• Guest, The rules for the P & N subforum have been updated to prohibit "ad hominem" or personal attacks against other posters. See the full details in the post "Politics and News Rules & Guidelines."
  • Community Question: What makes a good motherboard?

Student Loan Fairness Act (HR 1330)

Page 3 - Seeking answers? Join the AnandTech community: where nearly half-a-million members share solutions and discuss the latest tech.

TallBill

Lifer
Apr 29, 2001
46,057
61
91
Thank you. You have the respect of everyone that worked hard to put themselves through school and paid off their debts with pride and honor.
Of busted their ass in school or developed a talent beforehand to obtain scholarships. Or found employment that had some sort of college tuition assistance. Or took community college night classes and worked two jobs.

There are a million ways to make it in this world, and a free ride isn't one of them.
 

Absolution75

Senior member
Dec 3, 2007
981
2
71
As someone with a ton of student debt...

This is a bad idea.


There are a ton of decent state schools that offer a good education at a reasonable price. There are also private schools that are a ton more expensive for maybe something a little bit better.

I've done both.
 
Last edited:

Fenixgoon

Lifer
Jun 30, 2003
27,109
1,884
126
I will have nearly $150k in student debt when I graduate (grad school) in a few weeks


....and I am not going to sign this.

You want an education? Great, pick a useful area of study that will pay you for it. No one wants to pay you for your degree in circle j****g.
props to you :thumbsup: sorry you have 150k in debt though :( get someone to pay for that!!
 

Triumph

Lifer
Oct 9, 1999
15,032
13
81
I'm against proposals that increase demand for college educations while not doing anything to increase the supply of college admission slots. Supply and demand, anyone?
 

Genx87

Lifer
Apr 8, 2002
41,083
490
126
Since these are government backed loans that means when they aren't paid for the government, ie the tax payers are responsible for its payment.

Exactly why wouldn't universities then start charging more for their services? Sounds a whole lot like privatized profits and socialized losses to me.

I don't see it fixing a problem but instead making the problem worse.


How am I wrong?
You arent wrong and this imo would make the problems worse.
 

pcgeek11

Lifer
Jun 12, 2005
17,543
1,758
126

I know. Why don't they pay back the loans as they agreed to do in the contract. Wow.


What we need to do is to not allow stupid kids to go into debt for 100K for an arts degree or some other worthless piece of paper degree etc... If they don't want to pay the loan then don't sign the paper.

It is called personal responsibility, Simple.
 
Last edited:

Exterous

Super Moderator
Jun 20, 2006
18,882
1,792
126
For the people who say 'you signed the contract/agreed to it you pay it back' I have a question for you: How'd that work out for everyone with the housing bubble? Generally I am not for assistance for dumb shit personal decisions but at some point if there is too little societal responsibility from students, parents schools and banks, everyone suffers.

That said this isn't going to fix the root causes of the issue. What needs to happen is re-associating some of the loan risk with the lender. Right now there are few controls because the lenders don't give a shit who they lend to. Why would they? It can't be discharged in bankruptcy so they'll get their money eventually. If we make the banks take on risk I'll bet lending requirements will get tougher.

Another idea might be to limit federal/state assistance to universities who increase tuition too quickly. (I know the state of Michigan provides money to universities but I am unsure if other states do this) If they want to be a world class university let them do it by merit and attracting customers based on quality - not government funding. (This wouldn't work by itself as the universities just increase student tuition because the students can get a ton of free money from the banks. Turn off the free money spigot and the universities start having to think more seriously about tuition increases)

We also need to increase the awareness of the youth going into college. $100,000 in loans doesn't sound like that much when you think your salary is going to be $50,000 a year but have never really had to deal with taxes, bills, healthcare etc and have had no education about compounding interest

As a side note - the interest rate is setup to double to 6.8% on July 1st for many loans
 
Last edited:

Darwin333

Lifer
Dec 11, 2006
19,947
2,322
126
You borrow it, you pay it back. Don't like it? Don't borrow the money in the first place.

