Will federal student loan debt be the next big bailout?

[Cyberowl]

Hahahahahahaha no.

Banks control the world, whinny kids on twitter do not. We would be grateful if our lords and masters in Washington lowered the interest rates.

You can't even get out of your student loans via bankruptcy.

You should rather be happy when the interest rates reach a stable level ~3% (I think the goal is 4 in the US, isn't it? EZB aims for 2%). For your economies sake.

But yeah, the fact than you can't get out of your student loans via bankruptcy is ridiculous.

[Pawstruck]

A lot of entitled ignorance here.

Try going to a country where student loans aren't a thing. Where, if you're poor, your poverty self-perpetuates by lack of access to education. Where even the best potential students are sometimes kept from university. Student loans are a blessing and a luxury which, yes, we must pay for -- sometimes for the next 30 years. Better than spending those years shoveling trash or working fast food.

The problem in my experience is 100% that people don't know why they're getting their particular degree and/or have unreasonable expectations for their own future. Often, spoiled-undergrad-kid dreams have neither the ambition to truly succeed nor the foresight to know what success even is.

Hell, a quarter of people can't even muster the continence to keep it in their pants, and have fathered/mothered children before their life can support it. #kermitteameme

[Cyberowl]

A lot of entitled ignorance here.

Try going to a country where student loans aren't a thing. Where, if you're poor, your poverty self-perpetuates by lack of access to education. Where even the best potential students are sometimes kept from university. Student loans are a blessing and a luxury which, yes, we must pay for -- sometimes for the next 30 years. Better than spending those years shoveling trash or working fast food.

The problem in my experience is 100% that people don't know why they're getting their particular degree and/or have unreasonable expectations for their own future. Often, spoiled-undergrad-kid dreams have neither the ambition to truly succeed nor the foresight to know what success even is.

Hell, a quarter of people can't even muster the continence to keep it in their pants, and have fathered/mothered children before their life can support it. #kermitteameme

Or socialize college education and don't build an industry based off putting young adults into mind-boggling debts already. You know, like you had just some decades ago.

[Tinykong]

A lot of entitled ignorance here.

There is some truth to people ignorantly agreeing to pay a loan back they won't be able to afford. Those people leaving school with a degree in human studies and $150k of student loan debt are idiots, plain and simple.

However, that has nothing to do with a large part of the problem. Schools can charge whatever they want, because the government ensures every student who wants to attend can pay whatever it costs. They have zero incentive to compete on price or control costs.

[cuafpr]

nope, nor should it be.. make a stupid decision, you have to live with it.

[Dsc]

Or socialize college education and don't build an industry based off putting young adults into mind-boggling debts already. You know, like you had just some decades ago.

NO. Socializing it is what got us here. The more if other people's money involved, the more schools charge, as they build monuments to themselves, on state and federal tax dollars. While students go into lifetime debt.

I was speaking with an older gentleman this morning. College cost him $25 per semester. He. Worked a job to pay for it.
Get tax dollars and "juice loans" out. Lower the prices, and force students to get skin in the game if they truely desire an education, and not just "free stuff".

[breadisfunny]

NO. Socializing it is what got us here. The more if other people's money involved, the more schools charge, as they build monuments to themselves, on state and federal tax dollars. While students go into lifetime debt.

I was speaking with an older gentleman this morning. College cost him $25 per semester. He. Worked a job to pay for it.
Get tax dollars and "juice loans" out. Lower the prices, and force students to get skin in the game if they truely desire an education, and not just "free stuff".

ROFL. how old was he 60? 70? it now costs upwards of $25,000 a semester. NO STUDENT CAN AFFORD THAT. costs have spiraled out of control. keep living in that fantasy land though.

[Cyberowl]

NO. Socializing it is what got us here. The more if other people's money involved, the more schools charge, as they build monuments to themselves, on state and federal tax dollars. While students go into lifetime debt.

I was speaking with an older gentleman this morning. College cost him $25 per semester. He. Worked a job to pay for it.
Get tax dollars and "juice loans" out. Lower the prices, and force students to get skin in the game if they truely desire an education, and not just "free stuff".

I raise the average cost of college education and average quality of college education in other first world countries as my next talking point.

Do you think schools should be privatized? Rofl at socialized education raising the prices, when you have to privately put yourself in debt for college up to 6 figures.

[Fugus]

There is some truth to people ignorantly agreeing to pay a loan back they won't be able to afford. Those people leaving school with a degree in human studies and $150k of student loan debt are idiots, plain and simple.

However, that has nothing to do with a large part of the problem. Schools can charge whatever they want, because the government ensures every student who wants to attend can pay whatever it costs. They have zero incentive to compete on price or control costs.

I typically disagree with you a lot, but this one we both agree on. I think the part we disagree on would be how to fix it.

