http://www.forgivestudentloandebt.com/content/student-loan-forgiveness-act-2012-hr-4170-bill-textSo is there something about this Bill that I'm missing? Because it seems too good to be true.
It'll never happen. Banks own the government, and they like owning the American people too. They have stopped every student loan forgiveness bill and this one willb e no exception.
OMG deflation!
>>5114417Unfasten the chains we've riveted around the necks of our children?!NEVER!
No! Free education is wrong and socialist!
Does that mean those of us who didn't go to college can get forgiveness on business loans or mortgages? It would seem fair.
OP has never heard about the securitization of debt.That student debt has been bundled up and sold by bankers as investments. Mutual funds, pensions, etc. all have substantial amounts of student debt on their books. If this debt is forgiven, expect economic collapse on a scale at least as bad as the sub-prime mortgage crash.
>>5114579>>5114610I mean, it sounds pretty good. And the text behind the bill seems fairly legit. But it just seems like the short of it makes for something so good, that a Catch 22 has to be in there somewhere.
>>5114640The catch is that another credit crisis would result from bankers using student loans as an investment vehicle.
Massive losses of capital for banks, most of whom have lent out further liabilities based on those assets, that would be very harmful to the banking industry and likely cause either a lot of people to lose some of their savings or require another multi billion dollar government bailout, as well as the loss of most of the jobs in the student loan industry and new student loans becoming either extortionately high rate or unavailable to poor students.
>>5114633This. Until 2008 most student loans have ended up being guaranteed or owned by the private sector, even government loans. For these loans to have a massive credit default event, like the one proposed in this socialistic bill, a lot of people would have to be compensated or we would be robbing investors to pay for some dumb bitch's feminism degree.
After It Happens you won't have any debt to worry about.
>Student sign contract>Decide later that the contract sucks>"OMG Muh education!If this goes through, it's a fucking AWFUL precedent. These idiots knew what they were getting into, let them live, or die, with it.
>>5114664This. Sink or swim, faggots.
>>5114633It's too late. All is lost. If we try to fix the loans won't get paid and the economy collapses. If we ignore it people can't pay their bills and loans and economics collapse happens.
>>5114686Fucking greedy students robbed our deposits.
>>5114625>implying youve taken out loans to build a business and got a mortgage and havent mostly been sitting around fapping on 4chan since highschool
>>5114695Serious implications there friend, why should students get special treatment?
>>5114689Fucking greedy investors put all their money in risky debt for a slightly higher interest rate than normal stocks and bonds provide.
Screw that, I want to see interest rates on student loans rise even more.
>>5114714>ImplyingThose students promised to pay whey are you making this about the bankers when the students are the ones who are ripping people off?
>>5114417> (4) Total outstanding student loan debt officially surpassed total credit card debt in the United States in 2010, and is on track to exceed $1,000,000,000,000 during 2012.Is that a trillion dollars, how the fuck did you manage that America?
>>5114625Your argument is a logical fallacy that buys into the standard "let's get the plebs to fight amongst themselves" line of bullshit pushed by the media, government, banks, etc. who cake up off us all.Unrelenting student debt =/= mortgage/business loansNot to mention business loans have protections built into them that shield the borrower from liability (Chapter 11) and mortgage loans got their fancy government handout in the form of retroactively lowering interest rates, extending the life of loans, and lowering the principle. Mortgage/business loans also have shit load of tasty, tasty treats if you know anything about taxes.And in the worst case, you can walk away from mortgage/business loans (see all the Baby Boomers who fucking destroyed the country for all us Generation X and Y'ers who are simply demanding our fucking taste).
>>5114417>is there something about this Bill that I'm missing?Yes: Its 0% chance of passing the House or Senate.You have to understand that for Republicans, debt relief is something we only offer to the poor oppressed rich people so they can create jobs, not to the middle and lower classes. If we give regular people relief, they'll just buy food and clothes and pay their rent with it. Giving it to rich people gets us innovative financial services, and reality TV shows with Donald Trump and Kardashian sisters.So do you see why this kind of nill can't be allowed to pass?
