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There is so many lousy or poorly educated parents out there that expecting that the teaching of life skills in the home is often not reasonable. The gaps have to be filled in somewhere, and often that is by the state.
I think that's the real problem to tackle. Lousy parents.
But you can get some idea about it. If you know lawyers are a dime a dozen, you wouldn't want to be one.
Why do kids want to pass out from prestigious colleges? Coz these colleges have an existing reputation of being good. No guarantees for the future though.
Last edited by nirvana07; 12-28-2017 at 10:29 AM..
Doesn't it cross the kid's mind that if Mom and Dad don't have the money then it must be a lot. Plus if mom and dad can't afford to get a loan to pay for the kids college it must be a lot or hard to get. Mom and Dad are working and can't get the money, so the kid has got to know they are not working themselvesso they are sticking their necks out pretty far themselves.
It seems that should make a kid think twice about how serious taking a loan out is for college, especially when it is well know it's hard to escape that type of debt. Heck it's been in the news for a long time now.
If one thinks "how are kids supposed to know what kind of trouble they are in when they are barely 18", I think today's kids are much more knowledgable than we give them credit for. Plus it's not like student loans are new and no one knows about them. Heck, back in the 70's my sister had to get financial help to go to college.
A couple thoughts:
1) Neuroscientists tell us that the human brain doesn't stop growing until about age 25, and hence the 18 year old brain isn't as capable of making rational choices as we adults.
2) The 18 year old has a very different discount rate than an adult - a different time-value-of-money discount rate. So even if they are capable of making perfectly rational decisions, the different discount rate can yield a result that is not rational to adults.
They might need to be more careful about whom they give student loans to.
Highly unlikely to happen. Banks have a lot of incentive to Dole out student loans as they ar e not dischargeable under bankruptcy, and hence banks' risk is very limited.
Also, if banks give student loans to selective students, soon there will be claims that banks are being racist and pandering to the students who get into established schools.
Regardless of whose "fault" it is, again how does it make any sense at all to deal with it by removing any ability for the debtor to earn a living? Why are so many so consumed with simply punishing people we feel made decisions we wouldn't have, even if it does nothing at all to solve the problem?
High school shouldn't be teaching personal finance in any depth. Personal finance is not an academic area of study. It's a life skill like cooking, keeping up with current events, cleaning, etc.
Location: Formerly Pleasanton Ca, now in Marietta Ga
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Quote:
Originally Posted by SportyandMisty
A couple thoughts:
1) Neuroscientists tell us that the human brain doesn't stop growing until about age 25, and hence the 18 year old brain isn't as capable of making rational choices as we adults.
2) The 18 year old has a very different discount rate than an adult - a different time-value-of-money discount rate. So even if they are capable of making perfectly rational decisions, the different discount rate can yield a result that is not rational to adults.
Well I can definitely see you points.
But to counter with a few thoughts, I understand the 25 year thing, but I feel it's kind of a generalization. I've seen 18 year olds make good decisions and 25 to 40 year olds make very irrational decisions.
Point 2 I can definitely see. I almost wanted to say that the the stereotype of millennials may come into play. Many have been given so much by their elders and parents that the sense of entitlement and value of what they get for free has been distorted. I would think they know they are going into debt, but because of everything being easy and always working out for them they have no idea of how deep they are getting into. They have never experienced real pain or consequences.
I really don't blame them, society did this to them, although the intentions were to help them get the best.
They shouldn't be teaching Sex Ed in depth either. Spend a couple months going over the basics about safety, consequences, and how things work, but leave the rest up to the parents/internet.
Regardless of whose "fault" it is, again how does it make any sense at all to deal with it by removing any ability for the debtor to earn a living? Why are so many so consumed with simply punishing people we feel made decisions we wouldn't have, even if it does nothing at all to solve the problem?
I think if the debtor is still working but simply refuses to pay (any amount) on their loans, it's a sign that they don't intend to repay it back. Threatening them with loss of their license might force them to at least think about a payment plan, even if it's just sending $40 a month. Also some of these professions are over saturated anyway and not needed any more, such as lawyers - too many of them. Most people won't see this as some huge loss to society if a few people lose their legal licenses. Although teaching and nursing have far more value.
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