Quote (Djunior @ 29 Nov 2020 13:32)

Students make a decision to take out loans because they reason they'll be smarter and better off than the plebs that are working ordinary jobs and then start complaining they have to pay the fucking loans back??

Grow a fucking spine ffs

Quote (SBD @ 29 Nov 2020 15:02)

That's why I don't see it working and why a set subsizied cost structure in the future should be implemented. People will complain who currently have loans but that's the case with any policy change that favours something that wasn't in the past. There will always be a group that gets the shaft.

Straight forgiving debt or having people know their debt will be forgiven compeltly ignores others efforts. I worked the entire time during school, some of my friends had 2 or 3 jobs at once. Meanwhile you had those other people just attending school after their morning wake and bake. Or attending school and saying they can't work because they have 70 to 80 hours of school per week, meanwhile they have 4 to 5 extra hours everyday.

I think not only should you have to pass to get subsidized tuition you should have to maintain a certain grade average.

For Canadian university you could just get on the deans list and recieve decent scholarships. I only had to maintain above a 3.6 GPA for instance and it covered over 1/2 of tuition per semester.

Quote (Skinned @ 29 Nov 2020 15:48)

It would free up the highest earners to spend their fucking money instead of it going back into the savings of the 1%.

The bump in aggregate expenditure would be incredible. Imagine Millennials not being crushed by debt!

Quote (Djunior @ Nov 29 2020 12:32pm)

Students make a decision to take out loans because they reason they'll be smarter and better off than the plebs that are working ordinary jobs and then start complaining they have to pay the fucking loans back??

Grow a fucking spine ffs

Quote (Black XistenZ @ Nov 29 2020 11:40am)

THAT'S THE POINT!!! :)

With capped repayment rates, the banks would eat the losses from those individuals which end up unemployed or low income. If the share of graduates from a field or a university who end up underperforming this way becomes too high, it becomes unprofitable for the bank to provide loans for this degree/college altogether. Which leads to a collapse in enrollment, which leads to the college lowering the tuition for the program (or scrapping it altogether).

Conversely, the higher the tuition and thus the loans for a particular degree are, the higher the implied break-even-average-graduate-salary.

If the repayment rate is tied to income and capped at a very workable level, the absolute amount of debt is largely irrelevant for the individual, he's guaranteed not to be crushed or drawn into bankruptcy by it. The debt becomes his bank's problem.

Quote (Djunior @ Nov 29 2020 01:32pm)

Students make a decision to take out loans because they reason they'll be smarter and better off than the plebs that are working ordinary jobs and then start complaining they have to pay the fucking loans back??

Grow a fucking spine ffs

Quote (Thor123422 @ 29 Nov 2020 22:13)

Oh that explains it. You don't realize that in the United States student loans are guaranteed by the government, so banks have no incentive to do that. The loans being guaranteed is why the interest rate is 5% and not 25%

Quote (Black XistenZ @ Nov 29 2020 04:19pm)

Oh lol, so government meddling with the free market is indeed causing the distorted and inflated prices of higher education. Basically, colleges can get away with ridiculous tuition rates because the government is socializing the risk involved with ballooning student loans.
Libertarians are probably having a field day reading our discussion. :rofl:

But yeah, perhaps education is a field where a middle of the road approach doesnt work and you either have to go with the libertarian, proper free market approach, or with the fully state-funded European model.

Quote (Thor123422 @ 29 Nov 2020 23:27)

The thing is we already know the libertarian model doesnt work, and we know that the heavy handed government model does.

The libertarian model is one with child labor and company towns and schools. The government model is... Basically everywhere except the United States. The U.S. model is, id say, the corporatist model. Like healthcare where its focussed on channeling as much of the citizens money into corporate pockets.