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I know some folks who applied for and recieved debt forgiveness, but I imagine that’s not common. As weird as it sounds, I’m all for bailing out the active doctors, nurses, dentists, engineers etc. of society as they completed their studies and perform a valuable function to society.
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Just make all STEM classes tuition free.
That will have the effect of moving the brighter students into STEM fields. It will also reduce demand for student loans.
This sounds like a "tail wagging the dog" proposition. It's an interesting perspective, but, by the same rationale, one might also bring down the cost of homes, cars and healthcare... by reducing the available flow of income and financing.
Perhaps it is instead time for the public to weigh the cost of a college education with the value provided and ask, "Does it really make sense to indebt one's self $60K+ for a basic liberal arts degree - for which there is little demand?" To me, this is more of a 'parenting' problem than a federal student loan problem.
Disagree. The issue with homes and cars (didn't know the gov financed healthcare loans) is already controlled by market value. You aren't getting a $50k car load for a Ford Focus or a $500k mortgage for a property appraised at $300k. So tuition loans need to be limited based on the value of the degree. No $60k loans for a worthless liberal arts degree.
It is too late to limit the loans. What needs to happen is to provide an escape to the students. For those already encumbered with the debt allow reasonable bankruptcy or provide other ways to clear it.
No way, not unless they have no *prospects* for income. Too many degreed people have good paying jobs but whine about their student loan debt because it's a lot. I'm sure they'd rather buy a nice boat than shell out hundreds of dollars every month. But they only have that income because of the education. If they don't have adequate income then I'm ok with suspending the loan but it should not go away forever.
No way, not unless they have no *prospects* for income. Too many degreed people have good paying jobs but whine about their student loan debt because it's a lot. I'm sure they'd rather buy a nice boat than shell out hundreds of dollars every month. But they only have that income because of the education. If they don't have adequate income then I'm ok with suspending the loan but it should not go away forever.
This is all stuff that should have been considered before the loans were established.
Again why on earth would you ban bankruptcy as an out from these loans? The only rational reason is the knowledge that the recipients would be able to use bankruptcy...so the formulators of the loans knew the recipients would often have trouble paying them back and would be able to escape through BK.
I would tend to agree that those who can should pay them off. But those who can't should not.
The bad part to me is that the Fed loans drove the cost of a college education up by a factor greater than two. The system was well limited by the ability of the client to pay...but the Feds fixed that by financing the buyer...but refusing to accept that the buyer might be overloaded by dealing with that financing.
This is all stuff that should have been considered before the loans were established.
Again why on earth would you ban bankruptcy as an out from these loans? The only rational reason is the knowledge that the recipients would be able to use bankruptcy...so the formulators of the loans knew the recipients would often have trouble paying them back and would be able to escape through BK.
I would tend to agree that those who can should pay them off. But those who can't should not.
The bad part to me is that the Fed loans drove the cost of a college education up by a factor greater than two. The system was well limited by the ability of the client to pay...but the Feds fixed that by financing the buyer...but refusing to accept that the buyer might be overloaded by dealing with that financing.
And I will agree with you that someone with no realistic chance of repaying it - a person who never completed or obtained a worthless degree with little eaning power - can be granted bankruptcy. But a person with a STEM degree or IT degree with a significant earnings potential should not be allowed to clear it. If they are out of a job and have no money, suspend it 5 years.
I have a philosophical aversion to BK even (especially?) for businesses. I think debt should be deferred not dismissed.
It seems that federal student loans are wrecking havoc on America’s young adults. Schools can pretty much charge whatever they want now, so long as they know Uncle Same will front them the money.
Is it time for congress step in and greatly limit access to federal student loans, which would presumably decrease tuition rates when no one can afford to go to expensive public and private universities? Of course students could still go to private lenders but no doubt federal student loans are the gist of the problem.
Nope, bad idea. It will just end up making colleges for the wealthy and the excess space will be filled with international students OR they will lower whats required to get accepted.
There’s too much fluff in the college experience that is unnecessarily increasing cost. I think we do a terrible job as a country preparing kids for that next stage in life and send far too many to college who shouldn’t go and leave it up to them to make very costly decisions.
There is a simple solution. Quit requiring 120 hours to get a degree. You can get all core classes in 80 hours. Then you are required to take 40 hours of electives to get the 120. So if you gave a degree for getting all the core classes, you could cut debt to 2/3 of what it is now. Many of the electives are just "junk" classes anyway. Most graduates will never need them. I have 60 hours and can substitute teach in most districts. I could take 14 more hours and have all core classes done, but would only have an Associates Degree. Let that be enough.
That will have the effect of moving the brighter students into STEM fields. It will also reduce demand for student loans.
This will lead to a bunch of students going into STEM who don't belong in STEM, for aptitude reasons, failing and suddenly being unable to afford tuition for a degree that fits their abililities.
Maybe instead make the basic requirements of any degree (outside the major) free, with the caveat that you don't get to switch degree programs more than once, to prevent loading up on free requirements?
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