Should student loans in US be forgiven?

VMware jim32
Oct 20, 2018 47 Comments

Students loans are crushing the new generation. The college education has definitely not brought the benefits promised to students due to host of factors.

It is likely a good idea to forgive such loans and start afresh after sensible reforms in higher education funding.

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TOP 47 Comments
  • Google AudiBoi
    Education is a privilege, loans are a choice. I’d argue to get a developer job I no longer need a degree
    Oct 20, 2018 4
    • Microsoft gfba68
      Comments like these are why people think conservatives are idiots.
      Oct 20, 2018
    • Amazon amazoning
      Yes, education is a privilege and guns are rights. Idiot.
      Oct 20, 2018
    • Google AudiBoi
      Who said anything about guns? Idiot
      Oct 20, 2018
    • Google AudiBoi
      Who said anyone was a conservative?
      Oct 20, 2018
  • Microsoft hddyxvh
    I'm mostly progressive and like the idea of free education. But forgiving loans is not a straight yes. I think it's unfair to those who were fiscally responsible. What about those who didn't take loans, or took smaller loans, and took longer to study or studied at a cheaper school to make sure they don't get into unpayable debt? Isn't it unfair to them? The very those who thoughts things through will end up with lost opportunity, while slightly less cautious folks would get a pass.
    Edit: I should add that I didn't study in US, so I might not have the full picture of reality. But I do have the experience of passing on a good school that I got into because of the inability to pay. Just sharing my thoughts.
    Oct 20, 2018 5
    • Google skillet
      We don't live in isolation. Why did the tax payer foot the bill and take on toxic assets from various banks in 2008? There is more to this.

      Debts when out of control become public issue - that is , since we don't live in isolation, if everyone makes the same mistake, it becomes taxpayer headache. This is why we have regulations and laws. Their purpose is to hold the banks to some basic sense of responsibility and not bring down the system if they become bad.

      The best answer here is to write regulations that make it not possible for bad debts becoming a large enough concern for taxpayer bailouts. (Bad debts will always be there - so I m being very particular in saying it matters to the government only when it becomes large enough concern for public bailout).

      If the world is crumbling in front of you, government can't sit idle and watch and the taxpayer cash is what gets used then.
      Oct 20, 2018
    • Microsoft hddyxvh
      You make a good point. If debts have gotten to a state where they can bring down the economy, then yes we need an answer. I m not totally opposed to it.

      Btw there is/was some scheme by Obama where if you had been paying off debt slowly but regularly, then you are off the hook after 10 years or so. That is a good idea too. ( I don't know the full details).

      As you can see my main opposition is about "fairness", but I m not totally opposed. Things that will help me vote the other way:
      1. If debt is bringing down economy.
      2. Or, If we can bailout in a way so that the ones really struggling get the benefit.
      3. Or if we can show that most students in debt are indeed struggling, and a blanket forgiveness is needed.
      Oct 20, 2018
    • Microsoft gfba68
      So? Why shpuld fairness be a criteria for a good public policy? This is anseropus question.
      Oct 20, 2018
    • Google skillet
      Fairness needs to be a criteria because:
      1) (good reason) it ensures a group of one or more parties to the transaction aren't taken advantage of by another group of one or more parties. These taken advantage of happen due to various reasons including information assymetry.

      2) (real reason) public policy is set by government, who need to go back to voters. Showing they were fair gives them more votes 😁
      Oct 20, 2018
    • Microsoft gfba68
      People who paid off their loans before foregiveness would be annoyed for about 20 minutes, then they would love on. There would be no negative consequences. Arguments for fairness in policy decisions like this are silly.
      Oct 20, 2018
  • Facebook Instagrаm
    Should mortgages in US be forgiven?
    Oct 20, 2018 1
    • Google skillet
      That happened in 2008. The mortgages were consolidated by banks and they were all infused with cash so they can stay afloat. The entities are different in this question (people instead of banks) but the principle is the same.

      The question is not 'should' - because it has happened. The question of equivalence is whether we 'should forgive now'.
      Oct 20, 2018
  • Microsoft gfba68
    I don't believe any benefits were promised. I keep hearing people say they were promised something, but I don't believe it.
    Oct 20, 2018 0
  • Amazon EQjp82
    If everyone can just offload their loans by waving their hands, then nobody will have learned anything and we’ll just find another way to get ourselves into crippling debt in the future. What could be done instead is expanding service subsidy programs like ROTC to other public/civilian sectors, I know Singapore has a program where the government pays for your whole education in exchange for coming back and working as a public servant for 5-6 years afterwards. 5-6 years might seem like a long time but if you’re >$150k underwater from loans or however much college is nowadays, just compare how much you’d have to save to pay it off on your own and I think it’ll come out to be a pretty good bargain.
    Oct 20, 2018 1
    • Google AudiBoi
      Excellent. I did military service just to be able to pay for college. A similar civil program is needed for those where military service is not appropriate
      Oct 20, 2018
  • Google skillet
    If the government never intervened in the past when the debts went out of control, I would have said no government shouldn't.

    When the government can dole out free cash to greedy wall street, I see no reason why they shouldn't in this case.
    Oct 20, 2018 0
  • eBay / Eng bluechi
    Wouldn't forgiving student loans cause interest rates on these loans in the future to rise?
    Oct 20, 2018 0
  • Intel Japdh513
    The devil is in the details.

    There’s a huge chunk of student debt owned by doctors and lawyers. They will take 10-15 years to pay it back, but they will end up on the plus side by $5-$10M of lifetime earnings.

