Cancel Student Loan Debt to Stimulate the Economy

[quigleydoor]

Readers might find this blog interesting.

The House Judiciary Subcommittee held a hearing a few days ago about the possibility of introducing legislation that would allow borrowers to discharge private loan debt in bankruptcy. As many of you were already aware, your fierce advocate was in attendance. . . .

http://alleducationmatters.blogspot....committee.html

This fierce advocate connects to various other parties, such as The Institute For College Access and Success, who are trying to get a social movement going.

[rj1]

Re: Cancel Student Loan Debt to Stimulate the Economy

Readers might find this blog interesting.



http://alleducationmatters.blogspot....committee.html

This fierce advocate connects to various other parties, such as The Institute For College Access and Success, who are trying to get a social movement going.

Not going to happen. All the colleges are not in good financial shape anyway and they'll call up every senator or congressman from their state to not make it any worse, especially when most of them are public.

[ricket]

Re: Cancel Student Loan Debt to Stimulate the Economy

Not going to happen. All the colleges are not in good financial shape anyway and they'll call up every senator or congressman from their state to not make it any worse, especially when most of them are public.

Wasnt most of the underwriting done by either banks (ie Citibank) or the Federal Government??

[lsa420]

Re: Cancel Student Loan Debt to Stimulate the Economy

Wasnt most of the underwriting done by either banks (ie Citibank) or the Federal Government??

I think almost all of the underwriting is now being done by Sallie Mae. My understanding is that the private student loan market is dead, along with the rest of the securitized debt markets.

[jacobdcoates]

Re: Cancel Student Loan Debt to Stimulate the Economy

Darn, I was hoping to get out of my 3.12% student loan. Thanks for getting my hopes up.

[quigleydoor]

Re: Cancel Student Loan Debt to Stimulate the Economy

Not going to happen. All the colleges are not in good financial shape anyway and they'll call up every senator or congressman from their state to not make it any worse, especially when most of them are public.

My point is, the indebted, young, under-employed aspirants are feeling ripped off. Some of them no longer believe their economic fate is the result of individual failings. They are beginning to realize there is a systemic problem with education finance. They are starting to get organized and participate in the legislative process. I don't know if they have a chance. Just pointing out that grassroots are forming on this idea.

[sunskyfan]

Re: Cancel Student Loan Debt to Stimulate the Economy

You know I want to have sympathy but the facts are ... I worked my ass off to not have student loan and put off buying a house to get my ex-wife's paid off. I haven't had my 18 year old son take a loan so he is not burdened with debt and I am paying for his school out-of-pocket. I also refused to join the ponzi scheme housing market back in 2001. I ALSO didn't buy in to the Wall Street 401k BS and have invested my money elsewhere in my life. However, I am the one getting screwed. If they forgive the student loan debt America would be further down the moral hazard whole than it already is.

When. When! will policy decisions be made to help the people who made the right choices? When is that going to be our litmus test?

We are so screwed!

[vinoveri]

Re: Cancel Student Loan Debt to Stimulate the Economy

[quote=sunskyfan;127311]

You know I want to have sympathy but the facts are ... I worked my ass off to not have student loan and put off buying a house to get my ex-wife's paid off. I haven't had my 18 year old son take a loan so he is not burdened with debt and I am paying for his school out-of-pocket. I also refused to join the ponzi scheme housing market back in 2001. I ALSO didn't buy in to the Wall Street 401k BS and have invested my money elsewhere in my life. However, I am the one getting screwed. If they forgive the student loan debt America would be further down the moral hazard whole than it already is.

When. When! will policy decisions be made to help the people who made the right choices? When is that going to be our litmus test?

I hear you brother.
Don't kick yourself for your past decisions which are based on common sense, but do look at the world going forward for what it is, not what it ought to be.

Now that we know the government steals our savings and wildly redistributes wealth beyond what we ever imagined...(and unfortunately IMO, we are not going to be able to change this), what do we do to protect ourselves and families finances, using laws and system to our advantage without compromising with our integrity?

It may not be an easy answer, but I for one am done sitting on my hands with my jaw on the floor.

Cheers!

[BadJuju]

Re: Cancel Student Loan Debt to Stimulate the Economy

Regardless of whether or not they offer debt forgiveness, loans will be much easier to repay in the future because of inflation. I hedged my bets on it by getting student loans to buy stuff I need now that will cost much more in the future or simply be unavailable. And I believe it will work out well.

[sunskyfan]

Re: Cancel Student Loan Debt to Stimulate the Economy

So the new have and have-nots is not about resources it is about integrity?

[vinoveri]

Re: Cancel Student Loan Debt to Stimulate the Economy

not sure of the point you are trying to convey ...but for me anyway it's always about personal integrity (at least that's the goal).

[sunskyfan]

Re: Cancel Student Loan Debt to Stimulate the Economy

You and I are in total agreement.

I think the fact of the matter is that the social contract that we live by was totally ruptured last fall. Until this is healed there will be no recovery.

[Casual Observer]

Re: Cancel Student Loan Debt to Stimulate the Economy

If the big players (gov't and corporate alike) couldn't play games with their revenue and had to eat their losses instead of getting it redistributed to the taxpayers, then even though things would still be the same, they wouldn't result in such severe consequences.

Leverage is bull held by the tail.

[we_are_toast]

Re: Cancel Student Loan Debt to Stimulate the Economy

Simple solution;

Amortize the debt based on income, tied to the tax rates. The more you make, the more you pay, until it's payed off. Everyone should have equal access to an advanced education. The social and economic benefits of having a well educated public are enormous. It's one of the best investments a country can make.

[sunskyfan]

Re: Cancel Student Loan Debt to Stimulate the Economy

I have NO issue with everyone having access to any education. But, don't pretend it is a financial decision nor treat it like one. You can't fight gravity. You can't loan money for something that does not have collateral. It just doesn't work.