[HN Gopher] Dept. of Ed cancels $3.9B in student debt for over 2...
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Dept. of Ed cancels $3.9B in student debt for over 200k borrowers
Author : latchkey
Score : 22 points
Date : 2022-08-16 18:55 UTC (4 hours ago)
(HTM) web link (www.cnbc.com)
(TXT) w3m dump (www.cnbc.com)
| balentio wrote:
| Great. Now apply it to all the other colleges who marketed
| themselves as money making for students and an "investment" only
| to saddle them with unforgivable student loan debt.
| verdverm wrote:
| Does that fix the problem? Will the universities still be
| allowed to keep doing this and thus create another generation
| of indebtedness?
| balentio wrote:
| No. The problem is greed. I'm not sure what fixes that, other
| than usually tragedy.
| jmoak3 wrote:
| At scale, everyone looks out for #1, and kids have a
| tendency to be a little naive.
|
| I'm no expert, but it sounds like the problem is that we
| keep giving gov-backed money to kids to spend at schools
| who are telling them that paying 120k to be a history major
| is an excellent idea.
|
| These schools are not their friends, and if we want to fix
| this, it feels like we have several choices:
|
| A. Dictate to kids which programs they can get easy loans
| for.
|
| B. Punish schools that produce tons of screwed over
| indebted kids, and hope they begin to downsize programs and
| costs.
|
| C. Cut out the easy loans altogether, let schools fail, and
| see what happens.
|
| D. Keep forgiving debt, and watch as angry people who
| avoided college and the loans vote in radical politicians
| with axes to grind.
|
| Maybe we could see schools move to some sort of income
| sharing program, but I'm somewhat confident we'd soon see
| schools getting kids to sign on deals that are wildly
| exploitative (like 20 years of 10% of income sharing with
| the school...).
|
| I know it sucks, but this whole situation sucks - I'm
| leaning towards A.
|
| Open to more discussion on this.
| verdverm wrote:
| My hunch is that the underlying problems are
|
| 1. Easy, govt backed loans allow the schools to raise
| prices without reducing demand
|
| 2. Most of this extra revenue is not spent on academics,
| but rather admin staff, new student housing / amenities,
| and loss centers like sports
|
| 3. Students choosing paths that cannot pay back the debt
| they take
|
| I think all parties have blame to share, though the
| schools maybe the most through their exploitive practices
|
| I'm hopeful that new learning paths will emerge so that
| people can find meaningful, sustaining work without the
| traditional 4 year degree
| balentio wrote:
| The simple solution would be to make the debt
| hypothetically discharge-able again and to get the
| government bubble of money out of the picture of higher
| education. I suspect the market would mostly regulate
| itself at that point, but then you get into the whole
| "not equal opportunity" crap. I hate to say it, but it
| isn't equal now. You trade proportions of colors of
| students for everyone has a degree, no one has a job, and
| everyone is in debt.
| foxyv wrote:
| Great, now make all student debt dischargeable in bankruptcy. Too
| many people end up deeply in debt with degrees that don't do what
| was promised. Especially the trade schools! ITT Tech, Silver
| State Helicopter, Culinary Schools, and all sorts of garbage
| private schools are taking advantage of people who were told to
| get an education at all costs.
|
| Right now we already "socialize the downside" for all sorts of
| debt. I don't honestly know why student debt is any different.
| westmeal wrote:
| Because a lot of large organizations stand to make a lot of
| money! :D
| dominotw wrote:
| are you saying they don't stand to make a lot of money on
| other kinds of debts.
| ffggvv wrote:
| public_defender wrote:
| This is only for people who attended ITT Tech.
| cuteboy19 wrote:
| Debt cannot be cancelled, only transferred.
| guywithahat wrote:
| Yeah this title doesn't really make sense, and seeing as ITT
| Tech is now defunct it looks as though taxpayers (funded with a
| new 1.9 billion dollar funding allocation) will be picking up
| the tab, and people who worked hard and paid off their loans
| early won't be seeing anything.
|
| I feel like a much better option would have been to make loans
| private and defaultable (so that if you get a loan it's not
| government money, and if you plan to get a worthless major
| private banks can simply charge you more for your loan or even
| refuse to give loans for a certain degree). ITT Tech was known
| to be a bad school for a long time and this would have been
| preventable through a freer market
| Blackstrat wrote:
| supercanuck wrote:
| I had no idea ITT Technical Institute (ITT) was in the Ivy
| league.
| Blackstrat wrote:
| I'm betting the majority loans are not to ITT
| BugsJustFindMe wrote:
| The article addresses your bet in the first and second
| sentences.
| electric_dreams wrote:
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