In all seriousness, I think the the most fair things to do about student debt are the following:
Keep interest rates very low. It can be done for homes... no reason not to do it here.
If there is forgiveness, forgive accrued interest up until this point. Don't just forgive some arbitrary blanket amount. Even if this meant sending checks to people for accrued interest forgiveness they "missed out on," I still think this would be preferable to just saying blanket "$50k is forgiven."
Finally, make student loans dischargeable in bankruptcy, like every other kind of debt. This would force a look at how reasonable (or unreasonable) the amounts being loaned are, and would probably also force a look at the value of the actual degree. It would force thought on "will the degree actually pay this debt"?
Force tge booody colleges to actually pay for this shit. Colleges have more bureaucrats trying to make kids comfortable than profrssors these days anyhow.
Stop issuing student loans, period. Colleges will have to cut the propaganda programs and fire the commie professors teaching front-hole hair grooming, and tuition will drop drastically. It's a massive money-laundering racket.
Public colleges should just have a funding option that depends on them getting a percentage of the students income for 8 years after graduation. Produce excellent students and place them in great jobs then your school explodes. Produce purple hair starbucks workers and you are lucky to even have a school.
Good way to inject a bit more competition into the process while still having a way for people to access higher skilled disciplines.
"Keep interest rates very low. It can be done for homes."
Homes are appreciating assets, fixed in place. This lowers risk, and interest rates.
Kids with $100k in debt and a Social Justice degree are depreciating assets with a flight risk. High rates are well justified. If you want to borrow money cheaply, don't borrow as a member of a high-risk pool.
When you buy a car, it loses value once you drive it off the lot. Why do old homes go up in value? Scarcity and supply/demand doesn't explain this phenomenon.
This is one of the oldest banking rackets around, and it's blatant wealth transfer in this never-ending class warfare where the rich use the the government to enrich themselves.
Old houses usually go up in value because the land they sit on gets more valuable , they retain utility, and the labor and materials to replace go up in value. The land often becomes more valuable because the income one can generate nearby has increased over time, or a more pleasant environment has been created, often through investments made by others.
The average car depreciates because it has a very finite service life which is consumed over time and distance, millions of similar or better make are built each year, and the utility decreases as its reliabilty comes into question at some point.
You're making a case for inflation in general, but not for how housing prices dramatically outpace overall inflation. I suggest it would not absent government intervention, or at least not to the same degree.
That government intervention clearly benefits certain businesses and the wealthy.
While I mostly agree with you, there’s another point here. Banks vet the shit out of you for a mortgage because they are not usually in the business of dealing with the real estate you leave behind if you default on your mortgage. It’s. Collateral, yes. Students who default in massive loans don’t have the collateral.
DUMP THE LOANS ONTO THE PRIVATE MARKET ALONG WITH TUITION CLAWBACKS FROM THE UNIVERSITIES, REMOVE THE BLOCKS AGAINST BANKRUPTCY PROTECTION, AND ALLOW LAWSUITS FOR WORTHLESS DEGREES - the free market and the legal shitshow will handle the rest as the institutions and loan holders realize they can either settle for something reasonable or pay the price for running their feminist degree mill scams.
In all seriousness, I think the the most fair things to do about student debt are the following:
Keep interest rates very low. It can be done for homes... no reason not to do it here.
If there is forgiveness, forgive accrued interest up until this point. Don't just forgive some arbitrary blanket amount. Even if this meant sending checks to people for accrued interest forgiveness they "missed out on," I still think this would be preferable to just saying blanket "$50k is forgiven."
Finally, make student loans dischargeable in bankruptcy, like every other kind of debt. This would force a look at how reasonable (or unreasonable) the amounts being loaned are, and would probably also force a look at the value of the actual degree. It would force thought on "will the degree actually pay this debt"?
Force tge booody colleges to actually pay for this shit. Colleges have more bureaucrats trying to make kids comfortable than profrssors these days anyhow.
Stop issuing student loans, period. Colleges will have to cut the propaganda programs and fire the commie professors teaching front-hole hair grooming, and tuition will drop drastically. It's a massive money-laundering racket.
Public colleges should just have a funding option that depends on them getting a percentage of the students income for 8 years after graduation. Produce excellent students and place them in great jobs then your school explodes. Produce purple hair starbucks workers and you are lucky to even have a school.
Good way to inject a bit more competition into the process while still having a way for people to access higher skilled disciplines.
"Keep interest rates very low. It can be done for homes."
Homes are appreciating assets, fixed in place. This lowers risk, and interest rates.
Kids with $100k in debt and a Social Justice degree are depreciating assets with a flight risk. High rates are well justified. If you want to borrow money cheaply, don't borrow as a member of a high-risk pool.
"Homes are appreciating assets, fixed in place"
Would they be absent government incentives?
When you buy a car, it loses value once you drive it off the lot. Why do old homes go up in value? Scarcity and supply/demand doesn't explain this phenomenon.
This is one of the oldest banking rackets around, and it's blatant wealth transfer in this never-ending class warfare where the rich use the the government to enrich themselves.
Old houses usually go up in value because the land they sit on gets more valuable , they retain utility, and the labor and materials to replace go up in value. The land often becomes more valuable because the income one can generate nearby has increased over time, or a more pleasant environment has been created, often through investments made by others.
The average car depreciates because it has a very finite service life which is consumed over time and distance, millions of similar or better make are built each year, and the utility decreases as its reliabilty comes into question at some point.
You're making a case for inflation in general, but not for how housing prices dramatically outpace overall inflation. I suggest it would not absent government intervention, or at least not to the same degree.
That government intervention clearly benefits certain businesses and the wealthy.
There is no shortage of land in this country.
While I mostly agree with you, there’s another point here. Banks vet the shit out of you for a mortgage because they are not usually in the business of dealing with the real estate you leave behind if you default on your mortgage. It’s. Collateral, yes. Students who default in massive loans don’t have the collateral.
Very solid point!
DUMP THE LOANS ONTO THE PRIVATE MARKET ALONG WITH TUITION CLAWBACKS FROM THE UNIVERSITIES, REMOVE THE BLOCKS AGAINST BANKRUPTCY PROTECTION, AND ALLOW LAWSUITS FOR WORTHLESS DEGREES - the free market and the legal shitshow will handle the rest as the institutions and loan holders realize they can either settle for something reasonable or pay the price for running their feminist degree mill scams.
On point #3, that's what the free market did before Obama got the gov't involved in student lending.
Also, if you're going to forgive student debt, the money should come from the ones who overcharged them for useless degrees.
Student loans haven't been dischargeable in bankruptcy since 1976. Since then, it's been an exponential "to the moon" with tuition prices.
Agreed, and the slope increased dramatically under Obama.
Yes it did.
Nah man, that was Bush.