Would you support the following policy on student loans?

[Anonymous]

Anonymous wrote:I got no problems with the proposals.

It doesn't attack the root cause of the problem though - which are costs and costs that keep going up.

Allow student loan debt to be dischargeable in bankruptcy, period. We allow dvery other debt to be discharged in bankruptcy. When more risk is injected into thos whole stupid system, lenders will start lending less and colleges will be forced to control costs and even slash them. But with infinite credit taps open and no risk for lenders because they're sheilded from bankruptcy, this entire charade of never ending price increases continues.

There was a time when education loans could be discharged in bankruptcy and there were so many that the law was changed.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No. Cancel them all. Public education should have been free in the first place.

Almost everyone has an opportunity to go to a public institution, and many are talented enough to get scholarships at certain institutions.

1. Link default rates to universities. Universities with high default rates are out of any government loan programs.
2. Ability to borrow is a function of ability to pay... majors with higher incomes qualify for larger loan balances.
3. Set interest rates close to government cost of borrowing for any public loan programs.

None of the above. Take all the money flowing through the federal student loan program—which currently makes it the 5th largest lender in the US—and invest directly in instructional costs at public institutions, with a requirement for states to match the money and lower tuition and fees dramatically.

No loans for public higher education. Ever. Privates can compete as they will…if they can. A lot won’t be able to.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:No. Cancel them all. Public education should have been free in the first place.

Almost everyone has an opportunity to go to a public institution, and many are talented enough to get scholarships at certain institutions.

1. Link default rates to universities. Universities with high default rates are out of any government loan programs.
2. Ability to borrow is a function of ability to pay... majors with higher incomes qualify for larger loan balances.
3. Set interest rates close to government cost of borrowing for any public loan programs.

None of the above. Take all the money flowing through the federal student loan program—which currently makes it the 5th largest lender in the US—and invest directly in instructional costs at public institutions, with a requirement for states to match the money and lower tuition and fees dramatically.

No loans for public higher education. Ever. Privates can compete as they will…if they can. A lot won’t be able to.

Just keep funneling money to these institutions... they can't get enough. I'm sure this will work.

[Anonymous]

Anonymous wrote:Personally I think student loans, as administered by private banks, are predatory.

This.
And colleges that woo low income students who do not understand the loan burden.

[Anonymous]

Anonymous wrote:

Anonymous wrote:No bank would approve a regular loan of any amount to a student and the US govt. should not approve them.

This exactly.

My 18 yo can't get approved for a loan to buy a new car on his own but can get instantly approved for $40k for a year of school? It shouldn't be that way.

I distinctly remember my college advisor at my fancy private prep school (where I was on full scholarship) telling me that I didn't need to stress about my parents not being able to afford a $30k/year for college because I could get a student loan, nbd. Even when I voiced concern because I knew my parent's credit was so bad that they didn't even have a credit card, she assured me that it didn't matter when it came to student loans and besides, the money I'd make after graduation with my fancy school degree would be more than enough to pay them off in 10 years tops.

I've paid off the amount I borrowed and still owe about $20k because of interest.

Your 18 year old can’t get approved for a $40,000 loan got school. The most they qualify for is $5500 from federal government. In order for them to get a lían for more, you’d have to co-sign.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I got no problems with the proposals.

It doesn't attack the root cause of the problem though - which are costs and costs that keep going up.

Allow student loan debt to be dischargeable in bankruptcy, period. We allow dvery other debt to be discharged in bankruptcy. When more risk is injected into thos whole stupid system, lenders will start lending less and colleges will be forced to control costs and even slash them. But with infinite credit taps open and no risk for lenders because they're sheilded from bankruptcy, this entire charade of never ending price increases continues.

There was a time when education loans could be discharged in bankruptcy and there were so many that the law was changed.

False. I just watched a documentary on the bankruptcy law change for student loans. Before the law was changed, bankruptcy for student loans was in the single digit %.

[Anonymous]

Anonymous wrote:

Anonymous wrote:I got no problems with the proposals.

It doesn't attack the root cause of the problem though - which are costs and costs that keep going up.

Allow student loan debt to be dischargeable in bankruptcy, period. We allow dvery other debt to be discharged in bankruptcy. When more risk is injected into thos whole stupid system, lenders will start lending less and colleges will be forced to control costs and even slash them. But with infinite credit taps open and no risk for lenders because they're sheilded from bankruptcy, this entire charade of never ending price increases continues.

Where is the risk to colleges if they raise prices?

You're telling us you want risks to lenders because of rising prices. Do you also want risks to educational institutions for the same?

Yes. If you inject risk into the system, banks will be much stingier lending massive amounts of money to students. The risk for colleges raising prices is that students will not be able to get enough loans to cover the cost of said college exorbitantly raising their prices. Not enough students means colleges must cut costs to reduce tuition, or go out of business.

The whole reason we have this debacle in the first place is because of govt intervention removing all risk from the equation. Credit taps are open infinitely, which means colleges raise prices to whatever they want since students can get loans. Lenders lend because they have virtually no risk if they make bad loans….they’ll get paid no matter what. It’s a gigantic credit fueled bubble. Inject risk and it pops.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:I got no problems with the proposals.

It doesn't attack the root cause of the problem though - which are costs and costs that keep going up.

Allow student loan debt to be dischargeable in bankruptcy, period. We allow dvery other debt to be discharged in bankruptcy. When more risk is injected into thos whole stupid system, lenders will start lending less and colleges will be forced to control costs and even slash them. But with infinite credit taps open and no risk for lenders because they're sheilded from bankruptcy, this entire charade of never ending price increases continues.

Where is the risk to colleges if they raise prices?

You're telling us you want risks to lenders because of rising prices. Do you also want risks to educational institutions for the same?

Yes. If you inject risk into the system, banks will be much stingier lending massive amounts of money to students. The risk for colleges raising prices is that students will not be able to get enough loans to cover the cost of said college exorbitantly raising their prices. Not enough students means colleges must cut costs to reduce tuition, or go out of business.

The whole reason we have this debacle in the first place is because of govt intervention removing all risk from the equation. Credit taps are open infinitely, which means colleges raise prices to whatever they want since students can get loans. Lenders lend because they have virtually no risk if they make bad loans….they’ll get paid no matter what. It’s a gigantic credit fueled bubble. Inject risk and it pops.

Wholeheartedly agree.