I am of the mind similar to Bernie Sanders where we make public universities free (or at the very least have them operate at dead cost) and then extend from that we get rid of student loans from that point on. It would force the universities to compete with a public alternative so they would have to meet or beat the quality of it while at a price point the users could afford.

And if they are so expensive that the person needs a full on loan to pay it off, sounds like something that they would need to address on a personal level. Would really force many of them to get their expenses in order. No more of those $100+ books that don't go any further than the $25 you buy in stores except for these have questions in them you must have access to and administrative costs that are much more reasonable.

Would have the socialized version offering the baseline of what should be given and then force the private sector to compete with that.

It would also get rid of a lot of idiots who use their loans as extra spending money (Since they will no longer be able to get the loans) to pile on the debt later which many due because they are still around 18-20 years old and still in the impulsive stage where they act before they think too much.

[Mayhem]

NO. Socializing it is what got us here. The more if other people's money involved, the more schools charge, as they build monuments to themselves, on state and federal tax dollars. While students go into lifetime debt.

I was speaking with an older gentleman this morning. College cost him $25 per semester. He. Worked a job to pay for it.
Get tax dollars and "juice loans" out. Lower the prices, and force students to get skin in the game if they truely desire an education, and not just "free stuff".

Uhm yeah, eventually at some point the US is going to figure out how this socialism thing works. Hint: price/cost control. This of course conflicts with the all hailed capitalism at times.

[Stormdash]

ROFL. how old was he 60? 70? it now costs upwards of $25,000 a semester. NO STUDENT CAN AFFORD THAT. costs have spiraled out of control. keep living in that fantasy land though.

You realize that uncapped demand fueled by uncapped borrowing has, all by itself, driven that price up? If everybody wants 100 apples a day and can afford 100 apples a day, what happens to the price of the finite supply of apples?

[Sunseeker]

Although its odd. Banks are actually whining that the young people are not taking out loans for houses and cars, or investing with them. I wonder why?

It couldn't be that kids have figured out the banking system is basically designed to fuck them over could it? Nooooooo, not that.

[Tinykong]

I typically disagree with you a lot, but this one we both agree on. I think the part we disagree on would be how to fix it.

I am of the mind similar to Bernie Sanders where we make public universities free (or at the very least have them operate at dead cost) and then extend from that we get rid of student loans from that point on. It would force the universities to compete with a public alternative so they would have to meet or beat the quality of it while at a price point the users could afford.

I completely agree with this, if it or a candidate proposing it was on the ballot, I would immediately vote yes.

It would also get rid of a lot of idiots who use their loans as extra spending money (Since they will no longer be able to get the loans) to pile on the debt later which many due because they are still around 18-20 years old and still in the impulsive stage where they act before they think too much.

Technically, you can't legally use the money from your loan to buy rims for your car. I'm sure some people do. However, a lot of people use that money to pay for housing, food, etc. (qualified expenses) while in school, because they can't afford it otherwise. Reducing costs might help that problem since a lot of students are stuck working to pay for books and stuff, and could instead use that money for other expenses.

[Alvito]

Companies getting financial aid is something most of both parties will support, even if they do it quietly. Financial support for people is not nearly as popular across party lines.

[Naxere]

Here's a novel idea: Not everyone needs to go to college to be successful.

[Mayhem]

You realize that uncapped demand fueled by uncapped borrowing has, all by itself, driven that price up? If everybody wants 100 apples a day and can afford 100 apples a day, what happens to the price of the finite supply of apples?

Uncapped demand? What?

[Sky High]

wooo so glad I've stayed the fuck away from state colleges for so long. rather spend 5-6 years figuring out what I want to do with my life at $1-2,000 a semester then deal with student loans.

[Mayhem]

http://www.cnbc.com/2015/06/16/why-c...nd-rising.html

interesting read

[Malachi256]

The whole situation has been absurd from the beginning. Handing out loans to anyone who "needs" one, allowing them to fail their way through multiple semesters of a degree that has terrible job prospects regardless? Ridiculous.

Put the loans back into the hands of local bank-types, who actually have to assume the risk of said loans. Suddenly you'll see students having to perform well to keep getting their checks, and they'll have to show a career plan to a loan officer in order to get a loan in the first place. And now you can allow for bankruptcy.

Of course this will mean less students. But that's the harsh reality. Government is dealing less and less with harsh reality though, they'd rather live in the fantasy world of "everyone goes to college and we're all better because of it."

[cam5778]

I'm 25 years old and almost a year into paying my student loans. I don't regret it for as second and I wouldn't support a free hand. It was a sacrifice and a risk, but it paid off as I'm working for a large CPA firm. I also believe if you make a commitment and sign your name to it, you better keep your damn word.