>>5114747>And in the worst case, you can walk away from mortgage/business loans (see all the Baby Boomers who fucking destroyed the country for all us Generation X and Y'ers who are simply demanding our fucking taste).You can't go bankrupt on student loans?
>>5114781Your taste of overpriced education getting a degree that makes you no more employable? Excuse me while I cry silent tears of joy at libturds' failing early in life.
>>5114710>Serious implications there friend, why should students get worse treatment than businesses and homeowners?FTFY. Businesses can gain bankruptcy protection, homeowners can go into foreclosure, only students are trapped with their debts in perpetuity.I've read some of the bill. It mostly just caps the interest rate chargeable, and provides a framework for making minimum affordable payments that won't put the student too far into poverty, with a possible write off after 10 years of making payments.It doesn't fix the fact that education is overly emphasised and stupidly expensive in the US, that's a seperate problem that needs its own solution.
>>5114781It's virtually impossible to discharge student loan debt. A more viable option would be to bank on winning the lottery.
>>5114633So basically we get to blame the banks again?
>that feel when 100k in student loan debt for a liberal arts degree>yeah, seriously. I'm fucked.
Why does nobody ever get mad at the schools? THEY are the ones charging outrageous prices for an education -- many of them while banking so much from their fucking endowments that they have no excuse for charging tuition at all.
>Government passes bill forcing lending institutions to forgive student loans>Lending institutions are financially gutted>Future lenders, fearing another round of politically popular debt forgiveness, raise interest rates to ridiculously high levels to compensate for potential losses>Richer students are the only ones able to service their student debt>Poorer students cannot secure a loan and thus cannot get an education>Gap between the rich and poor widens even moreFurthermore,>Student signs a perfectly legal contract with a lending institution>Decides that they can't/don't want to pay the loan back>Debt is forgiven by our benevolent and caring government>Government enables young adults to shirk their responsibilities>Fifteen years later, these same people are pushing for mortgage forgivenessGood work, leftists. Please think beyond stage one next time.
>>5114969Damn dude. I got a liberal arts degree, a JD, and an ms in engineering for less than that. >I'm Jewish>not from a rich family>capcha synagogue tamertio
Some people are equating student loan debt to mortgage debt.Lol.
>>5114969What job did you envision at the end of the course?
>>5114969Congratulations you've lost the game of life at an early age. Now you can stop giving a shit decades before those of us who had a successful launch.>>5114928>>5114928No, blame students who think they are entitled to everything racking up 100 decks in student loans for a bullshit degree and having no career interests that are realistic or lucrative.
>>5114978Good work corporate shill. Lets continue to not let students declare bankruptcy on their debt, unlike any other kind of debt there is
> mfw I didn't go college and I don't want to either> tfw no debt and perfect credit
>>5114978>Lending institutions are financially guttedGood job. You built a financial institution that can fail when one product goes bad.
>That feel when I borrowed 15k for my degreeYeah. I just don't understand people.
Why do you need to borrow so much to get into college?
>>5115096>No, blame students who think they are entitled to everything racking up 100 decks in student loans for a bullshit degree and having no career interests that are realistic or lucrative.How are students to blame for how the banks wrap up student debt products?
>>5114975That's a good point. Personally I blame American society and media for hyping up the big name colleges too much. The only sane reaction to being asked to pay $100k for a degree is to laugh in their faces.
>>5115317The "wrapping" isn't the issue numbnuts it's the default rate of the underlying assets being wildly different from expectations because students just keep getting worse and more entitled.
>>5115235My BS (2005) was $20K, my MS (2007) was $40K. Kids today be spending $60K on a BA alone.
Its unconstitutional.You know what it's called when you recieve a service from somebody but don't repay them for it?Involuntary servitude you retarded liberals
>>5115369Actually it is because banks chose to expose those other funds to student loans. Students don't make that choice. When banks choose to do that, they're responsible if the underlying product affects those pensions and other funds. As for the default rate being an issue, that sounds vaguely familiar to another financial issue we had recently. To say nothing of schools doing their own form of predatory lending during enrollment (even in state schools). Surely the student's trust in the college he goes to isn't taken for granted when money is on the table.
