What To Do About The Student Debt Crisis

Townhall.com ^ | June 3, 2019 | Rachel Alexander

[FLT-bird]

Whose going to pay for social security and Medicare if they don’t have kids?

[Alberta's Child]

The difference is that I wouldn't have been $100k in debt with student loans at any age.

Imagine that.

Let's change the narrative a bit and see how your attitude translates to another hot issue of the day:

Numb skill anyone $100K in debt, in their 20's and 30's, would vote for a Presidential candidate that promises to allow the free flow of cheap imported products that they can afford. YES, EVEN YOU.

Funny how your political views don't follow the same logic on YOUR pet issue.

[central_va]

Even if the GOP contains ossified myopic idiots like you that live in the past, we still need to come up with a plan to address this issue.

[Alberta's Child]

I don't know what you're talking about. I'm not a Republican, and have never been one.

My suggestion a few years ago was to "forgive" student loans by giving borrowers a window of time (say, 6-12 months) to convert their student loan into a mortgage on a foreclosed residential property -- even with a future discount on the loan principal if they stay in the home for five years or more.

That sure would have been a hell of a lot better than just bailing the loans out entirely.

Keep in mind that the loans were never intended to help the students. They were intended to subsidize the banks.

[RFEngineer]

“The whole purpose of creating this “student loan crisis” was to subsidize a banking industry that lost most of its customers after the 2008 real estate market collapse.”

Partly true. in the aftermath of the 2008 financial collapse, the government did take over the student loan industry by guaranteeing virtually all student loans.

But the Student Loan Business before that was an “industry” whose business was to get students into loans then convert the loans to bonds and make money on every step in between. The bankruptcy provision (preventing discharge) was in place well before 2008, so the loans and bonds were considered “low risk”.

That free flow of loan money was what caused the dramatic increase of in the cost of higher education that only increased more after the government takeover.

It’s not going to end well, no matter how it ends.

[snoringbear]

“He is a case study in poor decision making.” * Understand. And, my example was making the same point as yours. I have no problem with folks pursuing their dreams. And, have no problem with them making poor decisions. But, I do have a problem with those who make poor decisions demanding others to pay for them. As in my example, the young lady who ran up $100K in student loans in achieving a teaching degree at Harvard. She could have attended most any state school and earned a teachers degree for significantly less. And, would have probably started as a teacher for about the same pay. But, as Forrest Gumps mom said “stupid is as stupid does “. 🥴

[sparklite2]

Is it too soon to tell? Beyond her first teaching job, the Harvard ticket might give her a leg up over equally qualified teachers as she climbs the ladder.

[PapaBear3625]

Make the universities co-sign the loan. If the borrower defaults, then the university takes the bath, rather than the taxpayers.

Overnight, you would see universities stop admitting people who are unqualified for university work, and stop offering majors for which there are no job prospects.

[PapaBear3625]

What would be really useful would be for the federal government to compile and publish statistics for each college.

Things like “median student loan debt upon graduation”, “percentage who don’t graduate in five years”, “median income X years after graduation”. Break it down further by major.

Then colleges would be under more pressure to keep costs down, as students notice “Hey, I could graduate from State U with a lot less debt, and be earning about as much as graduates of Prestigious Elite U”.

[PapaBear3625]

I’m all for student loan debt forgiveness. Force the banks to give up a portion of annual profits to help pay for it. It’s the least they can do after being bailed out. Include the auto manufacturers too, to be fair.

The banks have been out of the student loan business for years. The feds now do the loans, which means "loan forgiveness" results in taxpayers pay.

[PA Engineer]

I think we need to first realize that colleges are just money making monopolies that exploit the economic system and unfairly prevent competition.

Second, as a monopoly they should not be shielded from market forces. Student loans should be based on the average pay for a given major. Public loans could no longer exceed one years pay and colleges would have to become the guaranteer of funding beyond the basis. As guaranteer of the loan, colleges would also be required to accept bankruptcy in the same manor as other industries.

JMHO.

[snoringbear]

“Is it too soon to tell? Beyond her first teaching job, the Harvard ticket might give her a leg up over equally qualified teachers as she climbs the ladder.” * Could be. I’m not a teacher and have never taught. But, public school teachers are virtually all unionized. And, pay rates, raises, etc, are highly structured, mostly time driven I believe. Promotions require a higher degree such as a masters, PHD. Based upon my discussions with teacher friends (mostly ex-teacher friends, lol) over the years the piece of paper is more important than the name of the school so long as the school is accredited. Perhaps if she should teach at the university level and should have a PHD from Harvard it would have weight. But, you’re right about being to early to tell. Perhaps she will be an exception. Who knows? Not me 😊...

[sparklite2]

You’re right. I didn’t consider the whack-a-mole of unions making sure no one excels. She may have wasted a whole bunch of money.

[ThunderSleeps]

Agreed, pursue your dreams. He did, at great cost. I also agree, that was his choice, I certainly don’t want to pay for it. Heck, no one is stepping up to fund any of the items on my bucket list. It just frustrates me that he could have skipped college altogether. He could have walked into the HR department of any number of large companies or several government agencies known by initials, demonstrated his natural talents, and probably been hired into a six figure position that very week. SMH...