general these loans were paid back. Second point. Saying a loan should be dischargeable does not mean the loan shouldn't exist. It is a cost the lender has to assume. And before you point out that this will be inflicted upon the borrower in the form of higher interest, I have my doubts. The bearer of an additional transactional cost depends on mostly on elasticity, but basically there is so much profit in student loans right now the lenders will just make a lot less money, and nothing else will change.
- harryh 8y agoStudent loans were much much smaller in the era you refer to (before 1976 when the law was changed). Behavior would be much different today with the much larger debts people take on.
- daniel-cussen 8y agoTuition was much much smaller in that era too.
- harryh 8y agoIf the point you are trying to make is: 1) loans should be dischargeable via bankruptcy so that 2) lenders refuse to make such large loans so that 3) tuitions are forced down Then I think that's a perfectly fine point of view (as I already said above). It's just important to be clear about it and not simply say that loans should be dischargeable with the expectation that everything else will stay more-or-less the same. Making this change would have an enormous impact on how higher education in the US functions.
- delfinom 8y agoThe problem is the same as companies. Admins won't get slashed, but educators will. Then in many months to years later they wonder why they are on a sinking ship and fire more workers.
- dsfyu404ed 8y agoSo let those institutions fail, or come precariously close. The hole is dug. Getting out will not be fun but we at least need to put down the shovel.