[quote=livinincali][quote=earlyretirement]
These banks and lenders are almost totally protected with the way the laws are set up. And they want to dole out as much as possible.
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Exactly. Quickest way to break the college debt bubble is to allow student debt to be discharged in bankruptcy. Nothing will change the behavior of lenders quicker than having having the prospect of default staring them in the face. Want $100K to go to school better have the grades and major lined up that produces a positive return on investment. The non-charge nature of student loan debt came from a couple of high profile cases of doctors and lawyers declaring bankruptcy right after school and then getting a high paying job shortly after.
If you’re really worried about doctors and lawyers strategically defaulting right after school and then getting a high paying job after the bankruptcy clears then put a special stipulation in for that. You can put some kind of probationary period on the debt being discharged. If you’re income goes up after the bankruptcy during a probationary period (3-5 years) you’ll still be on the hook for some or all of the debt. Nobody is going to wait 3-5 years to start their career just to be able to declare bankruptcy and avoid the college debt.[/quote]
Bingo. Bingo. We have a winner. Totally agree.
[quote=barnaby33]I take umbrage with, “student loans are necessary if you don’t come from a wealthy family.” That doesn’t even pass a basic sniff test, me. I’m po white trash from Valley Center (pronounced with a drawl.) 3 years in JC and 2.5 at Cal State Cap N Crunch and I got a CS degree. I did get some grants, I worked and oh yes, I joined the military.
You don’t have to go to an expensive school. You don’t have to choose a non-remunerative major (though most do) and you don’t have to borrow money. It does make life easier if you want the traditional college experience.
Josh[/quote]
Josh,
First of all, thanks for serving in the military for our country. You make a good point that there are other options but the vast majority of people don’t want to join the military. I too worked during college but I still had to get student loans.
Yes, there are options for Junior college, etc. But I guess the point I wanted to emphasize is the tremendous cost of University these days. And it’s not just special schools that are expensive. Many State Universities when you add up tuition and just cost of living, etc. are $25,000 or more if you’re in-state and out of state is more like $40,000 per year. And these are State Universities.
Yes, there are other options but the main point I wanted to make is the cost of a University education these days.
