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I'm going to take off my libertarian purist goggles and make the following points:
Public lending by the government to students should ONLY be toward skills that are NEEDED in this economy. The government should ENCOURAGE certain majors via student loans. That is IT!!!! Engineers, architects, manufacturing based majors, agriculture, scientists, etc. majors that can REPAY what they owe and that will CONTRIBUTE to the economy should be given loans.
Private lenders are SOL. Already bailed you out once.
There's no such thing as "too big to fail" when when the federal loan amounts are not eligible for bankruptcy consideration. That's the price of accepting taxpayer dollars to fund college. There are strings attached to every federal dollar. Students will owe that money until they die. When wages can be garnished and tax returns/ Social Security can be intercepted, then TBTF is not a valid concept. There is no failure...just delayed and/or deficient payement.
As far as private loans go, students have even LESS opportunity to claim ignorance. These loans are sought after by the students. They don't just fluidly appear in student accounts like federal loans do. In order to even GET the loan, the risk analysis piece is conducted on the student/family borrower and a decision is rendered if creditworthiness is favorable. The student then signs the Promissory Note. There's NO PLEADING IGNORANCE.
Banks who took on this risk should also be held accountable via the traditional collections and bankruptcy process if the risk exposure becomes too overbearing.
I agree but hasn't the government already stepped in and taken the debt off the private lenders ala fannie/freddie did in the housing market??
The people who got educations with financial assistance from taxpayers need to get their life in order and learn to be responsible and pay their debts.
I don't want to hear what losers they want to be in dumping this from some of the tax payers to all of the taxpayers. IMO they can go to hell.
I'm going to take off my libertarian purist goggles and make the following points:
Public lending by the government to students should ONLY be toward skills that are NEEDED in this economy. The government should ENCOURAGE certain majors via student loans. That is IT!!!! Engineers, architects, manufacturing based majors, agriculture, scientists, etc. majors that can REPAY what they owe and that will CONTRIBUTE to the economy should be given loans.
Private lenders are SOL. Already bailed you out once.
I don't see what the problem is for government. It's WAY better for government to let student loan borrowers default, as there is VASTLY more money to be collected from them in the form of piled-on fees.
There's no such thing as "too big to fail" when when the federal loan amounts are not eligible for bankruptcy consideration. That's the price of accepting taxpayer dollars to fund college. There are strings attached to every federal dollar. Students will owe that money until they die. When wages can be garnished and tax returns/ Social Security can be intercepted, then TBTF is not a valid concept. There is no failure...just delayed and/or deficient payement.
Not even deficient, unless you take yourself off the financial grid and become uncollectable. There are HUGE fees to be made off student loan defaulters.
But government changed the bankruptcy rules in the middle of the game, which is why there is so much money to be made today.
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