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

[Total Crica]

if the students don't pay the loan back, we tax payers will have to.

Employ the students while they learn and have them work it off.

They will have to work while they are student anyway, unless mommy and daddy pay their way through.

Stop hiring anyone but enrolled students (until all menial positions are filled) to take care of things in colleges and universities and places that help colleges and universities.

Then allot them credit points they can spend on credits as they work at the college and universities and places that help colleges and universities.

All of these places need upkeep, have the students upkeep them while they study in their chosen fields.

They will have skin in the game from day one and will care more about their place of study instead of partying away their time there.

[W1sp]

I mean we're the worst country in the west but everybody still wants to come here.

I don't want to.

[Zan15]

Or...stop borrowing money you cannot afford to borrow. It was too expensive before you signed on the dotted line.

welp that would just about kill half the economy if everyone stopped borrowing money they could not afford to borrow..including the us govt

[zebreck]

I'm not sure why everyone is pretending like the money HAS to get paid back by someone. It's the financial institution's risk to lend money. That's what interest is supposed to cover, among profit and operating costs. Not getting paid back is literally the reason not everyone is a bank all the time. If you make a bad loan? tough shit. Eat the sunk cost like a fucking capitalist and stop crying for taxpayer money. You made too many bad loans and now you're out of business? Good. Now there's more room for people who don't suck at providing financial services. That means it's harder to get a loan? Good. More plumbers and tradespeople, just like our economy actually needs. There is absolutely no moral imperative to have laws protecting financial services from their one, singular point of actual risk. The entire thing is upside down and ridiculous.

[breadisfunny]

Or...stop borrowing money you cannot afford to borrow. It was too expensive before you signed on the dotted line.

oh yes let's perpetuate job and income inequality even MORE. that sounds like a brilliant idea!

[Shadowferal]

Or...stop borrowing money you cannot afford to borrow. It was too expensive before you signed on the dotted line.

The US Government should do the same...instead of giving out trillions to bailouts and adding to the problem..

[Kaleredar]

I agree with your basic point, but also when to point out that when we say, "the government" what we really mean is, "should we take money from income earners".

Well seeing as state schools already do that sort of thing to do everything from buy new football uniforms to pay the guy to trim the hedges by the dining commons... why not?

[Elegiac]

Or...stop borrowing money you cannot afford to borrow. It was too expensive before you signed on the dotted line.

Tertiary accreditation is mandatory to succeed in the workforce. Stop living in the 80s.

[GreenJesus]

Sorry, only rich people get bailouts.

Unfortunately there was no other way, or the entire economy would collapse. but the ones that did get bailed out had collateral/assets and were able to pay it back. Some banks didn't have tangible assets and weren't bailed out and were left to die.

http://www.politifact.com/new-hampsh...-federal-bail/

[Deleted]

So you don't just settle for having the worst health care system in the world, now it's also the student debt that has to be destroyed?

Fun fact, the US have one of the worst educational systems in the world (not talking about quality).
Student debt needs to be curtailed, the state should give less aid (loans) because that is one of the reasons for the spiraling costs of education.

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Tertiary accreditation is mandatory to succeed in the workforce. Stop living in the 80s.

Is not education.
There is an ongoing inflation in degrees forcing people to spend more time being 'educated' to do jobs that do not require said education.

[Wildtree]

Fun fact, the US have one of the worst educational systems in the world (not talking about quality).

No, you got that wrong.
The system is one of the worst in the developed world. The quality would be the absolute best.
The US has the most top 20, 50, 100 universities of any country in the world.
It's the system that fails miserably. It hasn't always been that way. The commercialization of education started in the 1970s.

[paralleluniverse]

Student loans can't be discharged with default.

Trump showing his cruelty again and fucking over poor people? Nothing new.

[Wildtree]

Student loans can't be discharged with default.

Trump showing his cruelty again and fucking over poor people? Nothing new.

He promised to drain the swamp.. And he delivers on his promise.
All a matter of understanding.
If you substitute money with water, you get the perfect picture.
A swamp usually has only a limited amount of water. Much like the population only has a fraction of the money...
The swamp is the population, the water is the money..

[Spectral]

Well seeing as state schools already do that sort of thing to do everything from buy new football uniforms to pay the guy to trim the hedges by the dining commons... why not?

We can start by suspending my school's athletic programs, which cost millions more than they bring in.

In both cases, I'm mostly fine with this. While I personally love sports, I think it's pretty hard to figure out why taxpayers should be on the hook for expensive stadiums and multi-million dollar coaches.

