Matter of Opinion - Student Loan Forgiveness under Biden

[rennigade]

Do you guys think student loans should be allowed to be zeroed out through bankruptcy?

[disneysteve]

Do you guys think student loans should be allowed to be zeroed out through bankruptcy?

I think private students loans should probably be bankruptable, just like pretty much every other debt. The amount of money banks lend to students is insane.

I'm fine with Federal loans not being subject to bankruptcy, but the limits on how much you can borrow are very reasonable. Private lenders have no limits. They'll give you as much as you want which is ridiculous. They won't do that with a mortgage or a car loan or a credit card. Why do they do it for a student loan? It's because they know there are no consequences and they can't ever go bankrupt.

Allowing private loans to be discharged in bankruptcy would help rein in all of that nonsense.

[jeffmem]

I may be in the minority here, but I don't care, I am totally against student loan forgiveness. I never took out a loan, I worked. I worked almost all four years of college doing several jobs, I was tired, but I finished debt free. And many of my classmates had the same experience. The younger generation seems to be lazy. Not all, but some. And yes, college tuition has increased significantly, and that is also unfair to students. However, it doesn't mean that the rest of us should have to pay for other people's education. The interest rates on student loans are also ridiculous, and that has to change, these companies are milking students big time, when rates for student loans are more than for a house there is a huge problem. And the government should look into this more than forgiving debt.

[disneysteve]

I worked almost all four years of college doing several jobs, I was tired, but I finished debt free. And many of my classmates had the same experience. The younger generation seems to be lazy.

How old are you? What years did you attend college?

I went to college 1982-86. Lots of people worked their way through. Tuition when I started was $7,000. When I finished it was $10,000. With a full time summer job and a good part time job during the school year, you could make that sort of money. Today, the very same school is $41,000. There's no way anyway is working their way through that with an after-school job. Every generation thinks those younger than them are lazier. It has never been true.

The interest rates on student loans are also ridiculous, and that has to change, these companies are milking students big time, when rates for student loans are more than for a house there is a huge problem.

Unsecured debt always carries a higher cost than secured debt. If you don't make your house payments, they can foreclose. They have no recourse if you don't make your student loan payments. Take a look at your credit card. We have perfect credit. The rate on our Chase card is 17%. If I bought a car, I could probably get 0% or close to it. Big difference between secured and unsecured.

[jeffmem]

How old are you? What years did you attend college?

I went to college 1982-86. Lots of people worked their way through. Tuition when I started was $7,000. When I finished it was $10,000. With a full time summer job and a good part time job during the school year, you could make that sort of money. Today, the very same school is $41,000. There's no way anyway is working their way through that with an after-school job. Every generation thinks those younger than them are lazier. It has never been true.


Unsecured debt always carries a higher cost than secured debt. If you don't make your house payments, they can foreclose. They have no recourse if you don't make your student loan payments. Take a look at your credit card. We have perfect credit. The rate on our Chase card is 17%. If I bought a car, I could probably get 0% or close to it. Big difference between secured and unsecured.

A lot of this doesn't matter now, incomes are higher than they were when I went to school and a lot of people are opting for two year colleges first before university. Incomes have gone up, tuition has gone up, inflation has gone up, what do you expect? There is a problem with tuitions being high but that is not our fault, that is greedy universities. And actually this younger generation is lazier in many ways, and it has been shown, there are even talk shows about this, but that is parents and teachers fault as these kids were growing up.

I went to school in the late 90s. My parents helped me a little, and had saved some money for the kids when they were younger, not much but some. I also had a scholarship that paid part of my tuition. But regardless if I did not have the scholarship I would have been able to cover the cost from my work, just not been able to afford other things. I had a full time job in the summer, working 40 hours a week and saved almost all of it. That is 3.5 months of full time pay. I had many classmates who also worked. And you choose your school by cost also, not just choosing a school close to home or that has a better program, most of us from my HS went to the same school because of the cost. It's a third tier normal university and I don't feel my education is any less than someone else who went to a higher tiered school, in fact, I think my education might have even been better than theirs in many ways.

I remember a friend of mine and I used to gripe all the time about some of these younger freshman coming in that their parents were paying for all their school, and spending money and everything else, as we were drinking a crappy beer. We were lucky to even be able to drink that crappy beer. Both of us worked and tried to save money for whatever we needed at school. And a lot of kids today have better cars than we did, dang my car was from the 70s, my friend's from the 60s. Now they are driving new cars and things like this, where did they get the money for the car but don't have money for their education? Priorities! This is not across the board, I know, but still.

As for unsecure student loans, I have read lots of articles that a lot of people, including doctors with high salaries gave up paying their student debt back because they felt they didn't need to. Now that could be hearsay, I need to search for an article about that, but 10 years ago I heard this. When people give up paying back their loans and nothing happens to them, there is also a problem. Again whose problem is this? Universities? the government? those making loans? Families who didn't think before having kids? Why should the rest of us be burdened by them?

