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Old 01-03-2012, 10:24 PM
 
5,699 posts, read 8,774,588 times
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Quote:
Originally Posted by snofarmer View Post
Once upon a time it was cool not to pay your student loans.
We now have stiffer regulations because of it.

So tuition shot up, Would you agree everything has gone up in price?
Have any of your costs gone up, i bet they have?


So you want to eat your cake?
You will still have to work.

Ways to get your or some of it paid off for you...

I'm using my GI bill now... No need to tell me.

As for Tuition shooting up.

It's gone up HUNDREDS of % more than everything else.

COMPLETELY DISPROPORTIONATE to the increases in costs of everything ELSE...

As to your 'it was cool' comment... False.
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Old 01-04-2012, 08:01 AM
 
Location: Northern MN
3,869 posts, read 13,419,555 times
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Quote:
Originally Posted by Themanwithnoname View Post

As to your 'it was cool' comment... False.
I don't think you were alive then?
This was back in the 60's and early 70's.

The hippys thought it was "cool" not to pay it back.
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Old 01-04-2012, 10:02 AM
 
54,262 posts, read 43,390,321 times
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Quote:
Originally Posted by Brasscatcher84 View Post
Excellent question!!

If you had asked two years ago, I would have said no. When private lenders were making a majority of student loans, allowing them to be discharged with a bankruptcy would have made them too risky for most lenders. For a graduate with a brand new degree and no work history, declaring bankruptcy right out of school to get rid of the debt and then waiting the seven years to get it off their credit history would have been a good deal. Most lenders would have stayed away, and qualifying for a student loan would have been pretty near impossible.

Now that the government is doing most (or all?) of the student lending, I say yes, let it be discharged with a bankruptcy. If politicians are going to use taxpayer money to buy votes anyway, they may as well spend it on something that will make Americans more competitive in the 21st century.
Sweet, I will start moving all savings out of my kids names and then set them up in a private residence.

Then they will be *poor* and will get tons of student loans and what not and then default on them down the road.

After that I will just co-sign all their stuff for them and move the money back to them via 10k annual cash gifts and whatnot.

Thanks for your support!
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Old 01-04-2012, 10:06 AM
 
5,699 posts, read 8,774,588 times
Reputation: 7890
Quote:
Originally Posted by snofarmer View Post
I don't think you were alive then?
This was back in the 60's and early 70's.

The hippys thought it was "cool" not to pay it back.
Your specific statement was:
Quote:
Originally Posted by snofarmer
Once upon a time it was cool not to pay your student loans.
We now have stiffer regulations because of it.
Prior to the change in legislation... the rate of default on student loans were very low.

What Happened 20 years before is not pertanant... that's like saying that there was a drought 20 years ago and the availability of oranges was reduced... it's been fine the last several years, no trees dead etc... but because of that we are going to be increasing the cost of oranges.

It don't work that way.
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Old 01-04-2012, 11:17 AM
 
Location: Seattle
1,368 posts, read 2,975,825 times
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College costs are out of control due to an unsustainable credit bubble. Tuition costs are rising at a rate of multiple times inflation. Students are graduating with record debt levels and essentially getting preyed on by out of control universities and banks who have the power to raise costs at pretty much any rate they would like. On the other hand, most university endowments continue to grow to record/near record levels while students see increased burden, and universities enjoy tax exempt status.

In my view, the fault lies principally with two parties, the universities and the government. Colleges should be forced to put a stake in their own students success, and share much more of the burden of financing their education than they currently do. Right now universities admit way too many people than they can adequately place in a job, and start up schools that are profitable for the university, but force massive debt burdens of students (think almost any law school not in the top 20/30).

If you make student loans dischargable in bankruptcy, the private market will disappear immediately (government loans will likely never be dischargable, much like IRS debt). Instead of private banks lending in the secondary market, it should be up to the universities themselves. The idea of "non profit" universities hoarding cash at the expense of the students is just wrong, especially when many of their constituents are having severe financial issues. If universities aren't willing to give out more endowment money directly to the students, they should have to pay taxes to the government to pay for students education that way.

