Trump administration rolls back protections for people in default on student loans

[Theinquisition]

Few if any chirp when colleges indirectly use taxpayer dollars to build or rebuild football stadiums, for example. Boosting fees on a loan that the student already can't pay just seems short-sighted, so it's no surprise this administration came up with the idea.


Here's how to actually solve the issue: Student loans are null and void until the graduate is working in a field related to his / her degree, with a salary commensurate to the caliber of the degree.

/yes, I know that will never happen.

How about we stop the govt from backing student loans. Prices will go down.

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The banks got a bailout. Automotive manufacturers got a bailout. It's time for college students to get a bailout.

Why? Bailouts were a shitty idea to begin with.

If youre an adult, and you sign for a student loan, be an adult and pay your bills. This whole idea of forsaking personal accountability is appalling.

[Spectral]

Why? Bailouts were a shitty idea to begin with.

If youre an adult, and you sign for a student loan, be an adult and pay your bills. This whole idea of forsaking personal accountability is appalling.

The other alternative I see as possible is holding the universities directly liable for defrauding the students. Obviously students enter the arrangement and sign over a huge amount of money to universities with the belief that they're receiving an education that will enable them to earn sufficient money to pay that loan back. In some cases, they've basically been lied to and deceived into believing that. Normally, if there's a product that turns out to have been blatantly worthless and a consumer that was tricked into buying it, the seller is in some pretty deep shit - why are universities completely innocent in this tale?

[Macaquerie]

The root of the problem is that the university system was never intended to train the work force and relying on it to do so is horrendously inefficient. Liberal arts are called that not because of ideology but because you had to be "free" of the need to work in order to pursue them, they are meant to be idle intellectual pursuits for the elites, not something that would ever be useful for the general public. The true value of a college education was always in forming social networks for future professional gain, but like any club, expanding the circle too much effectively renders it useless and there isn't much of a competitive advantage you can get from exploiting these connections anymore.

Universities need to be stripped of all this bullshit pomp and grandeur they've built up over the years and refocus on the one task they are suited for - training the small handful of students with both the talent and inclination to pursue a specific field in depth for a career in academia or related industries. The general public needs to recognize that they are NOT a viable means of climbing the socioeconomic ladder and never have been, and that there's no point in deluding yourself into thinking that you're not just spending all that money to party and skip class for four years.

[Theinquisition]

The other alternative I see as possible is holding the universities directly liable for defrauding the students. Obviously students enter the arrangement and sign over a huge amount of money to universities with the belief that they're receiving an education that will enable them to earn sufficient money to pay that loan back. In some cases, they've basically been lied to and deceived into believing that. Normally, if there's a product that turns out to have been blatantly worthless and a consumer that was tricked into buying it, the seller is in some pretty deep shit - why are universities completely innocent in this tale?

I dont disagree, but honestly...why arent students doing this research? Its not that difficult to pull up BLS stats on job availability, growth, and expected incomes.

It doesnt take a rocket scientist to figure out that a bachelors in gender studies isnt going to lead to a six figure job.

[Spectral]

I dont disagree, but honestly...why arent students doing this research? Its not that difficult to pull up BLS stats on job availability, growth, and expected incomes.

It doesnt take a rocket scientist to figure out that a bachelors in gender studies isnt going to lead to a six figure job.

I'd like them to, but let's keep in mind the propaganda that flies around - almost every kid at 14 years old is inundated with the messaging that the high status, morally virtuous thing to do in life is to go to college. They're further inundated with messaging to pursue their dreams, that they shouldn't be beholden to something like a job, but should do what they love.

I blame the cynical fucks in their fifties that make millions of dollars on "non profit" universities that charges $50K/year a lot more than I blame 17 year old kids that followed the bad advice they were given by adults.

[Theinquisition]

Id also like to point out that a recent study has shown that over 30% of university students spend some of their college loan money on spring break trips.

[Stormspark]

People who aren't going to pay you back with ZERO fees aren't going to pay you back with higher added fees. The whole education system needs torn down and rebuilt from the ground up. Fuck school loans, go to vocational school and learn a trade while it's free in high school. Make 50k+ out of the gate, with no debt.

But...but...all they have to do is stop buying iphones!

I have a feeling this is going to be happening soon: http://tvtropes.org/pmwiki/pmwiki.php/Main/EatTheRich

I personally dropped out of college after 3 terms back in 1991, after only spending something like $1000, and I didn't go back. I have no plans to ever go back. I'm making good money now, and when I do die, I have already made plans for everything I have to be liquidated to cash and given to an animal shelter. If there are any medical bills, they just won't get paid, because I have people that will make sure the liquidation happens very quickly. That's only assuming it's sudden. If I have any advance knowledge, I do the liquidation myself.

[Orlong]

Good. Pay your damn bills and stop expecting others to bail you out

[Nitros14]

We're talking about punishing people usually for a decision they make when they're 18-19 and have been told by their school to get a bunch of degrees or face total failure in their lives forever. Often with a great deal of pressure from their parents.

