Student loan debt solution: Allow people to declare bankruptcy for non-Federal student loans

JEDI

Lifer
Sep 25, 2001
29,391
2,736
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that would quickly turn off the faucet of unlimited $ for college, which will in turn stop raising tuition at astounding rates year over year.
it will also stop people from taking out $100k+ 3rd party loans for degrees that wont pay nearly that amount in their 1st job. (ie: liberal arts)

Fed student loan amount is capped:
Undergraduates can borrow up to $12,500 annually and $57,500 total in federal student loans.

How does that sound?
 

nickqt

Diamond Member
Jan 15, 2015
7,681
8,060
136
that would quickly turn off the faucet of unlimited $ for college, which will in turn stop raising tuition at astounding rates year over year.
it will also stop people from taking out $100k+ 3rd party loans for degrees that wont pay nearly that amount in their 1st job. (ie: liberal arts)

Fed student loan amount is capped:
Undergraduates can borrow up to $12,500 annually and $57,500 total in federal student loans.

How does that sound?
Cancel every single cent of student loan debt. Go back 10 years and give everyone who has paid off their student loan debt that same amount as a tax cut to be used every year until it's all used up and they "got theirs".

Make all community college free if meeting X Y Z requirements to get in. Require capped tuition at whatever amount/rate to be eligible to receive Federal Student Loans for your "customers" for private schools and state schools, using whatever variable you want. Then work on making a totally 100% free tier of state schools paid for by society, since educated thinkers benefits society, it's just a fucking investment in your own country for fucks sake oh my god how is this a fucking issue in the richest country in the solar system oh my god.
 

sportage

Lifer
Feb 1, 2008
11,492
3,161
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Who was that lady on the financial news shows back in the 90's that gave financial advice to people? Short blond hair, very popular. Well.... she once advised a phone call-in person who was asking what to do about student loan debt. The financial advisor advised to slap as much student loan debt as possible onto credit cards, AND THEN declare bankruptcy. I assume she was saying credit card debt could be written off in a BK where as a BK does not allow student loan debt to be written off. I believe that was the gist of it.
 

JEDI

Lifer
Sep 25, 2001
29,391
2,736
126
Who was that lady on the financial news shows back in the 90's that gave financial advice to people? Short blond hair, very popular.

Well.... she once advised a phone call-in person who was asking what to do about student loan debt. The financial advisor advised to slap as much student loan debt as possible onto credit cards,
AND THEN declare bankruptcy. I assume she was saying credit card debt could be written off in a BK where as a BK does not allow student loan debt to be written off. I believe that was the gist of it.
susie orman.
and thats genius!
 
Nov 8, 2012
20,828
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Seems reasonable.

I agree with making student loans dischargeable - EVEN the federal ones - the problem is that I would only support this if we have tighter restrictions on whom we give loans to.

Simply having a pulse and saying "I want to go to college and my parents are broke" should have zero to do with if loans are eligible or not.

The biggest problem we have is that everyone thinks their child is special and is worthy of college. They aren't. We have to learn to tell kids sorry - you're not meant for college, consider seeking a trade-skill.
 

brycejones

Lifer
Oct 18, 2005
27,577
26,670
136
Seems reasonable.

I agree with making student loans dischargeable - EVEN the federal ones - the problem is that I would only support this if we have tighter restrictions on whom we give loans to.

Simply having a pulse and saying "I want to go to college and my parents are broke" should have zero to do with if loans are eligible or not.

The biggest problem we have is that everyone thinks their child is special and is worthy of college. They aren't. We have to learn to tell kids sorry - you're not meant for college, consider seeking a trade-skill.
The irony of this given your lack of critical thinking skills is just so delicious.
 
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PingSpike

Lifer
Feb 25, 2004
21,747
579
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Who was that lady on the financial news shows back in the 90's that gave financial advice to people? Short blond hair, very popular. Well.... she once advised a phone call-in person who was asking what to do about student loan debt. The financial advisor advised to slap as much student loan debt as possible onto credit cards, AND THEN declare bankruptcy. I assume she was saying credit card debt could be written off in a BK where as a BK does not allow student loan debt to be written off. I believe that was the gist of it.

