Forgiving student loans seems dumb

[Iwassoclose]

Forgiving student loans seems dumb because its treating the symptom and not the actual problem of the cost of education. Will they just reset the student debt and the now new incoming students get charged the same or even more because now the schools know that they can get away from charging people exorbitant amounts of money.

Its basically a I get mine and the future generations get saddled with debt. Its like the minneials complaining about boomers but have no problems doing the same to future generations at a different level.

Should student debt be forgiven in your opinion? And how much of that answer is tied to your own situation?

[Lancaster of Wessex]

OK, so what are we to discuss? Are you going to make a point to debate? You've given your opinion, but need to clarify what you want people to discuss (which is obvious, the forgiving of student debt), but still, gotta state something and ask questions of others. ^^

[Nakena]

Debt and interest repayment should be respited until the Students in question have gotten a proper income/job to actually repay it. Which, given that they did visit University before and stuff, shouldn be really a problem.

See? problem fixed.

[Cannot think of a name]

Student debt relief is not the only part of anyone's plan, they usually include measures to prevent further debt.

[New haven america]

Letting people take out a mortgage worth of debt to earn a bachelors degree only to end up as waiters who can't support the economy is also dumb.

[Vetalia]

The solution is simple:

1. End all guarantees for student debt, the lender is always on the hook for losses if the borrower declares bankruptcy whether the government or private.
2. Make student loan debt dischargable in bankruptcy just like any other debt

If we do these two things, this entire fiasco will resolve itself within a few years.

[Great Minarchistan]

Letting people take out a mortgage worth of debt to earn a bachelors degree only to end up as waiters who can't support the economy is also dumb.

yes because student loans clearly go for the typical range of 250-350k dollars

[Great Minarchistan]

The solution is simple:

1. End all guarantees for student debt, the lender is always on the hook for losses if the borrower declares bankruptcy whether the government or private.
2. Make student loan debt dischargable in bankruptcy just like any other debt

If we do these two things, this entire fiasco will resolve itself within a few years.

>taking away loan guarantees
>"mmm yes thatll do to solve the issue"
you mean that's a perfect recipe to shoot up the interest rate over said debts lmao

[Nakena]

The solution is simple:

1. End all guarantees for student debt, the lender is always on the hook for losses if the borrower declares bankruptcy whether the government or private.
2. Make student loan debt dischargable in bankruptcy just like any other debt

If we do these two things, this entire fiasco will resolve itself within a few years.

>taking away loan guarantees
>"mmm yes thatll do to solve the issue"
you mean that's a perfect recipe to shoot up the interest rate over said debts lmao

Hence my idea is much better.

[Great Minarchistan]

>taking away loan guarantees
>"mmm yes thatll do to solve the issue"
you mean that's a perfect recipe to shoot up the interest rate over said debts lmao

Hence my idea is much better.

student loans are rather flexible with repayment schedules, you can delay them by up to six months after graduation iirc, which solves the issue for the vast majority of those who've just left college

[Nakena]

Hence my idea is much better.

student loans are rather flexible with repayment schedules, you can delay them by up to six months after graduation iirc, which solves the issue for the vast majority of those who've just left college

I would delayment increase even, up to the point where the college graduate gets his proper income. Of course the actual sum of payback would then be even bigger in the long run.

If that isnt a win win i dont know what.

[Sycar]

OK, so what are we to discuss? Are you going to make a point to debate? You've given your opinion, but need to clarify what you want people to discuss (which is obvious, the forgiving of student debt), but still, gotta state something and ask questions of others. ^^

Can we just take a moment to realize that this nation is 23 days younger than me
EDIT: like me as a person, not my nation

[Vetalia]

The solution is simple:

1. End all guarantees for student debt, the lender is always on the hook for losses if the borrower declares bankruptcy whether the government or private.
2. Make student loan debt dischargable in bankruptcy just like any other debt

If we do these two things, this entire fiasco will resolve itself within a few years.

>taking away loan guarantees
>"mmm yes thatll do to solve the issue"
you mean that's a perfect recipe to shoot up the interest rate over said debts lmao

Precisely, the interest rate will match the risk involved with the loan and the lenders will be on the hook for any losses incurred via bankruptcy. This was the way it worked in years past before student loan debt was guaranteed by the government and the loans were deemed to to be protected under bankruptcy filings, forcing the borrowers to repay no matter what. Not surprisingly, tuition rates and student debt exploded after these market-based factors were removed.

[Great Minarchistan]

student loans are rather flexible with repayment schedules, you can delay them by up to six months after graduation iirc, which solves the issue for the vast majority of those who've just left college

I would delayment increase even, up to the point where the college graduate gets his proper income. Of course the actual sum of payback would then be even bigger in the long run.

If that isnt a win win i dont know what.

if you can't get a job within six months of jobseeking as a college undergrad then sorry, you're either looking at the wrong place or you won't manage to pay back your loan, ever

[Vetalia]

>taking away loan guarantees
>"mmm yes thatll do to solve the issue"
you mean that's a perfect recipe to shoot up the interest rate over said debts lmao

Hence my idea is much better.

The problem is, your idea doesn't correct the perverse incentive at the root of the problem, mine does. Yours is basically the status quo in the US.

