The colleges need to be underwriting these loans; only then will they act sensibly.
I am opposed to anything but the following:
1. Government ceases student loan operations immediately,
2. All accounts in good standing will be maintained until transfer to qualified financial institution is codified with termination of such services,
3. All delinquent accounts are given 180 days to be brought to good standing or auction to private collections firms will occur as happens with all bad debt.
Period.
Chips will fall as they may.
The government does not belong in the student loan business....period.
I am not an expert on student loans and I didn’t sleep in a Holiday Inn, BUT
Doing some research over these years since Bath House destroyed the student loan program, I have discovered that
Student Loan Interest is capitalized, like a credit card, so interest accrued is added to the original debt. Is that correct?
There may well be be borrowers who welch on paying back but I think it would be far more humane to treat student loans like a car loan, instead.
A fixed amount of interest paid back. Borrow $25,000? Pay back 30. Or whatever.
The noise over unpaid student loans is not completely fair, as the practice as is is not fair. The government should not be acting as a loan shark against young, naive students and starry eyed parents.
Cheers.
Loans only for those pursuing degrees vital to the U.S. no loans for useless degrees.
The guidance should be that 50% of any loan default or forgiveness should be paid for by the college. Or taken out of the endowments of all colleges to make sure the Ivy League feels the pain too.
The federal government should never have been involved in loans.
Rather than the gubmint being a direct lender covering all academic pursuits, even the ridiculous social science ones that guarantee the loan will not be repaid, the gubmint should go back to being a guarantor of student loans that banks make utilizing their own due diligence but with a restrictive list of loans the gubmint will not guarantee which will be anything in social sciences and with most guarantees applying to STEM studies pursuits. This way we will produce a lot more of what the nation needs while saving young people from a life of debt as a theatre arts graduate.
The solution to student loan issues is STRIDENT enforcement of contract law.
Seize paychecks and property.
Just close this branch of welfare and let the private sector figure it out. A lot of good companies are hiring smart folks and teaching them useful tricks.
Joe Bidens basement occupation 101 is not one of them classes that be funded.