Student Loan Crisis

[Larry1423]

How could Austrian Economics solve this crisis, would it emphasizes it through the individual's standpoint. Along with the analysis of opportunity cost for the individual?

[thoughtomator]

Easy solution - allow bankruptcy in student loans to re-introduce discipline in the market and clear bad debts. Get govt out of loan business - and out of the education business.

[ShaneEnochs]

Schools can charge whatever they want because they know the government will keep increasing the amount of loans available to match what they're charging. This wouldn't happen with normal banks offering loans, because not everyone is credit-worthy enough to take out four $10,000 loans.

[jkr]

PLEASE LET ME GO BANKRUPT AND START OVER
I LEARNED MY LESSON

never try to improve yourself with compounded interest
this is all clinton AND double yooos fault

[heavenlyboy34]

Easy solution - allow bankruptcy in student loans to re-introduce discipline in the market and clear bad debts. Get govt out of loan business - and out of the education business.
This seems to be the solution as Austrians like RP have stated publicly. I know RP has talked about the government debt being liquidated so the crisis can play itself out instead of borrowing and inflating in hopes of "recovery".

[heavenlyboy34]

PLEASE LET ME GO BANKRUPT AND START OVER
I LEARNED MY LESSON

never try to improve yourself with compounded interest
this is all clinton AND double yooos fault
I wouldn't go that far. It's also a problem caused by discrimination laws (now you have to get a degree because employers can't test for "intelligence") and the recent cheap money/inflationist era.

[thoughtomator]

I wouldn't go that far. It's also a problem caused by discrimination laws (now you have to get a degree because employers can't test for "intelligence") and the recent cheap money/inflationist era.

Government employers can still test for intelligence, and if you score too high you're disqualified. No, this is not a joke or sarcasm it's actually true.

[kathy88]

I heard one proposal on talk radio a week or so ago. It was not well received by Wilkow. The proposal was to never allow student loan payoffs to be higher than 6 percent of the borrowers gross income. After 20 years the remainder would be forgiven. I could almost swear there's an actual bill about it roaming the hallowed halls in DC.

[Larry1423]

I heard one proposal on talk radio a week or so ago. It was not well received by Wilkow. The proposal was to never allow student loan payoffs to be higher than 6 percent of the borrowers gross income. After 20 years the remainder would be forgiven. I could almost swear there's an actual bill about it roaming the hallowed halls in DC.

I think that's called "The Student Loan Forgiveness Act of 2012".

[thoughtomator]

I heard one proposal on talk radio a week or so ago. It was not well received by Wilkow. The proposal was to never allow student loan payoffs to be higher than 6 percent of the borrowers gross income. After 20 years the remainder would be forgiven. I could almost swear there's an actual bill about it roaming the hallowed halls in DC.

Too complicated and requires too much bureaucracy to manage, and it interferes with private citizens' ability to enter into voluntary contracts.

Bankruptcy is the legal process that was created to deal with unmanageable debts. It has hundreds of years of success to support the idea that it is the right way to deal with that problem. It is also specifically cited in the Constitution as one of the few responsibilities assigned to Congress.

[kathy88]

Too complicated and requires too much bureaucracy to manage, and it interferes with private citizens' ability to enter into voluntary contracts.

Bankruptcy is the legal process that was created to deal with unmanageable debts. It has hundreds of years of success to support the idea that it is the right way to deal with that problem. It is also specifically cited in the Constitution as one of the few responsibilities assigned to Congress.yeah for the record I think it's awful.

[Larry1423]

If an individual wanted to file bankruptcy for student loans, what chapter would it be under the bankruptcy laws? 7/9/11/13?

[heavenlyboy34]

Government employers can still test for intelligence, and if you score too high you're disqualified. No, this is not a joke or sarcasm it's actually true.
I've heard of this but never looked into it. LOLZ. :D If they started making some sort of competency test for congress/POTUS/SCOTUS, I betcha hardly anyone would qualify. :D

[thoughtomator]

Court OKs barring high IQs for cops

http://abcnews.go.com/US/court-oks-barring-high-iqs-cops/story?id=95836

[No Free Beer]

forgive all loans.

now.

http://i.imgur.com/swr6V.gif

[heavenlyboy34]

forgive all loans.

now.
Be forewarned: LE will lecture you a while on this.

[No Free Beer]

no, but in all seriousness, I called Peter Schiff and he thinks a "bailout" is coming.

And soon.

[No Free Beer]

Be forewarned: LE will lecture you a while on this.

I love reading Liberty Eagle's posts.

I welcome the discussion.

[heavenlyboy34]

Court OKs barring high IQs for cops

http://abcnews.go.com/US/court-oks-barring-high-iqs-cops/story?id=95836
ZOMG, LOL!! I couldn't do better if I were trying to write a satire about this. :D People are so fucking stupid in the world anymore...it's making good satire difficult. :/

[heavenlyboy34]

I love reading Liberty Eagle's posts.

I welcome the discussion.
There's a college loan bailout thread around here somewhere...at least one forum survey and debate I know of.

[No Free Beer]

There's a college loan bailout thread around here somewhere...at least one forum survey and debate I know of.

Any and every government student loan should be wiped.

[heavenlyboy34]

Here's the other thread on this topic I was recalling: http://www.ronpaulforums.com/showthread.php?384133-debt-forgiveness-question/page2&highlight=student+loan Some interesting points brought up in there, IMO.

[KrokHead]

Government employers can still test for intelligence, and if you score too high you're disqualified. No, this is not a joke or sarcasm it's actually true.

In New York scoring higher on a civil service test makes it easier for you to be interviewed/hired. If you score too low you can't be "reached". One episode of Michael Moore's "The Awful Truth" (the wonderlick one) and everyone thinks that they purposely hire stupid people.

[Seraphim]

It's a crime that student loans (Federal loans) are not dischargeable through bankruptcy. Nothing short of a crime.

[shane77m]

I wish my wife could bankrupt on her Sallie Mae loans. I am hoping for a collapse and some debt being wiped clean.


I guess a guy can dream.

[heavenlyboy34]

It's a crime that student loans (Federal loans) are not dischargeable through bankruptcy. Nothing short of a crime. yYou can thank your federal government for that-colluding with the loan industry and making up bullshit discrimination laws (which, as usual, had the opposite effect of the intent). :p