Posted on 09/18/2023 10:17:33 AM PDT by davikkm
This situation could be quite concerning for several reasons:
Credit Score Damage: When people default on their student loans, it can wreak havoc on their credit scores. This means they’ll have trouble accessing credit in the future for things like buying a home, a car, or even just getting a credit card. It’s like a financial scar that can take years to heal. Financial Instability: Defaulting on loans often leads to financial instability. Borrowers may struggle to make ends meet, and this can impact their overall financial well-being. They might have to put off important life decisions like getting married or starting a family, and that has broader economic implications. Less Money to Spend: As folks grapple with loan defaults, they’ll have less money to spend on goods and services. This reduction in consumer spending can hit local economies hard. Businesses might suffer, leading to potential job losses or slower economic growth. Government Budget Challenges: Most student loans in the U.S. are backed by the federal government. When borrowers default, the government takes a hit. This can strain government budgets and resources, potentially leading to increased taxes or cuts in funding for other important programs. Education Access Concerns: The fear of student loan debt and the risk of defaults may deter some people from pursuing higher education. This could limit opportunities for career growth and affect the skill level of the workforce. Potential Policy Changes: A high rate of student loan defaults might push policymakers to rethink student loan forgiveness programs or other interventions. These changes could have long-term economic consequences, including how we deal with the burden of student debt.
In a nutshell, a significant increase in student loan defaults could have a ripple effect, impacting borrowers’ financial stability, spending habits, government finances, education accessibility.
Arrest the lazyass deadbeats and throw their asses in jail like you did the JaySixers! The Student Loan Deadbeats are inciting an insurrection! Throw Pedo Joe in jail with them for inciting this garbage.
Education Access Concerns: The fear of student loan debt and the risk of defaults may deter some people from pursuing higher education. This could limit opportunities for career growth and affect the skill level of the workforce.
Reality: If you know people who can't pay off their student loans, it means their "education" wasn't worth a crap.
Simple Solution.
All student loans should be backed and guaranteed by the school they attend.
If the loan is not repaid, the school must step up and assume the default.
And as a side benefit - Tuition costs would drop like a rock.
Take it out of their paychecks. If they can do it for child support they can do it for student loans.
Oh no, you mean my degree in Lesbian Dance Theory won’t get me a 100K/year job?
They can’t ‘default’ like with a business loan.
They can not pay, but they can’t make it go away.
They have the right to garnish pay when they are employed, at least it used to say so in the contracts.
They get a damaged credit score, and a debt that follows them forever. You can’t chapter 11 or chapter 13 out of student loans.
Because we have a debt-based, printed, fiat monetary system, “money” is created via creation of debt.
Fed.gov and the Left wanted to promote “education” as a political block and social-engineered “public good.”
What they got was a government-backed, debt-fed upward price-spiral and destroyed standards.
Dear Working Americans....Thanks for the free ride...Am enjoying my vacation in Paris with the money I saved by never repaying my college loan.
The governement does NOT belong in the school loan business....period!
They do realize the IRS will keep taking any tax returns they would have otherwise received until the debt is paid? At least, that is my understanding.
There needs to be a revolution in education. This current system is obviously broken. It’s also the source of the woke beast that needs taming, why do we keep feeding it?
That makes a lot of sense. Regardless, the loans should have never been transferred to the federal gov. That move was unconstitutional to start with.
only a master’s degree in bation theory will get big money in today’s economy.
The way states collect money owned by citizens of other states is to ask that state to pull their driver’s license. I’ve never heard of this being done by the federal government. But if you owe the IRS money, they’ll just take it from your account.
When Congress decided that companies needed to fully fund their retirement plans, they forgot to exempt themselves. Up to that point the companies had used the money that they would have put into the plans for other things. (This is why there is no longer such a thing in the commercial world as a defined benefit retirement plan.) Congress decided that since education loans were almost always repaid that they’d take over the education loan business and use the thirty-year payback to fund the gold-plated government defined benefit retirement plans. Then, politicians began giving loans for degrees that would never offer a payback, like Lesbian Studies. This disconnect between borrowers and the cost of education has directly led to education becoming unaffordable to people who don’t want to spend thirty years in debt. Imagine if you’d bought a $150k house at twenty. The impact of this scheme has been driving inflation and lower home ownership, lower birth rates and a host of social problems. Also, people with Gender Studies degrees are only suitable to work in HR, which has destroyed companies...think Anheuser Busch.
With the recent DACA ruling, I am wondering about “Dreamers” who have large college credit balances? What are they going to do?
Another aspect is that many of those who took out college loans, had parents co-sign those loans. I wonder about the impact an adult child's default will have on their parent that co-signed.
Best solution I've ever heard.
You aren’t working in a bank with a bad credit score. I am sure there are other companies that pull a FICO on applicants.
We’re importing millions of kindergarten dropouts and these clowns are worried about the “skill level” of the “workforce”? ROTFLMAO!
Actually, wouldn’t this be the time to halt the entire program and refuse any new loans? Let the university system figure this problem out.
take it out of their taxreturn...
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