3 ms·

Student debt is the epitome of rent-seeking. You can't even discharge it with bankruptcy. Cancel it.

EvanAnderson 5y ago
The terms and conditions of the debt obligation are known up-front. If the terms of the loan were onerous the borrowers shouldn't have accepted them and declined the loan. Why is poor financial literacy and wishful thinking about future job prospects on borrowers' parts my problem to be left holding the bag for?
- deregulateMed 5y ago
  I remember being 18 and being the 1 kid in class saying 'Going away to college and spending 30k/yr on a music degree is a bad idea' I was right. They didn't listen. I'm bailing them out today.
  - jvanderbot 5y ago
    Perhaps. The meager amount they are currently paying on loans (if any, given deferrment options) is much offset by public and tax subsidies for low earners. OTOH, I agree. If they are earning income and repaying, then I don't see a reason to nullify any loans of theirs. ( or mine )
- hu3 5y ago
  As if students have a choice. Don't like the terms? Sorry, no education for you.
  - EvanAnderson 5y ago
    I'm leaning more towards: "Sorry, no private out-of-state liberal arts college for you..." than "Sorry, no education for you." The free-flowing student loan money has created the same kind of bubble that "stated income" and "0% down" loans created in housing in 2008.
- valeness 5y ago
  Are we expecting full financial literacy from people who can't legally decide if taking a shot of whiskey is in their best interest or not? Or from the same people who often cannot even rent a car? Or people with no credit history? An entire forum of what I consider to be some of the smartest adults in the world (myself excluded lol), can't even agree on what this "debt oligation" means; and we're supposed to place this burden of understanding on people who have to raise their hand to ask to go to the bathroom? We have controls on taking on debt for the other 99% of credit line applications, why is this one so significantly different?
deregulateMed 5y ago
I like democracy, but you see this and wonder how many people are short sighted (answer- most people). Maybe we really do need AI overlords. Op- you haven't attempted to think of the repercussions of such an event. If you want to weigh pros and cons, you can. For everyone else, is today's candy of free college worth a collapse of faith in our financial system? Is it better to get rid of college debt and have people never trust investment? My best answer is that a financial collapse might help the environment. But it would also cause incredible numbers of dead humans.
- jvanderbot 5y ago
  This debate confuses public debt with private debt. I doubt USA is going to tell someone else they cannot collect a debt. But as a creditor, USA has the option to call a loan of its own lending forgiven. See Public Student Loan Forgiveness for precedent.
bluGill 5y ago
I think student dept should be discharged in bankruptcy - but along with it you need to also discharge the education you got. I can't think of any way to do that (outside of science fiction).

The terms and conditions of the debt obligation are known up-front. If the terms of the loan were onerous the borrowers shouldn't have accepted them and declined the loan. Why is poor financial literacy and wishful thinking about future job prospects on borrowers' parts my problem to be left holding the bag for?

deregulateMed 5y ago
I remember being 18 and being the 1 kid in class saying 'Going away to college and spending 30k/yr on a music degree is a bad idea' I was right. They didn't listen. I'm bailing them out today.
- jvanderbot 5y ago
  Perhaps. The meager amount they are currently paying on loans (if any, given deferrment options) is much offset by public and tax subsidies for low earners. OTOH, I agree. If they are earning income and repaying, then I don't see a reason to nullify any loans of theirs. ( or mine )
hu3 5y ago
As if students have a choice. Don't like the terms? Sorry, no education for you.
- EvanAnderson 5y ago
  I'm leaning more towards: "Sorry, no private out-of-state liberal arts college for you..." than "Sorry, no education for you." The free-flowing student loan money has created the same kind of bubble that "stated income" and "0% down" loans created in housing in 2008.
valeness 5y ago
Are we expecting full financial literacy from people who can't legally decide if taking a shot of whiskey is in their best interest or not? Or from the same people who often cannot even rent a car? Or people with no credit history? An entire forum of what I consider to be some of the smartest adults in the world (myself excluded lol), can't even agree on what this "debt oligation" means; and we're supposed to place this burden of understanding on people who have to raise their hand to ask to go to the bathroom? We have controls on taking on debt for the other 99% of credit line applications, why is this one so significantly different?

deregulateMed 5y ago

I like democracy, but you see this and wonder how many people are short sighted (answer- most people). Maybe we really do need AI overlords. Op- you haven't attempted to think of the repercussions of such an event. If you want to weigh pros and cons, you can. For everyone else, is today's candy of free college worth a collapse of faith in our financial system? Is it better to get rid of college debt and have people never trust investment? My best answer is that a financial collapse might help the environment. But it would also cause incredible numbers of dead humans.

jvanderbot 5y ago
This debate confuses public debt with private debt. I doubt USA is going to tell someone else they cannot collect a debt. But as a creditor, USA has the option to call a loan of its own lending forgiven. See Public Student Loan Forgiveness for precedent.

bluGill 5y ago

I think student dept should be discharged in bankruptcy - but along with it you need to also discharge the education you got. I can't think of any way to do that (outside of science fiction).