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They should require banks to forgive loans, rather than forgiving Federally-backed loans. If you require banks to forgive loans (or if you allow loans to be di

by Jiro 4y ago

They should require banks to forgive loans, rather than forgiving Federally-backed loans. If you require banks to forgive loans (or if you allow loans to be dischargeable in bankruptcy), you create an incentive for the banks to loan money only for college education that results in useful careers. The Federal government is immune to market forces, so forgiving Federal loans just means you encourage the type of college degrees that are not useful.

lifeisstillgood 4y ago
Not convinced - a sensible bank will look at the likelihood of a person to get a good job after their education, and might conclude that while choosing Engineering over Art History is a factor, there are far stronger factors like - parents wealth and social position - wealth of parents of peer group at the university - skin colour, gender - propensity for drug alcohol abuse in the family - heart and other medical conditions that might result in early death We choose welfare insurance at the state level to avoid / correct these undesirable features of our current society, not to continues them into the next generation
- bombcar 4y ago
  Then the government should handle the loans directly and not involve the banks at all. All other debt can be discharged in bankruptcy, so the banks have free reign to be racist on mortgages and credit cards, but somehow student loans is the problem? Also see who asked for student loans to be non-dischargeable hmmm.
nonameiguess 4y ago
You're missing the point of the PSLF. It's intended to provide incentives for highly qualified people to choose public service rather than go into lucrative careers. These are considered "useful" careers, but they don't pay well. For instance, I currently work as an individual contributor platform developer for the US Air Force and I make more than the 4-star chief of the entire Air Force, yet presumably he has more of an impact on the country at large than I do. I believe the president is the only federal employee with a higher salary than me. The purpose of programs like this is to make sure we still have people willing to work for the government at all, given everything else they need to give up to do it.
- SubiculumCode 4y ago
  Personally, I think we should just raise government salaries to be competitive. I'm personally getting sick of being paid 60% of my worth to the private market by my job doing science at the university.

by Jiro 4y ago

lifeisstillgood 4y ago

Not convinced - a sensible bank will look at the likelihood of a person to get a good job after their education, and might conclude that while choosing Engineering over Art History is a factor, there are far stronger factors like - parents wealth and social position - wealth of parents of peer group at the university - skin colour, gender - propensity for drug alcohol abuse in the family - heart and other medical conditions that might result in early death We choose welfare insurance at the state level to avoid / correct these undesirable features of our current society, not to continues them into the next generation

bombcar 4y ago
Then the government should handle the loans directly and not involve the banks at all. All other debt can be discharged in bankruptcy, so the banks have free reign to be racist on mortgages and credit cards, but somehow student loans is the problem? Also see who asked for student loans to be non-dischargeable hmmm.

nonameiguess 4y ago

You're missing the point of the PSLF. It's intended to provide incentives for highly qualified people to choose public service rather than go into lucrative careers. These are considered "useful" careers, but they don't pay well. For instance, I currently work as an individual contributor platform developer for the US Air Force and I make more than the 4-star chief of the entire Air Force, yet presumably he has more of an impact on the country at large than I do. I believe the president is the only federal employee with a higher salary than me. The purpose of programs like this is to make sure we still have people willing to work for the government at all, given everything else they need to give up to do it.

SubiculumCode 4y ago
Personally, I think we should just raise government salaries to be competitive. I'm personally getting sick of being paid 60% of my worth to the private market by my job doing science at the university.