Today's retard that we're all supposed to feel sorry for

[Ninjahedge]

Because the bank is not the one at risk.

student loans:
Changes to US laws made it so you can't just walk away. If the bank lends you $40,000 for African Studies, that debt stays with you for life. That means the debt is basically no risk.

I know.

 

[fskimospy]

With government involvement it could be enforced but I'd rather the government just stay out of it. However, I suppose if a graduate doesn't pay the 5% voluntarily the debt could go into a collection status and their wages garnished or assets frozen just like what can happen today with an unpaid debt.

Right. The only thing that it would require would be the disclosure of wage data to the college, which doesn't seem like that big of a deal. I'm not talking about the cops showing up to your door, but that it would be a legally enforceable debt that would be actionable like normal civil debt.

 

[BoberFett]

What is all this about free? The idea that student loans should never be dischargable is an obviously stupid idea.

Everyone accepts that they need to be treated differently due to their availability and lack of a tie to concrete assets, but our current system is not a solution. One of bankruptcy's primary purposes is to allow those who have made poor investments a vehicle by which to divest themselves of them and re-enter the economy as productive citizens. This principle is every bit as valid with student debt as any other.

Perpetual debt slavery is not only is it bad for the student, it's bad for our society.

"Liberals" do frequently argue that education should be free. That or that it should be dischargable through bankruptcy, which essentially means it's free as well. Get through school, declare bankruptcy. Seems like a simple concept.

 

[Ninjahedge]

It isn't.

Thus the ignorance of the term "Bankruptcy".

 

[fskimospy]

"Liberals" do frequently argue that education should be free. That or that it should be dischargable through bankruptcy, which essentially means it's free as well. Get through school, declare bankruptcy. Seems like a simple concept.

There is certainly a good argument for state sponsored higher education, but that's not what we're talking about in this thread.

The discussions about making student loans dischargeable through bankruptcy would not mean that they were free, as free means without cost and bankruptcy has costs. Most importantly though, the discussions about changing the bankruptcy code back to something more like what it was before 2005 has all explicitly involved discussion about how student loans are different than asset backed loans and how they would not be just generally dischargeable without other conditions. That's all been pretty clear throughout the whole thread.

 

[BoberFett]

Do tell. What are the costs of bankruptcy for someone just out of college?

 

[Ninjahedge]

That would be determined by the feasibility of repayment of the person put into debt.

If this law was changed, and not for all existing cases either, you would see a significant shift in the $ willing to be loaned to students in programs with no solid financial future.

Just watch a bit of Suzie Orman (sp) to see some middle-class middle-aged people having problems with finances because they chose student loans over, say, home equity.

Cash is cash. How is it any more fair that people have taken out huge loans on properties that are not worth that anymore, have no documentable worth that can be recovered, can declare bankruptcy?

Bankruptcy is not a GOOJF card. It was intended to CUT LOSSES, not give something for nothing.

 

[fskimospy]

Do tell. What are the costs of bankruptcy for someone just out of college?

While I will answer this, I'm not interested in a discussion on it because there is not a single person in this thread that I know of who is advocating for normal discharge of student debt like regular debt. You seem like you're trying to pick yet another fight and for no good reason that I can understand.

The costs of bankruptcy for someone out of college is a ruined credit rating for seven years. This directly impacts their ability to secure financing for a car, a house, if they want to open a business, credit checks on apartments, and sometimes even employment. That is not 'free' by any commonly understood use of the word.

Now since we've discussed that, can you acknowledge that I have not been advocating for such a situation, but have instead talked about student loan bankruptcy within limits that act to prevent its abuse?

 

[Jeff7]

"And after completing the program, my first job in the culinary field (working on a meal assembly line) paid $10 per hour."

Ah, so he could be included in their "48-100% success rate" for finding employment, in the industry no less.

...none of his CCA credits will transfer if he decides to go back to school.

Seems that there were several ways in which he didn't think this whole thing through.

It's one thing to do something you love, but I'd guess that it can take some of the fun out of it if you end up doing it only so that you can pay off the massive expense incurred to get that far.


Injured on the job though...that certainly doesn't help things.



<-- Public university for me. Some grants, some loans. Got a job in-field, and paid off the loans about 7 years early.

Sister: Private university, fairly expensive, but she also got quite a few scholarships. I think some semesters were damn close to a free ride. She worked for awhile, and is now doing grad school.

 

[ShawnD1]

Do tell. What are the costs of bankruptcy for someone just out of college?

Uh everything?

http://www.usnews.com/usnews/biztech/articles/070227/27creditchecks.htm

Housing rental companies
Prospective employers
Insurers
Cellphone and utility companies

One of my friends a debt collector (yes those people who verbally threaten you) and she said roughly the same thing. The number of people who check your credit history is unbelievable. It affects every part of your life.

Bankruptcy is not a GOOJF card. It was intended to CUT LOSSES, not give something for nothing.

They obviously can't take the information back from you. Maybe they can force you to watch Jersey Shore until the person's brain is as bad as it was before they went to school.

 

[Ninjahedge]

Snooki would be mad.....