Seems like you could also use a home equity loan on your house (that you put 0% down on) which should work since the valuations were usually complete BS. Then just stop paying and let it sort itself out. :p
 
Nov 8, 2012
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Seems like you could also use a home equity loan on your house (that you put 0% down on) which should work since the valuations were usually complete BS. Then just stop paying and let it sort itself out. :p

People that have problems with student loan debt probably don't...

1) Have the credit needed to get these types of loans
2) Lack the legal knowledge or basic accounting knowledge to understand and make sure to check every box
3) Have the funds to file for bankruptcy. It isn't free in the slightest.
 

Greenman

Lifer
Oct 15, 1999
20,920
5,543
136
Seems reasonable.

I agree with making student loans dischargeable - EVEN the federal ones - the problem is that I would only support this if we have tighter restrictions on whom we give loans to.

Simply having a pulse and saying "I want to go to college and my parents are broke" should have zero to do with if loans are eligible or not.

The biggest problem we have is that everyone thinks their child is special and is worthy of college. They aren't. We have to learn to tell kids sorry - you're not meant for college, consider seeking a trade-skill.
The restrictions wouldn't be necessary as the banks wouldn't loan a cent to an unemployed student with zero assets. We would then be back to screaming about how only wealthy people could afford collage.
 
Nov 8, 2012
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The restrictions wouldn't be necessary as the banks wouldn't loan a cent to an unemployed student with zero assets. We would then be back to screaming about how only wealthy people could afford collage.

Nope. They would base it on numerous factors - GPA, did they go to community college, SAT scores, what is their major choice, do they have grants/scholarships, etc... If they fail at those, then it falls to cosigning with someone that does have good credit.

Going into college - and especially after doing something like 2 years of the basic courses - and still not knowing what your major is going to be is a huge red flag that person is a complete moron and not worthy of student loans.


If we didn't allow so many to go - costs of tuition would fall like a rock overnight. It's simply supply/demand, with an HUGE over-inflated demand courtesy of giving loans to anyone with a pulse. That doesn't exist anywhere else
 

GodisanAtheist

Diamond Member
Nov 16, 2006
7,138
7,632
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Going into college - and especially after doing something like 2 years of the basic courses - and still not knowing what your major is going to be is a huge red flag that person is a complete moron and not worthy of student loans.

- I was that moron. Well, not so much a moron as lost/confused/overwhelmed. Ended up doing very OK for myself (so far at least).

A lot of what you're saying makes sense, but would really require a comprehensive approach to not only ensure that intelligent people of little means actually manage to get into college and don't have that door shut in their face while simultaneously giving a pathway to a productive career for the folks that aren't cut out for higher ed.

With all said an done, it would be great to see academia really get back to being about academia and less about the lifestyle resort crap (dorms with water parks built into them and other ridiculous stuff) a lot of colleges have turned into on the federally backed dime.
 
Nov 8, 2012
20,828
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With all said an done, it would be great to see academia really get back to being about academia and less about the lifestyle resort crap (dorms with water parks built into them and other ridiculous stuff) a lot of colleges have turned into on the federally backed dime.

It's really quite simple:

 

zinfamous

No Lifer
Jul 12, 2006
111,125
30,076
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Reclaim the $billions++ in taxes + interest that the Trump crime family stole from the American people starting about 3 decades ago, then use it to pay down whatever percentage of national student loan debt that entails...then forgive the rest.

As a Gen Xer that had little-to-no actual student debt, witnessing the kind of debt that then became possible shortly after I was in school (like, 500% greater than what I could have ever possibly seen in the late 90s)....I really am completely deaf to the mewling bullshit from boomers that complain about "responsibility!" when school was generally free for them for decades, while supercharging the system to insure that their children would be saddled with many many lifetimes of debt that never existed for them. fuck them.