Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
The chart includes States not listed in the spreadsheet, something I over-looked, since I took the total percentage from the spreadsheet data.
...
just wanted to highlight the important part of your diatribe. The part where you admitted to making a mistake, even though you attempt to minimize it and bury it in BS.
How is that premise false exactly? You can give a college degree to every American citizen, but someone still has to flip the burgers. Financing their college degree would be a terrible investment since Burger King doesn't pay more for their educated workers.
Only if you believe the oversimplified notion that an education is simply beneficial to making money. A society benefits from an educated populace, whether they choose to maximize their earning potential is another matter entirely.
Let's not forget that the vast majority of student loans are profitable. In that sense they are good investments. Particularly if you cannot forgive them through bankruptcy.
You might as well make the argument that some very successful people never graduated high school, so why bother encouraging this practice? A "burger flipper", as you so eloquently describe people who actually are working for a living, doesn't even need a HS diploma, right?
Lots of people arguing that student loans should not be dischargeable in bankruptcy due to the fact that the education can't be taken back. Fair enough, although I'd advocate stripping the diploma from the individual. In other words, they would not be allowed to claim they have a college degree on their resume or job applications.
This leads me to my next question. Why are we allowing tens of thousands of dollars to be loaned to people who have no collateral to offset it in the case of financial distress? Instead, they are left with a burden for the rest of their life, even if they are not able to capitalize on it and pay it off. To me, it is not a humane practice to allow people to willingly sell themselves into indentured servitude. Either they should be required to be better educated on the TRUE value of the education they are financing or the money they are allowed to borrow should be capped based on actual earning potential of the degree they are pursuing. Most BA/BS degrees should have about a $20k borrowing cap IMO, and most grad/professional degrees should have a borrowing limit that's capped at about $50k.
We stepped up regulation on the home loan industry after the housing bubble burst. I think it's time we start investigating practical regulations for the student loan industry with the looming student loan debt bubble on the horizon.
Either they should be required to be better educated on the TRUE value of the education they are financing or the money they are allowed to borrow should be capped based on actual earning potential of the degree they are pursuing. Most BA/BS degrees should have about a $20k borrowing cap IMO, and most grad/professional degrees should have a borrowing limit that's capped at about $50k..
I like that. I'd favor, no matter the costs, capping loans at a percentage of just tuition if commuting (75% maybe), or at tuition and fees only if living there. Hence, students would need savings or current employment income for the annual gap, and they would have some immediate financial skin in the game.
For a car loan or a mortgage, immediate down payments are expected..skin in the game..why not college costs?
Now, for the lowest income, I'd consider allowing them to earn during the school year to meet the requirement instead, but failure to earn your part freshman year would negate your ability to get any loans sophomore year.
This leads me to my next question. Why are we allowing tens of thousands of dollars to be loaned to people who have no collateral to offset it in the case of financial distress?
This is a very good question.
Quote:
Originally Posted by Tekkie
Instead, they are left with a burden for the rest of their life, even if they are not able to capitalize on it and pay it off. To me, it is not a humane practice to allow people to willingly sell themselves into indentured servitude. Either they should be required to be better educated on the TRUE value of the education they are financing or the money they are allowed to borrow should be capped based on actual earning potential of the degree they are pursuing. Most BA/BS degrees should have about a $20k borrowing cap IMO, and most grad/professional degrees should have a borrowing limit that's capped at about $50k.
Seems reasonable to me.
Quote:
Originally Posted by Tekkie
We stepped up regulation on the home loan industry after the housing bubble burst. I think it's time we start investigating practical regulations for the student loan industry with the looming student loan debt bubble on the horizon.
There is no student loan debt bubble on the horizon. Student loans have a safety net built into them.
I like that. I'd favor, no matter the costs, capping loans at a percentage of just tuition if commuting (75% maybe), or at tuition and fees only if living there. Hence, students would need savings or current employment income for the annual gap, and they would have some immediate financial skin in the game.
For a car loan or a mortgage, immediate down payments are expected..skin in the game..why not college costs?
Now, for the lowest income, I'd consider allowing them to earn during the school year to meet the requirement instead, but failure to earn your part freshman year would negate your ability to get any loans sophomore year.
The problem with this approach is that more students will have the desire to work while attending college. We definitely don't want that. Their time is better used doing research, writing grant proposals, and thesis work.
If you would like to take out a student loan where the recipient can default, fine. Only stipulation is, the interest rates will be significantly higher to make it attractive for the banks to issue the loans.
On the other hand, you will also have the same access to low interest rate loans which are non dischargable through bankruptcy.
Seems fair enough to me. What many young folks will soon learn though... You can't have your cake and eat it too.
If you would like to take out a student loan where the recipient can default, fine. Only stipulation is, the interest rates will be significantly higher to make it attractive for the banks to issue the loans.
On the other hand, you will also have the same access to low interest rate loans which are non dischargable through bankruptcy.
Seems fair enough to me. What many young folks will soon learn though... You can't have your cake and eat it too.
The problem with this approach is that more students will have the desire to work while attending college. We definitely don't want that. Their time is better used doing research, writing grant proposals, and thesis work.
I disagree. Many mags rank schools on their party atmostphere-lets trade p/t work for p/t partying.
If you would like to take out a student loan where the recipient can default, fine. Only stipulation is, the interest rates will be significantly higher to make it attractive for the banks to issue the loans.
On the other hand, you will also have the same access to low interest rate loans which are non dischargable through bankruptcy.
Seems fair enough to me. What many young folks will soon learn though... You can't have your cake and eat it too.
In that situation, kids will take out the high interest loans where they have the option to default. They will simply rack up $100k in debt without any intention whatsoever of paying it back. Then upon graduation, they will immediately file for bankruptcy and wipe it out. So what? They will have bad credit for the next 5 years or so? They still have the degree and nice job that goes with it.
Building on your suggestion, another stipulation I would add is that the degree will be revoked if the person defaults.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