Again, who is going to pay for these kids' student loans? You and I are 20-30 years out from retirement, I will be damned if I am going to have my taxes raised, as I am already targeted by the government not living in the US to pay for all the services you receive, but I can't use one of them. So this is a hot button for me and about 9M other Americans who live abroad but are still forced to pay taxes because we hold the almighty magical blue document everyone keeps telling me I should be lucky to have. Whatever... Sorry not sorry, I have a VERY different view of the US hypocrisy and exceptionalism. As I have seen it first hand what it does. Everything in America has a price, and that is part of the problem.

There are much bigger problems that have to be solved first, if they, whoever you want to think who "they" are (schools, parents, government, banks, etc), they must solve these problems first, which I fear will never be solved, and government will just simply throw money at a problem like they usually do causing bigger problems.

[LivingAlmostLarge]

A lot of this doesn't matter now, incomes are higher than they were when I went to school and a lot of people are opting for two year colleges first before university. Incomes have gone up, tuition has gone up, inflation has gone up, what do you expect? There is a problem with tuitions being high but that is not our fault, that is greedy universities. And actually this younger generation is lazier in many ways, and it has been shown, there are even talk shows about this, but that is parents and teachers fault as these kids were growing up.

I went to school in the late 90s. My parents helped me a little, and had saved some money for the kids when they were younger, not much but some. I also had a scholarship that paid part of my tuition. But regardless if I did not have the scholarship I would have been able to cover the cost from my work, just not been able to afford other things. I had a full time job in the summer, working 40 hours a week and saved almost all of it. That is 3.5 months of full time pay. I had many classmates who also worked. And you choose your school by cost also, not just choosing a school close to home or that has a better program, most of us from my HS went to the same school because of the cost. It's a third tier normal university and I don't feel my education is any less than someone else who went to a higher tiered school, in fact, I think my education might have even been better than theirs in many ways.

I remember a friend of mine and I used to gripe all the time about some of these younger freshman coming in that their parents were paying for all their school, and spending money and everything else, as we were drinking a crappy beer. We were lucky to even be able to drink that crappy beer. Both of us worked and tried to save money for whatever we needed at school. And a lot of kids today have better cars than we did, dang my car was from the 70s, my friend's from the 60s. Now they are driving new cars and things like this, where did they get the money for the car but don't have money for their education? Priorities! This is not across the board, I know, but still.

As for unsecure student loans, I have read lots of articles that a lot of people, including doctors with high salaries gave up paying their student debt back because they felt they didn't need to. Now that could be hearsay, I need to search for an article about that, but 10 years ago I heard this. When people give up paying back their loans and nothing happens to them, there is also a problem. Again whose problem is this? Universities? the government? those making loans? Families who didn't think before having kids? Why should the rest of us be burdened by them?

Again, who is going to pay for these kids' student loans? You and I are 20-30 years out from retirement, I will be damned if I am going to have my taxes raised, as I am already targeted by the government not living in the US to pay for all the services you receive, but I can't use one of them. So this is a hot button for me and about 9M other Americans who live abroad but are still forced to pay taxes because we hold the almighty magical blue document everyone keeps telling me I should be lucky to have. Whatever... Sorry not sorry, I have a VERY different view of the US hypocrisy and exceptionalism. As I have seen it first hand what it does. Everything in America has a price, and that is part of the problem.

There are much bigger problems that have to be solved first, if they, whoever you want to think who "they" are (schools, parents, government, banks, etc), they must solve these problems first, which I fear will never be solved, and government will just simply throw money at a problem like they usually do causing bigger problems.

How much was your schooling? I think it's very difficult. Considering the minimum wage hasn't gone up since 2009 and to afford to pay for college when it's by far outstripped that? I mean to afford it solo without help. It just seems like the system is flawed.

[Fishindude77]

How much was your schooling? I think it's very difficult. Considering the minimum wage hasn't gone up since 2009 and to afford to pay for college when it's by far outstripped that? I mean to afford it solo without help. It just seems like the system is flawed.

Anyone smart enough to get through college should be able to get a job (part time or otherwise) that pays much better than minimum wage.
If they can't the degree probably won't improve their situation much either.

[disneysteve]

Anyone smart enough to get through college should be able to get a job (part time or otherwise) that pays much better than minimum wage.
If they can't the degree probably won't improve their situation much either.

Seriously? It will largely depend on where you go to school. If you're in a big city, getting a decent job might be doable, but if your school is in a small town or rural area, as many of them are, you may not have many choices. Fast food or retail may be all you have to choose from. The job also needs to be easily accessible from campus as many students don't have cars.

[LivingAlmostLarge]

Anyone smart enough to get through college should be able to get a job (part time or otherwise) that pays much better than minimum wage.
If they can't the degree probably won't improve their situation much either.

I actually asked texashusker with two kids in college and he said no way can you work and go to school and pay for it if you weren't living at home. It's so expensive even at state schools that if you were paying for it yourself 100% you wouldn't make enough working full time to cover everything. Okay make $15k/hr and you only make $30k/year. After taxes assume $24k or $2k/month. That's supposed to cover $15k tuition and you live at home maybe for a state school. Not happening if you are at a private college for $30k/year tuition. Or you are living on your own you might not be making it at all.