[Theinquisition]

I'd like them to, but let's keep in mind the propaganda that flies around - almost every kid at 14 years old is inundated with the messaging that the high status, morally virtuous thing to do in life is to go to college. They're further inundated with messaging to pursue their dreams, that they shouldn't be beholden to something like a job, but should do what they love.

I blame the cynical fucks in their fifties that make millions of dollars on "non profit" universities that charges $50K/year a lot more than I blame 17 year old kids that followed the bad advice they were given by adults.

Oh yeah, ive been opposed to the tripe that has been fed to kids regarding college forca while now.

There is plenty blame to go around.

[Malfecto]

The student loan bubble is the next catastrophe on the economic horizon. I don't know what needs to be done to fix it, but not providing some proper path for reconciliation, as was needed between borrower and lender in the housing market, is not the way to do it. This doesn't mean that you can simply ignore your loan, or that companies cannot sanction the borrower to prompt repayment. In order to be in true default of a student loan, you have to either be ignorant of or ignored the many ways you can change repayment plans, consolidate, or even have the loan forgiven.

In the end, you borrow money, you owe money. If this concept wasn't clear when the loan was made, perhaps the person getting it shouldn't have gone on to higher education in the first place. You are not entitled to education, nor are you entitled to expect that others will pay to cover your debt. I owed a substantial amount when I graduated. I worked off-degree jobs, then degree jobs, saved and scrimped to pay it off, and now the only debt my household carries is our house note. It entailed a lot of work and a lot of sacrifice. I think the resentment from the general public is that there are those who have used the past administration's incentives to not pay. Obama didn't do us any favors with his pen. All he did was kick the can down the road. It was a bandaid.

Now, Trump's having to do the gritty work of pulling back the bandage to see just how bad the wound is. It is unfortunate, but do people really want another 2008? It is an anchor on our economy. An anchor made out of dynamite.

[Venant]

Trump just wants to prove he is an enemy to the American people every day.

And to think after he was elected there was a short period of time I tried to delude myself into thinking "It couldn't be that bad right?"

Everyone that doesn't give you free stuff is an 'enemy of the people'? Sounds like more proof that colleges have just become indoctrination camps.

[Macaquerie]

I'd like them to, but let's keep in mind the propaganda that flies around - almost every kid at 14 years old is inundated with the messaging that the high status, morally virtuous thing to do in life is to go to college. They're further inundated with messaging to pursue their dreams, that they shouldn't be beholden to something like a job, but should do what they love.

I blame the cynical fucks in their fifties that make millions of dollars on "non profit" universities that charges $50K/year a lot more than I blame 17 year old kids that followed the bad advice they were given by adults.

Kids don't go to college to pursue their dreams, they go there because of the belief that going to a good school means you can make the right connections to advance yourself socioeconomically, which only works if it's just rich kids going to college, not everyone. And because college applications put so much emphasis on personality and extracurricular activities, most students are totally out of their depth academically by the time they get to college, meaning that they have to choose some bullshit major like gender studies just so they can pass and get a degree.

[Spectral]

Everyone that doesn't give you free stuff is an 'enemy of the people'? Sounds like more proof that colleges have just become indoctrination camps.

It also sounds like evidence of the incredibly privileged place that universities and banks have in culture and law. When a topic like this comes up, the only solutions that most people seem consider (and certainly the only things politically feasible) are either telling the former students to suck it up or bailing them out with taxpayer money. There's very little consideration of telling universities that they have to give back the $100K that they took or telling the banks too bad, so sad, invest better next time.

[Stormspark]

https://en.wikipedia.org/wiki/Rent-seeking

[Theodarzna]

Student loan debt will be the great cancer on America society.

But neither party dares fight the banks on this one. But it will destroy us eventually.

[fwc577]

I don't understand, people can't afford their payments and default, so they're going to try to charge even more money as a result?

What I really don't understand is people defaulting at all. I have 50k in loans and my payment is like $300-$400 a month (will eventually raise).

They have a lot of options so you don't default.

[Theinquisition]

Student loan debt will be the great cancer on America society.

But neither party dares fight the banks on this one. But it will destroy us eventually.

Fight the banks? Why? If people voluntarily chose to accept loan money, those people should be accountable. No one held a gun to their head and made them sign.

[Nitros14]

What I really don't understand is people defaulting at all. I have 50k in loans and my payment is like $300-$400 a month (will eventually raise).

They have a lot of options so you don't default.

$400 a month is a third of your monthly income on minimum wage. Lots of people are making that after they can't find anything related to their degree.

Fight the banks? Why? If people voluntarily chose to accept loan money, those people should be accountable. No one held a gun to their head and made them sign.

17 year olds aren't generally in a good position to understand what they're getting themselves into when they sign up for that student loan. Especially when the schools are telling them what a great idea it is. It's a predatory business practice taking advantage of kids.

[Theodarzna]

Fight the banks? Why? If people voluntarily chose to accept loan money, those people should be accountable. No one held a gun to their head and made them sign.

Ideology is a lovely thing to have, but clinging to it to the point of suicide is fucking ridiculous and obtuse. At some point people need to set ideology aside for a bit. A single generation owing well over a trillion dollars will ruin this country economically, demographically and socially.

Sorry guys, but the Market has to take a backseat to survival.