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Unfortunately there was no other way, or the entire economy would collapse. but the ones that did get bailed out had collateral/assets and were able to pay it back. Some banks didn't have tangible assets and weren't bailed out and were left to die.

http://www.politifact.com/new-hampsh...-federal-bail/

Personally, my own objection is not with the bailouts per se, but the lack of punishment for the people that caused. OK, throw trillions at the banks to prevent economic collapse, but go ahead and find some plausible legal reason to jail the assholes that were in charge. See Iceland for a decent model of how to do that on a smaller scale and expand accordingly.

[Jinpachi]

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.

[Spectral]

Fun fact, the US have one of the worst educational systems in the world (not talking about quality).
Student debt needs to be curtailed, the state should give less aid (loans) because that is one of the reasons for the spiraling costs of education.

When you say "worst", are you referring to cost effectiveness? My reply would be that one has to determine what the goal is for "worst" to be meaningful. I'm skeptical of the idea that Americans are even trying to pull off getting decent bang for their buck in the educational world. Instead, commitment to pouring endless and ever-increasing sums of money into education acts as a form of social signaling of how committed one is to education. Pouring money into the most hopeless school districts (~$20K per student per year in Baltimore, for example) signals an extreme commitment to egalitarian principles.

Put another way, education spending isn't about education.

[Barnabas]

well looks like i'll have to put my phd in basket crafting on hold until I can save up enough money to pay for the courses needed. Cost effectiveness needs to be a concern before pursuing higher education. Why people get useless degrees that they will never be able to get return on after taking on loans is concerning. Maybe the solution is that banks should just deny people these types of loans if they don't think you'll ever be able to pay it off?

[Spectral]

That sounds pretty dumb.
The financing of the education for the next generation shouldn't be privatised.
In my country the government takes care of it.
The situation below is how it is for me, though I've heard new students have to pay back everything, the only gift is the public transportation.



For our government it's an investment.
They don't get a profit by cashing in on the interest.
They get a profit by making sure they have a well-educated country.
It's why we are one of the richest countries in the world despite having so few natural resources.

I hate to break it you, but this brilliant investment strategy still hasn't managed to pull the Netherlands up to being particularly close to the United States from a wealth and productivity perspective. Depending on your preferred measure, per capita PPP is ~$6500-$8K per person higher in the United States. To put that in perspective, it's about as large as the gap from Netherlands down to France. Put another way, Dutch per capita GDP is on par with well below middle of the pack American states like Oklahoma and Tennessee.

For all that, Netherlands is still a very nice place and very productive by European standards, but let's not get it twisted, it's not remotely competitive with top American states like Massachusetts and Minnesota.

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Tertiary accreditation is mandatory to succeed in the workforce. Stop living in the 80s.

i think this points more to degree inflation than it does to actual workforce requirements. Companies require degrees because we've arrived at the point where it signals that you're a total dipshit if you can't even be bothered to get a degree. There are obviously technical position where the skills acquired are legitimately necessary, but most jobs don't really have all that high of technical requirements - the value of the degree is almost entirely the intelligence and conscientiousness that's signaled by having a degree and a decent GPA.

For a much better treatment than I'm capable of, I recommend this SSC post, Against Tulip Subsidies.

[Spectral]

But that's my point.
The US has resources.
We have.. We have water that we first have to turn into land before we can build a house.

Alright man, whatever makes you feel better. Clearly that's why Massachusetts is 50% more productive - resources

[Barnabas]

I hate to break it you, but this brilliant investment strategy still hasn't managed to pull the Netherlands up to being particularly close to the United States from a wealth and productivity perspective. Depending on your preferred measure, per capita PPP is ~$6500-$8K per person higher in the United States. To put that in perspective, it's about as large as the gap from Netherlands down to France. Put another way, Dutch per capita GDP is on par with well below middle of the pack American states like Oklahoma and Tennessee.

For all that, Netherlands is still a very nice place and very productive by European standards, but let's not get it twisted, it's not remotely competitive with top American states like Massachusetts and Minnesota.

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i think this points more to degree inflation than it does to actual workforce requirements. Companies require degrees because we've arrived at the point where it signals that you're a total dipshit if you can't even be bothered to get a degree. There are obviously technical position where the skills acquired are legitimately necessary, but most jobs don't really have all that high of technical requirements - the value of the degree is almost entirely the intelligence and conscientiousness that's signaled by having a degree and a decent GPA.

For a much better treatment than I'm capable of, I recommend this SSC post, Against Tulip Subsidies.

The problem is the education lobby thinks whoever wrote that is completely wrong because their profits are more important then cutting the medical program down by 3-4 years because it works in ireland.