Will federal student loan debt be the next big bailout?

[the game]

So a rising problem in the united states is student loans. I've read it's up in the billions right now. Will student loans be the next big bailout in america now that the banks have been bailed out?

[GennGreymane]

Doubtful. The bank bailouts were not popular. Also it just reeks of the hated socialism people dislike.

[Tikaru]

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.

[Roostercogburn]

Haha. No.

That's a good one. I'll let you kick me in the nuts when it does. I suspect I will be dead by then.

[GennGreymane]

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?

[Spectral]

Probably not. It's only about a trillion dollars total the last I'd seen, which isn't much money in the scope of the United States economy, and most of it will be paid in due time. If they had to eat 10% of it and bail out $100 billion, that wouldn't really move the needle much in the grand scheme of things.

[Roostercogburn]

Doubtful. The bank bailouts were not popular. Also it just reeks of the hated socialism people dislike.

It's just sad that the banks can get a bailout. Auto industry can get a bailout. But Americans can't.

- - - Updated - - -

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?

Banks are stupid in all things not pertaining to money.

Logic and reason and personal hardship are foreign to them

[Grummgug]

The real problem is that young adults in their 20s and 30s are unable to be rabid consumers like people 20 years ago were because they must pay down massive college debts. Unfortunately for millennials, when people enter their 40s and 50s, their spending drops. That means, it makes more sense to totally write off the millennial generation. Instead of bailing millennials out, they will probably just let them suffer for the rest of their lives under debt, and focus on cutting the cost of college education for future generations of young adults.

It didn't have to be this way, but, millennials voted for Obama who was key to the massive bank bailouts that set all of this up. They asked for it and got it.

One solution would be to have "public college" in the same sense that we have "public high school". Public high school is free and government run, an option to private colleges. Just create a viable college version of a 4 year degree.

Republican governor of Texas Rick Perry pushed for universities to offer some 4-year degrees for $10,000 total.
http://www.politifact.com/texas/stat...-have-announc/

Republican governor of Florida Rick Scott did the same.
http://www.politifact.com/florida/st...offer-10k-deg/

These are not the best degrees you can get. But the point is these are stepping stones to bigger solutions. Proof-of-concept models. First, get universities to show they can offer a 4 year degree for $10k. Then get them to expand the program to more desirable degrees.

Just another example of republicans helping the little guy (which doesn't get reported by the whackjob left media outlets like CNN or MSNBC).

[Fugus]

Grummgug, the public didn't want to bail the banks out, a great deal of us wanted to watch them go under and them just bail out their customers. We wanted bankers in JAIL, not what we got.

And you can't blame people for voting Obama when the other option was Romney which would have been even worse. I would rather we had a viable 3rd party that was worth crap back then, but I can't remember one. This time we at least have Bernie Sanders worth voting for which this is actually one of his things he is trying to fix.

Bernie Sanders is actually trying to have Public Colleges in the same way we have Public High Schools.

[Deleted]

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?

Probably because people still have somewhat fresh scars from 2001 and 2008 trainwrecks and banks have to face the reality of simply being not trustworthy.

[Schmeebs]

Students with massive loan debt don't contribute enough to political campaigns for this to happen.

[PosPosPos]

Probably because people still have somewhat fresh scars from 2001 and 2008 trainwrecks and banks have to face the reality of simply being not trustworthy.

He's being facetious and sarcastic.

[Primalthirst]

You'll pay your debts and you'll say "thankyou sir, may I please have another" and you'll like it.

Or

You could institute a sane tertiary education system where one can attend a world class university and walk away with a degree with $20k or less in total tuition fees.

[Doctor Amadeus]

I am all for it, we bailed banks out, student should get bailed out, since they need to motivation, and a lot of people retiring will depend on them.

[Sargerasraider]

You'll pay your debts and you'll say "thankyou sir, may I please have another" and you'll like it.

Or

You could institute a sane tertiary education system where one can attend a world class university and walk away with a degree with $20k or less in total tuition fees.

One of the current problems is that banks are able to loan very large amounts of money to young people at no risk to themselves. Seeing this, universities will keep raising tuition rates as people will continue to take out those loans.

I think one potential solution would be to allow bankruptcy on student loans. There will be more risk in making the loans in the first place, and having less money available should lead to decreased tuition rates.

I don't like the idea of a responsibility-free bailout. A person -did- agree to the terms of the loan, and there should be some consequence to not paying it back.

[PACOX]

Bailout? Who knows, but its a bubble waiting to pop. As the cost of education rises but employee compensation doesn't rise with it people will either avoid college to avoid the staggering debt of those out of college will stop contributing to the economy to pay off their student debt. And since the allocated time to pay off debt is ~10 years thats a lot of time with people skilled workers pinching pennies just to pay off their education. As the last baby boomers retire and are replaced with Millennials we'll see a decrease or debt (and thus defaults) because the Millennials cannot afford the education to replace the Baby Boomers. Even merit based aid is increasing becoming not enough for people to pay for education. 4 year degrees haven't actually been just 4 years for some time because its becoming increasing unfeasible to earn a degree in 4 years and support yourself at the same time. Soon that bubble will pop, the solution is unknown.

The conditions tied to student loans simply do not fly when it comes to other real life loans. Student loans have become unapologetically predatory as a way to take advantage of people looking to do right and educate themselves so they can have good jobs. The effort to better oneselfisn't yielding the proper results (financially). That and schools saw a influx of students after the 2008 financial crisis due to layoff and skillsets becoming obsolete. Something must be done but I feel like those in office really don't care because they'll be out of office and/or dead by the time the situation becomes dire.

[Wells]

Letting students discharge debt in bankruptcy would be nice.

[Independent voter]

Well, tax payers co-signed your student loans. If you don't pay your student loans off, tax payers will have to. You'd be amazed at what lengths tax payers will go to to insure that they don't lose their hard earned money to your defaulting.

[Bosen]

I hope so.

[Deleted]

Nope. Not even Sanders could get that to happen.

Just going to have to pay your debts so make sure you get the max out of your life and career.