>I sign contract asking for money>complain and enact legislation when I learn it wasn't free money
>>5115494You mean like this? Fucking socialist liberals...subsidizing all those conservative boot straps...
I have a better idea. Let's forgive student loan debt, but ONLY for STEM degrees.Liberal arts? Fuck you, keep that debt. STEM, which is actually important and useful, gets debt forgiven.
>>5115576You'd have mass protests
>>5115707Authorize use of lethal weapons.
>>5115820You would make a great president
wouldn't a more sensible course of action be to just make all student loans (or at least a substantial portion of them) into student grants going forward? I mean, it would be nice to forgive the loans for everyone who is currently in debt because of them, and if it's possible I say go for it but as people in this thread have already said, it would create a host of problems. Why not just use grants to make education way more affordable in the future?
Won't happen. Ever. Both parties are in bed with banks and colleges to a disturbing degree.
>have 5k in loans>probably get another 5k in loans before I graduate>happy to pay my loans off>happier if I didn't have to pay my loans offWe Democracy now?
>>5114830Isn't this basically vertical integration of a financial industry? Didn't anti-trust laws make this sort of shit illegal?
>>5114417You mean other than completely destroying any ability to get a student loan ever again? (Well, I guess that's not bad.) Or making banks even more leery than before of giving out any kind of loan? (Which is.)Why would banks give out money, ever, when the government has shown it will step in and say "lol no they don't have to pay that back, you just eat it you damn dirty capitalist"?
>>5116674Because if they don't give out loans they have nothing to pay interest with and thus have no more utility than simply getting a safe.
>I can't discharge my student loan debt by sitting around playing video games and bitching on 4chan all day>Must be impossible to do it
I worked my way through college to pay for it. Why can't these self-entitled cunts? I hope they kill this bill and all others like it.
Let it be discharged in bankruptcy like every other kind of debt.That's the problem with student loans. The only way you don't get them paid back with interest is if they die with no assets or flee the country. Banks get plenty of reward but an infinitesimally small risk, and students are hurting when they go into professions that don't pay well enough or can't find work.
>>5116761But hard work is harrrrrrrrrrrrrrrrrrd.I assumed it would be eeeeeeeasyyyyyyyyyy. Society liiiiiied to meeeeeeeeeee.Government needs to fix iiiiiiiiiiiiit.
>>5116761Most people without college can't score a job that pays for college and living expenses. What job was this, anyway?
>>5116808Why should banks be able to charge interest without taking on risk? Sounds like they're the ones getting a free ride.Bankruptcy still means you have to relinquish assets if you have any worth taking and ruin your credit. It's not a piece of cake.
>>5116808Grow up
>>5116868>Why should banks be able to charge interest without taking on risk?Because they gave you money, you spoiled little cunt.Go pick some fucking fruit for awhile instead of complaining because you didn't walk out of college and right into a job where you sit in an office and play on Facebook all day and get $100,000 a year.
>>5116827Uh, yes they can. They're just too dumb to go out and look for them. A year's tuition is only about $8000. I worked at Winco and at a local restaurant to pay for my tuition AND my apartment and I still had extra spending money.
>>5116535Yeah it is. That's why people are complaining about it. And since it's a huge money making machine for the feds, it's hard to envision a scenario where any type of anti-trust suit would be brought against it since something of that nature would have to originate from the government itself or another party with a vested interest AND the financial resources to persuse it (protip: people with student loans don't have the financial resources).
>>5116921Meh, that sounds like community college tuition rates.
>>5117022It's actually in-state tuition for a major university.http://oregonstate.edu/financialaid/cost-attendance
>>5117022>If it's not my Harvard basketweaving degree that I paid $300,000 for, it ain't worth shit
>>5116921>$8,000In its most recent survey of college pricing, the College Board reports that a "moderate" college budget for an in-state public college for the 2011–2012 academic year averaged $21,447.In-state.Public.http://www.collegedata.com/cs/content/content_payarticle_tmpl.jhtml?articleId=10064Online courses in "critical popular women's media studies" from Devry don't count, dog.
>>5117063If it's not a STEM degree, you go Ivy League for networking.