    There’s another huge chunk by people who start school and never finished (about 40% of people who start). I would call these people the “College is not for everyone” crowd that fell for the bullshit line that you have to go to college to be successful. This is a complete abyss that they will never get out of. There needs to be a shift in the incentives so that the banks are taking on the risk instead of the government so they vet the loans properly.

    A final chunk is fucking morons who get Ph.D’s in liberal arts. No sympathy when they make $40K/year salary with $250K in debt.

    Most of the rest of it is angst and anxiety amongst the middle class that don’t fall within the two, and make up less than 20% of the debt.
    Oct 20, 2018 20
    • Microsoft gfba68
      LOL I have a CS degree from top 5 program. But a lot of non engineers think we are idiots. People like you are why.
      Oct 22, 2018
    • Intel Japdh513
      Seems like you have a lot of unfounded biases.
      Oct 22, 2018
    • Microsoft gfba68
      LOL says the moron making blanket statements about other people's degrees
      Oct 22, 2018
    • Intel Japdh513
      I married someone with a top 5 CS program degree so I can waste time on Blind complaining.

      Why did you choose CS if liberal arts degrees have value?
      Oct 22, 2018
    • Microsoft gfba68
      because I like CS...
      Oct 22, 2018
  • Amazon / Eng 🛴🗿☄
    "College education has definitely not brought the benefits promised to students" -- who promised students any benefits from getting a college education? I'm sure it was never the people giving out these student loans.

    I think more should be done to protect/ teach kids before they take out these loans. Make them take a mandatory class that teaches them potential outcomes of taking student loans to help them understand the risks involved.

    But nothing in life is ever given for free. Forgiving student loans would just transfer the burden from one place to another.

    But honestly college aged students need to look outside of the box. There are tons of careers in the us that don't require a college education that will still pay 80-100k . Sure, it's not tech money, but it's plenty more than enough to provide for a family outside of tech hub cities
    Oct 20, 2018 0
  • Oath / Mgmt Atinlay
    Of the people who voted “yes” how many have student loans? You don’t get to vote in this one
    Oct 20, 2018 0
  • Apple eurp31
    Why shouldn’t you be able to get this debt erased in bankruptcy court? Why is it the golden goose that can’t be touched. All other debt can.

    Explain the logic. Bankruptcy ruins you for 7 years minimum. It’s not a decision people take lightly. This isn’t a practice that has a record of wide abuse. Judges aren’t stupid.
    Oct 20, 2018 5
    • Intel Japdh513
      A couple reasons

      1) without this clause, the interest rate would skyrocket to 10% from about 3% because far fewer people would pay their education loans.
      2) the value of accreditation is amortized over 40 years. Imagine not paying your mortgage but still having the right to the house 40 years later.

      Most people’s credit doesn’t matter until you are in your early 30s anyway when you buy your first house. So with your plan, the rational thing would be to file bankruptcy on your graduation day and pay cash for everything for a while.

      I’m totally fine with discharging education debt, just realize all future school loans will see a dramatic increase in interest rate because no one will provide you a student loan in the first place otherwise.
      Oct 20, 2018
    • Apple eurp31
      I don’t think you understand how bankruptcy court works. No judge anywhere would allow some graduating student file for bankruptcy after college.

      Banks will also be more hesitant about handing out loans to students getting dead end degrees. Or rather charge higher interest rates for them than other lower risk degrees.

      Likewise diploma mills will suffer greatly, which they should. They’re fraudulent schools after cheap money that banks don’t worry about lending because they’re guaranteed to get paid back.

      Seems like a win win here.
      Oct 21, 2018
    • Intel Japdh513
      Took an extreme situation of filing for bankruptcy on graduation day - take a year+ vacation, claim you couldn’t find a job, what do you think a bankruptcy court would say?

      Liberals don’t like high interest rates - disadvantages poor people because of “predatory lending,” particularly because the liberal arts majors who rack up massive debt for useless degrees vote Dem about 98% of the time.

      Diploma mills (not sure if you are referencing for-profit) are overstated in terms of their impact moving forward. All you have to do is make graduation rates transparent. The diploma mills got a free ride for a few years because nothing like them existed before so they could claim they were going to graduate a bunch of people when it was clear they were not.
      Oct 21, 2018
    • Apple eurp31
      I think a bankruptcy judge will laugh and tell the kid to get their face out of their court and come back after 5 years of struggling, and producing hundreds of verified job applications specific to their field and proof they will never be able to reasonably pay off their debt. Bankruptcy isn’t easy. I know 2 people who have gone through this. It’s hell.

      Interest rates reflect risk. I don’t think it’s unreasonable to attach slightly higher risk with riskier degrees from uncertified diploma mills. Either way the Feds should be regulating all of this so people aren’t fleeced by the banks and bogus for-profit schools that produce diplomas that employers don’t want. When money is restricted from these types of schools, they’ll be forced to up their game, get certified and compete with the public schools. And the poor qualify for FAFSA. Why take out private loans when you can get a low interest loan from the feds?

      Apart from the obvious, which is education should never EVER cost as much as it does in the states, I find it ridiculous that this debt cannot be forgiven through the regular channels.

      Either regulate education to be cheap and unforgivable, or don’t regulate cost and allow the debt to be forgiven in bankruptcy. Can’t have it both ways.
      Oct 21, 2018
    • Oath / Mgmt Atinlay
      Same kid probably rolled up in a Tesla and is trying to claim hardship.
      Oct 21, 2018