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Yes, the 30+ year olds have to make the tough decision of defaulting on their loans and severely limiting their ability to secure loans in the future, vs. conti

Yes, the 30+ year olds have to make the tough decision of defaulting on their loans and severely limiting their ability to secure loans in the future, vs. continuing to work towards paying off their student loans. If there was no repercussion to defaulting on loans why would anyone ever pay off a loan? This is precisely why it makes sense to restrict ability to default on student loans for a certain duration. Even if you have six figure salary as a new grad, it'd still make sense to default on your student loans immediately after graduation and plan your life around having a terrible credit score until your 30s. Pay for cars in cash, and don't plan on buying a house until one's 30s. Everyone would do this because it's basically getting money for free. And consequently nobody would issue student loans, even to students going to good schools and studying in demand majors, because students can effectively just walk away from the loans. Yes, it's not doing anything for people 22-30. This is deliberate. The point is to make sure students who can pay off their loans do pay off their loans. We make recipients of student loans wait until 30-35 to be able to default on loans so that only the ones who are genuinely stuck with loans they can't pay off go through with the default. Yes, their credit score will tank. But that's the consequence of defaulting on a loan. If you could default on a loan without impacting your credit score, you'd be a fool not to default on every loan you have right now - but you wouldn't actually have any loans because nobody would lend money under sucha scenario.

Melting_Harps 6y ago
> If there was no repercussion to defaulting on loans why would anyone ever pay off a loan? > Are you joking? Do you not realize that any current problems were caused by the current system? What's even more telling is how that all happened when I was in school, prior to my JR year defaulting on student debt was what most did when they got to the professional levels and secured a decent job--and this was back when university costs were much lower and more broadly available, too. I've had several boomer aged physicians/surgeons/anesthesiologists/lawyers laugh about it when I was in motorsports and told us to explore it despite the stigma as it 'paid in the end.' In many ways I think this predatory model of extracting wealth from the youth is not only short sighted its absurd; reducing the quality of life with underemployment/unemployment creates lost generations like they have in Japan, and unless the goal is to lower the population at all costs then not much 'good' comes out of it except Zombie banks, high national//coprprate debt ratios, mass impoverishment of Society as a whole and suicide as proved by the last 30 years of Japanese Sociological observations. Then again, some study using Machine Learning was stated to have had 'break through' results identifying India was not in poverty, only to see that Apple factory workers were paid $7/month instead of the ~$100 and proceeded to smash the factory. Are people still in doubt we live in a Dystopic Cyberpunk existence already? Its not just an overly hyped game, its clear to see we've been in one for over a decade now. Its just not all neon, robotic enhancements and flying cars; everything else seems to be lock step with the genre from an untouchable Corporate Class, decaying environment, to poor living standards, wide spread disease and poverty.

Melting_Harps 6y ago

> If there was no repercussion to defaulting on loans why would anyone ever pay off a loan? > Are you joking? Do you not realize that any current problems were caused by the current system? What's even more telling is how that all happened when I was in school, prior to my JR year defaulting on student debt was what most did when they got to the professional levels and secured a decent job--and this was back when university costs were much lower and more broadly available, too. I've had several boomer aged physicians/surgeons/anesthesiologists/lawyers laugh about it when I was in motorsports and told us to explore it despite the stigma as it 'paid in the end.' In many ways I think this predatory model of extracting wealth from the youth is not only short sighted its absurd; reducing the quality of life with underemployment/unemployment creates lost generations like they have in Japan, and unless the goal is to lower the population at all costs then not much 'good' comes out of it except Zombie banks, high national//coprprate debt ratios, mass impoverishment of Society as a whole and suicide as proved by the last 30 years of Japanese Sociological observations. Then again, some study using Machine Learning was stated to have had 'break through' results identifying India was not in poverty, only to see that Apple factory workers were paid $7/month instead of the ~$100 and proceeded to smash the factory. Are people still in doubt we live in a Dystopic Cyberpunk existence already? Its not just an overly hyped game, its clear to see we've been in one for over a decade now. Its just not all neon, robotic enhancements and flying cars; everything else seems to be lock step with the genre from an untouchable Corporate Class, decaying environment, to poor living standards, wide spread disease and poverty.