One thing to look at is why the cost of college education is so damn high? Why? What can be done to bring the costs down?
The answer to that question is absurdly easy.

Student loans are guaranteed by the government and are one of the only types of debt that is not dischargeable in bankruptcy. In essence, you can borrow an unlimited amount of money from the government to get whatever degree you want regardless of your ability to pay back the money in the future. Your ability to pay off the loan is quite literally not a consideration in the process because of the above. When the .gov is writing blank checks to a fuckload of people the price is obviously going to skyrocket. Its not all just greedy schools and shit either.

Want to see the cost of schooling come way down real quick? Make student loans just like any other debt in concern to bankruptcy laws and let the market handle it. The .gov can still guarantee ultra low interest rates or something but we need a system that doesn't allow an 18 year old kid to almost effortlessly borrow hundreds of thousands of dollars to obtain a degree that will very likely get him a $30k/year job.
 

Darwin333

Lifer
Dec 11, 2006
19,947
2,322
126

I know. Why don't they pay back the loans as they agreed to do in the contract. Wow.


What we need to do is to not allow stupid kids to go into debt for 100K for an arts degree or some other worthless piece of paper degree etc... If they don't want to pay the loan then don't sign the paper.

It is called personal responsibility, Simple.
Why should there be this "personal responsibility" for only student loans? Why are car loans, home loans, home equity loans, revolving credit loans, personal loans, etc... so different and exempt from this "personal responsibility" that exists with student loans?
 
Apr 27, 2012
10,086
58
86
The government should stop these loans and get out of the way. They only make education more expensive just look at all the money universities waste since they know its taxpayer funded.
 

child of wonder

Diamond Member
Aug 31, 2006
8,310
175
106
I'd really like to see a college open that was really interested in making an investment in its students. Tighten up admission standards then offer only financially viable degrees and free tuition and books while attending school. Once you graduate you give a percentage of your gross income back to the school for the next 10 years.

This wouldn't be a government mandated thing, just something the school does on its own.

The entire paradigm of college education would be different with a system like this since the college has a vested interest in making sure the student selects a worthwhile degree, attains employment, and earns a lot of money. The school would offer resume writing, interviewing, and negotiating workshops, REAL job placement assistance (not the limp dick garbage colleges offer today), and so on because they want the student to graduate and earn a good living since it increases their return.
 

SheHateMe

Diamond Member
Jul 21, 2012
7,251
20
81
The government should stop these loans and get out of the way. They only make education more expensive just look at all the money universities waste since they know its taxpayer funded.
And how do you suppose Universities operate? Where will the research funding come from? How do we fund University programs?


My University was the first land grant college in the United States. You need to google what that means.
 

nageov3t

Lifer
Feb 18, 2004
42,826
82
91
Why should there be this "personal responsibility" for only student loans? Why are car loans, home loans, home equity loans, revolving credit loans, personal loans, etc... so different and exempt from this "personal responsibility" that exists with student loans?
abuse of the system, mostly.

I can't think of another scenario in which a teenager could rack up $100,000 in debt, declare bankruptcy the day after graduation, and then live with their parents while working until their credit rebounds.

there's no way that same teenager would get approved for a $100,000 loan to buy a car, or open a credit card with a limit that large.
 

Greenman

Lifer
Oct 15, 1999
16,631
2,154
126
If this passes, I'm going to stop working, get a Phd in women's volleyball, then retire.

I'm tired of contributing to a system that rewards dependence, dishonesty, stupidity, and wastefulness.
 

Triumph

Lifer
Oct 9, 1999
15,032
13
81
And how do you suppose Universities operate? Where will the research funding come from? How do we fund University programs?


My University was the first land grant college in the United States. You need to google what that means.
Land grant universities are fine. Government involved in higher education is fine. The recent splurge in tuition rates is not fine, it has outpaced inflation and it's all due to cheap loans, high demand, and limited supply. You really can't argue that the universities need this extra money since they did just fine for hundreds of years with the operating budgets that they had. Since many universities are "not for profit," they are inclined to spend ALL of the money that they have. New buildings, dorms, laboratories, services, etc. There's no share holders that the extra profit is divested to. What happens now, is that the universities say, "Look at our operating budget from last year, we need all of this money in order to keep the lights on!"
 

