(06-26-2019, 07:08 PM)mikesez Wrote: [ -> ] (06-26-2019, 08:16 AM)The Real Marty Wrote: [ -> ]I have a much more elegant solution. Get the government out of the student loan business. If we do that, then lenders will be much more careful whom they lend to, and for what courses. Colleges will be forced to control their expenses and tuition rates, or they won't have any students.
That's a good red meat motto, but it exposes ignorance of the fact that the government is necessarily involved in every type of loan.
If someone fails to pay up, the lender must call on a judge to force them to pay up. This is true of primitive and modern societies.
All I'm trying to discuss is the guidelines that the judge should use when he or she is called on.
Ref
Playcaller
See how the terms are different?
Government intervention CAUSES inflation. For deflation you need competition based on price and consumers finding alternative sources of the good or service in question. In reality we need to abanfon the idea that everyone needs to go to a 4 year brick and mortar institution to advance their education. Certifications for some fields and otj training for blue collar professionals.
(06-28-2019, 07:32 AM)jj82284 Wrote: [ -> ] (06-26-2019, 07:08 PM)mikesez Wrote: [ -> ]That's a good red meat motto, but it exposes ignorance of the fact that the government is necessarily involved in every type of loan.
If someone fails to pay up, the lender must call on a judge to force them to pay up. This is true of primitive and modern societies.
All I'm trying to discuss is the guidelines that the judge should use when he or she is called on.
Ref
Playcaller
See how the terms are different?
Government intervention CAUSES inflation. For deflation you need competition based on price and consumers finding alternative sources of the good or service in question. In reality we need to abanfon the idea that everyone needs to go to a 4 year brick and mortar institution to advance their education. Certifications for some fields and otj training for blue collar professionals.
Everything you're saying in bold is right, describing what has recently happened in this specific case. I'm not sure what you mean with what you wrote before that.
I'm just saying that the rules on student loans should make the student repay based on their income for a number of years. And the institution should be held liable for any shortfall.
If the government follows this advice,
- all colleges and universities will be more careful about who they admit. they will want to make sure everyone they admit is likely to finish.
- colleges will cut back on programs that don't lead to careers with good salaries.
- fewer people attend formal post secondary education, less demand
- costs will reduce, in other words, deflation.
(06-27-2019, 04:17 PM)StroudCrowd1 Wrote: [ -> ] (06-27-2019, 02:19 PM)TrivialPursuit Wrote: [ -> ]Easy solution.
Stop marriage tax breaks.
Marriage produces future tax payers. Never going to happen.
I thought copious amounts of unprotected sex did that.
Most kids are born out of marriage so... next
Just doesn't make sense to reward people for being dumb enough to sign a contract with the government about love.
The problem with the government getting out of student loans is this...My cousin who I have a mutual distaste for, refinanced his government backed student loan with a private company. The private company paid off the goverment backed loan and issued a new loan. The new loan is not backed by the government and can be discharged through chapter 7 or 13 bankruptcy as un unsecured debt. One the original loan is paid, the original government backed loan is paid and the private loan company assumes an un secured loan like a credit card debt. I didnt believe it until he showed me the chapter 13 discharge papers showing all his unsecured debt gone like he never had it
When we were smart enough to realize that the Traditional Nuclear Family is the bedrock of our society and didn't go out of our way to subsidize Bastardry it most certainly did.
(06-28-2019, 11:51 AM)wrong_box Wrote: [ -> ]The problem with the government getting out of student loans is this...My cousin who I have a mutual distaste for, refinanced his government backed student loan with a private company. The private company paid off the goverment backed loan and issued a new loan. The new loan is not backed by the government and can be discharged through chapter 7 or 13 bankruptcy as un unsecured debt. One the original loan is paid, the original government backed loan is paid and the private loan company assumes an un secured loan like a credit card debt. I didnt believe it until he showed me the chapter 13 discharge papers showing all his unsecured debt gone like he never had it
I don't know how he would get away with something like that. The company that assumed the loan must have required him to fill out an application showing that he was able to pay back the loan. How did he manage to declare bankruptcy?
(06-28-2019, 01:54 PM)The Real Marty Wrote: [ -> ] (06-28-2019, 11:51 AM)wrong_box Wrote: [ -> ]The problem with the government getting out of student loans is this...My cousin who I have a mutual distaste for, refinanced his government backed student loan with a private company. The private company paid off the goverment backed loan and issued a new loan. The new loan is not backed by the government and can be discharged through chapter 7 or 13 bankruptcy as un unsecured debt. One the original loan is paid, the original government backed loan is paid and the private loan company assumes an un secured loan like a credit card debt. I didnt believe it until he showed me the chapter 13 discharge papers showing all his unsecured debt gone like he never had it
I don't know how he would get away with something like that. The company that assumed the loan must have required him to fill out an application showing that he was able to pay back the loan. How did he manage to declare bankruptcy?
Because the original loan backed by the government was paid off by the private loan company and othan the promissory note there is nothing securing the loan (since the original government backed loan was paid by the private lender when he bought the loan to refinance) the new loan became unsecured. At the he refinanced the loan he had good credit but a few years later a nasty divorce came and bankruptcy followed
(06-28-2019, 08:38 PM)MalabarJag Wrote: [ -> ] (06-28-2019, 01:54 PM)The Real Marty Wrote: [ -> ]I don't know how he would get away with something like that. The company that assumed the loan must have required him to fill out an application showing that he was able to pay back the loan. How did he manage to declare bankruptcy?
Any loan from a private company is subject to bankruptcy laws.
If a private company is willing to take on the risk of a loan repayment, I have no problem with that. I do have a problem with our tax dollars going to overpriced institutions. I agree with Mikesez, the college should be the party that gets stiffed if a government loan (or private loan guaranteed by the government) is not repaid.
But the original loan WAS paid when the private loan company bought it from the government backed lender to refinance it. There are many private lenders who will refinance student loans
(06-28-2019, 01:54 PM)The Real Marty Wrote: [ -> ] (06-28-2019, 11:51 AM)wrong_box Wrote: [ -> ]The problem with the government getting out of student loans is this...My cousin who I have a mutual distaste for, refinanced his government backed student loan with a private company. The private company paid off the goverment backed loan and issued a new loan. The new loan is not backed by the government and can be discharged through chapter 7 or 13 bankruptcy as un unsecured debt. One the original loan is paid, the original government backed loan is paid and the private loan company assumes an un secured loan like a credit card debt. I didnt believe it until he showed me the chapter 13 discharge papers showing all his unsecured debt gone like he never had it
I don't know how he would get away with something like that. The company that assumed the loan must have required him to fill out an application showing that he was able to pay back the loan. How did he manage to declare bankruptcy?
Ahhhh I think I see where you are comimg from...The private company BOUGHT the loan. They did not assume the loan. Much like debt collectors who buy debts the original debt is paid off and a new debt is made. In this case a private student loan refinancing company BOUGHT the loan, paid off the original creditor, and gave him a brand new loan which other than the promissory note becomes an unsecured loan
(06-28-2019, 11:52 PM)flsprtsgod Wrote: [ -> ] (06-28-2019, 10:26 PM)americus 2.0 Wrote: [ -> ]You suck dude.
![[Image: tenor.gif]](https://media1.tenor.com/images/f6a9e86b4883759c70162b8f103976cd/tenor.gif)
.gif "Laughing")
About as much as a pair of scratchy wool underwear infested with chiggers. Lololol
![[Image: giphy.gif]](https://media.giphy.com/media/kilEsmm7DHKU/giphy.gif)