by Iwassoclose » Thu Aug 08, 2019 2:53 pm
by Lancaster of Wessex » Thu Aug 08, 2019 2:56 pm
by Nakena » Thu Aug 08, 2019 2:59 pm
by Cannot think of a name » Thu Aug 08, 2019 3:40 pm
by New haven america » Thu Aug 08, 2019 3:58 pm
by Vetalia » Thu Aug 08, 2019 4:41 pm
by Great Minarchistan » Thu Aug 08, 2019 6:33 pm
New haven america wrote: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.
by Great Minarchistan » Thu Aug 08, 2019 6:34 pm
Vetalia wrote: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.
by Nakena » Thu Aug 08, 2019 6:35 pm
Great Minarchistan wrote:Vetalia wrote: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
by Great Minarchistan » Thu Aug 08, 2019 6:36 pm
by Nakena » Thu Aug 08, 2019 6:38 pm
by Sycar » Thu Aug 08, 2019 6:39 pm
Lancaster of Wessex wrote: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. ^^
by Vetalia » Thu Aug 08, 2019 6:41 pm
Great Minarchistan wrote:Vetalia wrote: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
by Great Minarchistan » Thu Aug 08, 2019 6:42 pm
Nakena wrote:Great Minarchistan wrote: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.
by Vetalia » Thu Aug 08, 2019 6:43 pm
by Nakena » Thu Aug 08, 2019 6:43 pm
Great Minarchistan wrote:Nakena wrote:
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
by Great Minarchistan » Thu Aug 08, 2019 6:43 pm
Vetalia wrote: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.
by Vetalia » Thu Aug 08, 2019 6:46 pm
Great Minarchistan wrote:Vetalia wrote: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
by Saiwania » Thu Aug 08, 2019 6:47 pm
New haven america wrote: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.
by Nakena » Thu Aug 08, 2019 6:51 pm
Vetalia wrote:Great Minarchistan wrote:>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.
by The Supreme Magnificent High Swaglord » Thu Aug 08, 2019 6:55 pm
by Scomagia » Thu Aug 08, 2019 6:56 pm
Nakena wrote:Vetalia wrote:
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.
by Great Minarchistan » Thu Aug 08, 2019 6:57 pm
Vetalia wrote:Great Minarchistan wrote: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
by Scomagia » Thu Aug 08, 2019 6:57 pm
The Supreme Magnificent High Swaglord wrote: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.
by Nouveau Quebecois » Thu Aug 08, 2019 6:58 pm
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