Student loan borrowers refusing to pay. You signed the contract now pay what you owe!!!!!

Discussion in 'Wall St. News' started by S2007S, Feb 12, 2021.

  1. Sig

    Sig

    Somewhat counterintuitively, the more expensive and prestigious the college the cheaper it is to attend if you can't afford it. For example Stanford is tuition free for all students whose parents make less than $125,000 and also adds free room and board if your parents make less than $65,000/year.
     
    #41     Feb 14, 2021
  2. How come?
     
    #42     Feb 14, 2021
  3. Trump walked aways on his debts plenty of times and he was hailed as a smart business man. But when its Joe Six pack's broke ass kid trying to get a degree that ends up not providing a ROI they are the bad people.

    Hey its a business decision like any other, people walk away from debts all the time and then start all over on a new business and you don't see the same hostile media coverage.

    what's good for the goose is good for the gander
     
    #43     Feb 14, 2021
  4. Maybe they can get a bailout like the banks, wall street firms and other miscellaneous white shoe firms got in 2008.
     
    #44     Feb 14, 2021
  5. Not directly related, but there was an article a few year ago talking about why College tuition is so high to begin with. (Student loans would be a non issue if the amount was 1/10th of what they are now). The claim of the article is that tuition has to remain artificially high in order for colleges to remain tax free organizations. This in turn allows them to grow their endowments tax free as well. By making tuition ridiculously expensive, and then give away huge scholarships (for some) to lower the price, they can make it appear as though they are loosing a lot of money. Pretty interesting (but long) article:

    https://www.conradbastable.com/essays/the-uncharity-of-college-the-big-business-nobody-understands
     
    #45     Feb 14, 2021
  6. Sig

    Sig

    I've always believed the world would be a far better place if tax exempt status for universities and religious organizations were both revoked.
     
    #46     Feb 14, 2021
    322170 and ph1l like this.
  7. NoahA

    NoahA

    It would be even better if you just let the market decide every price without any incentives for anything.
     
    #47     Feb 14, 2021

  8. Agreed, that's why no one lost their house when the government bailed out banks during the GFC.
     
    #48     Feb 15, 2021
  9. Has anyone here thought about the moral hazard of banks and colleges convincing TEENAGERS of agreeing to billions in loans without providing any type of financial education. No one fights as hard for their master as a slave.....many in here should check their back for a scar.
     
    #49     Feb 15, 2021
    Adude81 likes this.
  10. Sig

    Sig

    As an FYI, the term "moral hazard" has a very specific meaning in finance, it's worth a google.
     
    #50     Feb 15, 2021