I'm ok if it doesn't happen. I signed up with the agreement that I would pay up.

If one is truly hard up and unable to pay back the loan and needs relief, there are legal and ethical ways to do it. Just off the top of my head: forgive a portion in lieu of some kind of public service; reduce or suspend interest for a period of time; make them dischargeable on a bankruptcy. All of the preceding with a law passed by Congress, not on the say-so of one desiccated old doofus.

You don't want to make them dischargeable on a bankruptcy as everybody would take out all the loans, party all the way through college and then declare bankruptcy.

Universities should guarantee their product by backing the loan. Most have wealthy endowment departments

quote:

Originally posted by Flash-LB:
You don't want to make them dischargeable on a bankruptcy as everybody would take out all the loans, party all the way through college and then declare bankruptcy.

You could limit the amount that is dischargeable. Rather than "give" away $20,000, make them declare BK to get the $20,000 in relief. At least there is some "cost" to get the $20,000.

quote:

Originally posted by SigLaw:

quote:

Originally posted by Flash-LB:
You don't want to make them dischargeable on a bankruptcy as everybody would take out all the loans, party all the way through college and then declare bankruptcy.

You could limit the amount that is dischargeable. Rather than "give" away $20,000, make them declare BK to get the $20,000 in relief. At least there is some "cost" to get the $20,000.

I think they should be dischargeable the same as any other debt. A big part of the issue with student loans is that 100% of the risk is underwritten by John Q. Public. If the lenders had to eat that risk you would see a lot fewer people securing $200k loans for degrees with no chance of ever paying it back.

I kind of like the idea of the schools underwriting the loans for their own programs. College would get a lot more serious (and valuable) in a hurry as schools would have to cut the feel good bs programs that benefit their bottom line but don't have a chance of leading to anything for the students who enroll in them.

Whatever the solution, change does need to happen. As the old saying goes, "if you owe the bank $100,000 you can't pay you have a problem. If you owe the bank $100,000,000 you can't pay the bank has a problem. We're the bank, and there's a whole lot of people out there that are never going to repay those loans.

I'm sorry, but I'm laughing at all of the stupids that applied to get all of the money back that they paid during the pandemic with the hope that it would still be forgiven and now looks like it would not be. I didn't, and I'm still on the hook for about $5400. But I signed up. So now I pay up. And I have another 6 months of no interest because of our dipshit president.

For a doctor or any degree that’s useful to the public at large, I could see giving extensions to pay off the debt. If the degree is in under water basket weaving, tough shit. And, if they can’t repay the debt, then let them perform service such as cleaning toilets for 10 years. I would not put them in jail, they would still cost us money.

One last thing, the federal government should not be handing out money for BS degrees. We have too debt much all ready.

quote:

Originally posted by Marlin Fan:
One last thing, the federal government should not be handing out money for BS degrees. We have too debt much all ready.

The Federal government hands out money for a lot of bullshit things . It's how they buy votes and consolidate power . That's not going to change . This student loan thing is not over .

quote:

Originally posted by Marlin Fan:
One last thing, the federal government should not be handing out money for BS degrees. We have too debt much all ready.

IIRC, the federal govt took over the entire student loan program during the - wait for it - Obama administration.

I graduated from college in 1975, the GI Bill paid my way.

quote:

Originally posted by Marlin Fan:
One last thing, the federal government should not be handing out money for BS degrees. We have too debt much all ready.

What's wrong with a Bachelor of Science degree?

^^^
Thinking that is a bull of a different color.

Some can get a degree in surfing or Harry Potter. To them I say Dipoloshitticus Maximus!