>>5117131Has networking helped you pay off your student debt loans?>Hay guize I totally met this guy who said his dad was in the Skulls. I'm still a few hundred grand in debt and not even bothering to try and get a job, but I'm betting that'll be useful at some point.
>>5116909Can we have a civil discussion about this issue? I have a relatively low amount of student debt and would not benefit from this legislation, but it's still good policy.People with every type of debt sometimes get in over their heads. That's why interest is charged; to mitigate the risk of default by making other people pay for it, and make a little extra as an honest profit.Banks want to get interest, but they don't want to take any of the risk. Instead, they want Uncle Sam to shake you down if you can't pay. Yet when the banks get in over their heads with debt, such as in 2008, they get free money from the taxpayers - they didn't have to pay back their own debts. Heck, even Lehman Brothers was able to enter bankruptcy protection as an LLC, and their shareholders weren't on the hook for the rest of their lives.Yet when a student can't pay, they should have no protection?
>>5117173>doubting the power of networking
>forgive debtinterest fly through roof for those who didnt get the free ride in time. U default, no credit. thats why its to good to be true.Is college worth it anymore? majority of majors have more grads then jobs available in US. what happend when oversupply, price of ur labor drops.
>>5117192>Can we have a civil discussion about this issue?>On /pol/
>>5117192Their protection is their decision whether or not to take on the debt in the first place. Cut the bullshit, you pussy faggot.
>>5117192no protection. thats right. you cant pay a loan then ur a fucking deabeat and should be issued credit in the future. its called bankruptcy. If it wasnt for federal handouts for everyone to college, whether its STEMM or Underwater Basket Weaving, the price of tution wouldn't astronomical because of inflated demand that has a drop-out rate. but, fuk it money grows on trees right. woo hoo!
>>5115910>Implying this won't make it cost even more than subsidized loansIncrease the subsidies - > increase the pricesThe real root of the problem is with these fucking universities who pretend they don't have customers and that their fucking tuition is like a lifeboat out of poverty instead of a huge fucking investment that they should suck your cock for making.
>>5117295It's stunning you don't realize how shitty that protection is.
>>5117351It's stunning you have no concept of personal responsibility for your own decisions instead of forcing others to pay for your mistakes.You are essentially cancerous, taking our bodily resources and using it to create a bunch of worthless/harmful bullshit while we waste away as a nation.
>>5117344>hurr durr education good. more education gooder.libtards cant into economic theory
is this proposal forgiveness of federal subsidized loans, or all student loans?i would basically never have any money problems if it weren't for my student loan payment.my school just flat out lied to me about costs and interest rates, and yeah, still on me to see through their lies and be more investigative 8 years ago, but fuck.i have to sell blood to make bread.i would basically kill someone to just get the interest rate down to something they still make money off of me from but where i can afford a used car or something.
Just join the military, pussies.It's a peace time army, there are no wars coming up, and there are no wars occurring now. (you will not go to Afghanistan by the time you're out of basic, only stupid edgy anti war teens say this)
>>5117395Schools don't give loans. Private entities or the government does.Stupid cunt.
So, I'm not in debt and owe no money, when do I get free money?
question, why do they mandate attendance at Universities like its fucking HS? Is it because they have to justify all their capital spending , and thus tuition price, on useless facilities whether the majority of student use them or not?
it seems to good to be true if you are an idiot who had no idea what you were getting into when taking on a loan. To the rest of us, it looks like a political party buying votes with other people's money
>>5117374I have a degree and no student debt. I paid it off without paying interest. That doesn't excuse the fact that the student is in an absolutely horrible position when taking a student loan. The lack of protections and huge risk (especially in this age) are crazy compared to other business ventures.
how about following up student loan forgiveness with an australian system, where going to uni gets you an additional tax rate, and they just give that rate to all people who's debt's forgiven.i think it's like +6% to your taxes for a number of years depending on how long you went..every grand of debt they forgive they add 4-6% or something to your taxes for a year.then they just start up new students on the same system.
>>5117396Further, join the Air Force.
>>5117410school financial aid officers will file your application and basically gave me the pitch, and y'know what, the school says how much it costs to go there, too.
>>5117466Your obsession with protection reveals you as a true beta loser, afraid to succeed or fail, as TR once said.