[Nakena]

I would delayment increase even, up to the point where the college graduate gets his proper income. Of course the actual sum of payback would then be even bigger in the long run.

If that isnt a win win i dont know what.

if you can't get a job within six months of jobseeking as a college undergrad then sorry, you're either looking at the wrong place or you won't manage to pay back your loan, ever

Is there any statistic on how long they usually need to get a job?

Hence my idea is much better.

The problem is, your idea doesn't correct the perverse incentive at the root of the problem, mine does. Yours is basically the status quo in the US.

I am much more flexible when it comes to such economical perversions though.

[Great Minarchistan]

Precisely, the interest rate will match the risk involved with the loan and the lenders will be on the hook for any losses incurred via bankruptcy. This was the way it worked in years past before student loan debt was guaranteed by the government and the loans were deemed to to be protected under bankruptcy filings, forcing the borrowers to repay no matter what. Not surprisingly, tuition rates and student debt exploded after these market-based factors were removed.

tuition inflation has been creeping above general inflation for a long time before govt guarantee of loans was even a thing, feel free to blame that either on undersupply of vacancies at top unis or on baumol's cost disease

[Vetalia]

Precisely, the interest rate will match the risk involved with the loan and the lenders will be on the hook for any losses incurred via bankruptcy. This was the way it worked in years past before student loan debt was guaranteed by the government and the loans were deemed to to be protected under bankruptcy filings, forcing the borrowers to repay no matter what. Not surprisingly, tuition rates and student debt exploded after these market-based factors were removed.

tuition inflation has been creeping above general inflation for a long time before govt guarantee of loans was even a thing, feel free to blame that either on undersupply of vacancies at top unis or on baumol's cost disease

This is not just tuition inflation, it is a byproduct of a fucked up system that has degenerated to a staggering degree in the past 10 years.

https://fred.stlouisfed.org/series/TOTALGOV
https://fred.stlouisfed.org/series/SLOAS

[Saiwania]

Letting people take out a mortgage worth of debt to earn a bachelors degree only to end up as waiters who can't support the economy is also dumb.

My theory is that there are winners who can benefit from college and losers who can't benefit from college even if they went and earned that degree. I happened to be a loser, which means the path that was open to me before even going to college is the only one left, unless I can figure out something else at a future date.

[Nakena]

>taking away loan guarantees
>"mmm yes thatll do to solve the issue"
you mean that's a perfect recipe to shoot up the interest rate over said debts lmao

Precisely, the interest rate will match the risk involved with the loan and the lenders will be on the hook for any losses incurred via bankruptcy. This was the way it worked in years past before student loan debt was guaranteed by the government and the loans were deemed to to be protected under bankruptcy filings, forcing the borrowers to repay no matter what. Not surprisingly, tuition rates and student debt exploded after these market-based factors were removed.

Hold on.

I agree with you here.

That forces stuff and makes it all worse. If borrowers end up in a situation where they cant repay then well... that happens. Every bank giving loans has that risk. As long as a sufficient amount of borrowers repay it though business should be running fine.

[The Supreme Magnificent High Swaglord]

I mean, my older brother and I don't have to worry about student loan debt, given that my family (my father, in particular) can easily afford the costs of our university education... I'm still perturbed by my older brother choosing to pursue a communications major; he should have been like me and pursued a respectable profession in either medicine, law, or in my case engineering. Ah, but I've been sidetracked. The point is that for once I've no strong opinions on this.

[Scomagia]

Precisely, the interest rate will match the risk involved with the loan and the lenders will be on the hook for any losses incurred via bankruptcy. This was the way it worked in years past before student loan debt was guaranteed by the government and the loans were deemed to to be protected under bankruptcy filings, forcing the borrowers to repay no matter what. Not surprisingly, tuition rates and student debt exploded after these market-based factors were removed.

Hold on.

I agree with you here.

That forces stuff and makes it all worse. If borrowers end up in a situation where they cant repay then well... that happens. Every bank giving loans has that risk. As long as a sufficient amount of borrowers repay it though business should be running fine.

Just like any other debt. I honestly never understood why student loans have been treated differently than other debts. It makes no sense for them to follow you forever, even through bankruptcy. No other debt works that way, to my knowledge.

[Great Minarchistan]

tuition inflation has been creeping above general inflation for a long time before govt guarantee of loans was even a thing, feel free to blame that either on undersupply of vacancies at top unis or on baumol's cost disease

This is not just tuition inflation, it is a byproduct of a fucked up system that has degenerated to a staggering degree in the past 10 years.

https://fred.stlouisfed.org/series/TOTALGOV
https://fred.stlouisfed.org/series/SLOAS

"mmm yes look at those scary nominal increases, lets not take into account (a) inflation (b) pay rises (c) interest rates (d) number of students over time"

[Scomagia]

I mean, my older brother and I don't have to worry about student loan debt, given that my family (my father, in particular) can easily afford the costs of our university education... I'm still perturbed by my older brother choosing to pursue a communications major; he should have been like me and pursued a respectable profession in either medicine, law, or in my case engineering. Ah, but I've been sidetracked. The point is that for once I've no strong opinions on this.

Ideally your family will refuse to pay the entirety of your university education.

[Nouveau Quebecois]

Forgiving is just dumb in general. I don't forgive, I don't forget, I cut myself on my own edge.