TheVrolok

Lifer
Dec 11, 2000
23,253
2,517
136
abuse of the system, mostly.

I can't think of another scenario in which a teenager could rack up $100,000 in debt, declare bankruptcy the day after graduation, and then live with their parents while working until their credit rebounds.

there's no way that same teenager would get approved for a $100,000 loan to buy a car, or open a credit card with a limit that large.
Well, except that student loans are not dischargeable in bankruptcy (except in rare circumstances). So I suppose you can't think of any scenario. :p
 

BoomerD

No Lifer
Feb 26, 2006
55,436
3,849
126
First we need to cap loan amounts to 10% of a person's earning potential over a 10 year period. That way doctors can take big fat loans and so could lawyers while people doing basket weaving or social work can only take smaller loans and go to more affordable schools. Going to an Ivy League school to be a social worker isn't required.

Capping the loan amounts would also force schools to lower tuition prices if they want to keep kids at the school.

It's just like the rental places around military bases, they are all usually set to the amount of the BAH service members receive each month to pay rent. Right now schools are setting their tuition rates through the roof because the faucet on loans is never ending.

Yeah...following the link on the OP's link...

This legislation would establish a new “10-10” standard for student loan repayment as the new standard repayment plan. In the “10-10” plan, an individual would be required to make ten years of payments at 10% of their discretionary income, after which, their remaining federal student loan debt would be forgiven.
Fuck that. Let's just do away with the programs.
Want to get a college education? Get a fucking job and pay for it.
 

TheVrolok

Lifer
Dec 11, 2000
23,253
2,517
136
Curious if people feel the same way regarding graduate school loans as they do undergraduate loans.
 

dfuze

Lifer
Feb 15, 2006
11,953
0
71
Why should there be this "personal responsibility" for only student loans? Why are car loans, home loans, home equity loans, revolving credit loans, personal loans, etc... so different and exempt from this "personal responsibility" that exists with student loans?
Probably because the other examples are property and can be siezed if not paid for and resold by the lender to recoup at least some of their costs.
 

Exterous

Super Moderator
Jun 20, 2006
18,882
1,792
126
Probably because the other examples are property and can be siezed if not paid for and resold by the lender to recoup at least some of their costs.
Is this an argument against student loan bankruptcy discharge in some cases? If so - there are cases where the property can't be siezed and there are plenty of circumstances where wages are garnished to pay for debts/obligations irrespective of property seizing so I don't see why that wouldn't be applicable here as well
 

OverVolt

Lifer
Aug 31, 2002
14,285
87
86
You should have named it the student loan equality act. Gotta get with the liberal lingo man.
 

OverVolt

Lifer
Aug 31, 2002
14,285
87
86
Sallie Mae probably has something to say about this.

Additionally you realize by making people in default "deferred" instead you allowed Sallie Mae to make bigger, and bigger, and bigger student loans. Perpetuating the college bubble even worse just so a couple arts majors don't default.
 

nehalem256

Lifer
Apr 13, 2012
15,670
6
0
Why should there be this "personal responsibility" for only student loans? Why are car loans, home loans, home equity loans, revolving credit loans, personal loans, etc... so different and exempt from this "personal responsibility" that exists with student loans?
car loans, home loans, home equity loans: Are all examples of collateralized loans.

revolving credit loans, personal loans: Why don't you compare the interest rate of your average credit card to the rate on student loans?

In essence a student is trading the right to discharge a debt for a lower interest rate.
 

Zargon

Lifer
Nov 3, 2009
12,245
2
76
Why should there be this "personal responsibility" for only student loans? Why are car loans, home loans, home equity loans, revolving credit loans, personal loans, etc... so different and exempt from this "personal responsibility" that exists with student loans?
they shouldnt be....




Curious if people feel the same way regarding graduate school loans as they do undergraduate loans.

grad school loans are an even worse idea.
 

ASK THE COMMUNITY