There actually has been an OWS-inspired movement to forgive student loan debt, fwiw. I don't expect it to happen because struggling college grads typically do not have the lobbying power that Wall Street banks possess. I think the country is done with bailouts for the most part.

 

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Yeah. It's always easy to renegotiate away other people's money and income stream from payments.

Easy-peasy. And oh so just.

 

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Well, if you want to get all Paulg about it, I'd say it's "small" but not "very small."


Also, I will amend my previous statement a little. Only idiots and people with asshole parents who can but won't pay for college end up getting private loans. I knew someone like that. His parents were well off so he didn't get financial aid for undergrad, but they were also douchecanoes and wouldn't pay or even lend him the money, so he had to take out private loans.

Reread what exactly? You didn't even mention bailouts until you started backpedaling.

 

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/ignore

 

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I know you think that debt peonage economy (with debtors prisons and all) is really a good idea.


But it is bad for the economy. Your moral guide is to make yourself subservient to lenders...and while thats fine for you, its not really a good policy.


There really isnt a good argument, economic or moral, for treating student debt as a lifelong anchor. Every advanced economy agrees that the ability to negotiate or eliminate past debts is a positive for the economy as a whole. No reason to treat student debt any differently outside of a desire to provide the government and private lenders a huge taxpayer handout.

Honestly, I think that the kid's parents probably taught him some valuable lessons about taking classes that were a) worthwhile, and b) applying himself so as to get the most out of his education dollars.

With that said, I think it would be better perhaps to let the kid take the loans out themselves under the premise that they're on their own for getting their college education financed, and then help them pay them off afterward. As much as you hate the concept of attempting to make people, especially young adults be responsible for themselves, I know this rankles you to think about, but I don't really think parents should feel obligated to pay for their kids to get a degree Indo-Eurasian Orphan Poetry Analysis...

 

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If you made student loan debt dischargable rates would go up and/or eligibility would be tightened.


Which probably isn't a bad thing for private loans. Because people shouldn't be taking those out anyhow without a very good reason.


I doubt it would effect the federal stuff much given IBR already exists.

I am not against future contracts being crafted that don't have lifelong debt slavery as a part of them. Have at.

I am against punishing or bailing out those who went into these arrangements voluntarily IN THE PAST who have active contracts now. I felt the same about the banks who got massive bailouts, btw. And have said so a couple times.

 

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No. All his parents did was make sure he'll be shackled to debt at highish interest rates for most of the rest of his life. At least until they die and he gets their money and can use that to pay off his debts. Which at 6% interest will end up costing the family at least 2x as much in the long run.


The funny thing is both of them got their college educations paid by their well-off parents. They are just assholes who think like you do that it "builds character" to screw over their kid. People who talk about "building character" as a justification for screwing people over are nearly always lacking in the character department themselves.


These people are such douches they wouldn't even lend their kid the money themselves to avoid the 8% interest. Even though they have plenty of it lying around.