You have already started to see a lot of this at universities like Harvard/Yale which have massive endowments and can easily afford to dish out lots of financial aid. University money should go to educating students, not building pretty buildings and giving it to professors/administrators. Replace the private loan market with university aid/financing, and you will see a lot of lower tier schools contract their enrollment immediately, which is badly needed as too many students are paying way too much for lower tier educations with limited job opportunities.

After that you have the problem of current loan liabilities. Some kind of hybrid solution makes sense in my view. Obama has "sort of" done that, backstopping how much people can be forced to pay relative to incomes. Personally it probably doesn't quite go far enough, but making current loan liabilities retroactively dischargable is a bad idea too. You need to fix future liabilities at the same time, however, or the problem will continue to spiral out of control. Another thing that can be done is increase the amount of income one can make and deduct student loan interest. Right now it's crazy low to the point where anyone with a high end degree makes too much money and is forced to pay all their loan interest with after tax money.

Last edited by drshang; 01-04-2012 at 11:28 AM..
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Old 01-04-2012, 12:11 PM
 
Location: Northern MN
3,869 posts, read 13,419,555 times
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The cost of your education or raising costs (we all incur them) of tuition are moot.
Everything cost more the reasons don't change that.

You knew how much the loan and your tuition costs were going to be up front and YOU agreed to it.

You made a choice.
NO one has to go to collage.

If you can't afford it, you shouldn't be going.
If you don't know how your going to pay off your loans YOU shouldn't take one out.
Your not entitled to a collage edgamacation.


Going to collage shows an employer you can finish a task and you are responsible. What is responsible about defaulting on a loan?

You are now an adult take responsibility for your actions.
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Old 01-04-2012, 08:09 PM
 
Location: Seattle
1,368 posts, read 2,975,825 times
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Quote:
Originally Posted by snofarmer View Post
You knew how much the loan and your tuition costs were going to be up front and YOU agreed to it.

Your not entitled to a collage edgamacation.
Actually a lot of students who enter college for a 4-5 year degree will have ending tuition costs that are 30-50% higher than when they started. Interest rates also fluctuate on loans so the cost of financing an education can change dramatically.

And FWIW, I have no student debt, and a college degree and masters degree, so none of this discussion has any relevance to myself. I graduated from school before the current credit bubble started. The university I attended for undergrad has approximately 250-300% higher tuition than in the late 90s. Regular inflation is something like 30-40% since then. And rates on staffords have gone from 3-4% (2002) to 6-7%.

There is absolutely no good reason to see tuition inflation as high as it is.

Last edited by drshang; 01-04-2012 at 08:30 PM..
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Old 01-04-2012, 09:43 PM
 
Location: Northern MN
3,869 posts, read 13,419,555 times
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Quote:
Originally Posted by drshang View Post
Actually a lot of students who enter college for a 4-5 year degree will have ending tuition costs that are 30-50% higher than when they started. Interest rates also fluctuate on loans so the cost of financing an education can change dramatically.

.
And my point is they don't have to graduate or even go to school.

Every semester they know the cost involved yet they agree to it and continue to rack up their dept willingly.
again it was/is a choice.
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Old 01-04-2012, 10:31 PM
 
Location: Metro Detroit, Michigan
14,248 posts, read 14,738,934 times
Reputation: 14726
Quote:
Originally Posted by drshang View Post
There is absolutely no good reason to see tuition inflation as high as it is.
Except a lot of students being told by everyone including the government, that they HAD to go to college, or else... And of course, parents all too willing to shovel them outta the house. Oh yea, and a fat finance industry looking to profit off of all of this

All things happen for a reason.
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Old 01-04-2012, 10:40 PM
 
Location: NJ
18,668 posts, read 17,479,479 times
Reputation: 7284
College Deans did exactly what corp managers did while they were allowed to..empire building..as with gov backing loans, they were passing on the costs of their empires to the students, who cared squat as they looked at loans as if it were a fairy tale..so far down the road.
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