student debt, at over $1.5trn, is larger than the national borrowing of most countries. It has quintupled in size since 2004, overtaking both borrowing on credit cards and car finance. This growth is often presented as evidence of a crisis. But the rise in total debt, though arresting, is not the real problem. It largely reflects increased borrowing by graduate students, such as budding lawyers, who will go on to be high earners.
Messrs Biden and Bloomberg want to put all existing and new borrowers for undergraduate degrees into an income-linked repayment scheme, under which borrowers must repay only a fraction of their annual earnings above a certain threshold.has long argued in favour of such a repayment mechanism, which works well in Britain. Linking repayments to income makes it impossible to be impoverished by student debt, and frees graduates to take risks early in their careers.
By enrolling everyone automatically, Mr Biden’s and Mr Bloomberg’s plans would greatly improve the status quo. Both would cut repayments from 10% of income above the threshold to 5%, less even than in the British system. Mr Biden would raise the repayment threshold to $25,000 and make all debt forgiveness tax-free. Mr Bloomberg would forgive debt that was incurred at failed or predatory for-profit universities and exempt debt forgiveness up to $57,000 from tax.
It's a choice to take on that debt. pick a local college and live at home and work and you can come out debt free.
The U.S. government has become the nation’s largest predatory lender providing loans to people who cannot possibly pay them back. The government needs to stop playing banker and return college loans to banks. College debt ballooned after the government takeover.
Loans are a choice, not a requirement.
Amazing - my daughter had a 802 credit score and is paying 12% on one of her loans.
How about u be responsible when taking a loan out...
Who holds a gun to their heads to make them go there when they could do better for themselves with a trade? Yeah, you know who. With all the money spent on education, why are idiots among us? I.e., like you.
That and work on creating good quality jobs. Starbucks does not count
Shit is overpriced
Creepo stalker.
Absolutely correct!
Cuz they locked in such system
Did the wisdom quintuple, too?
Colleges raise tuition several times the rate of inflation & yet they continue to get a free pass. Why?
$1,500,000,000,000 ... how many people understand how $1 gets *created*? Is it important people *think* money is more important than education? .
That’s what happens with easy money policy. My friend borrowed 4-5x what i did to graduate from the same school with the same degree. Not because he needed it. But because it was like free money at the time. But then you graduate in a mountain of debt without the salary to pay it
to form a free mind
alllibertynews And why have student loans been excluded from bankruptcy?
1. Get government out of the student loan business. 2. Make sure your degree will be WORTH IT. 3. Shop around for your college. You don't have to attend the most expensive college program. Many online programs are excellent. 4. Only take college classes as you can afford them.
The schools should pay these back
The last president screwed it up remember
Our education policy is misguided. Many of the young people that we are sending to Kaaaalig would be better served by attending a short program that prepares them for real jobs. 4 year Kaaaaligs grew rich from the mountain of debt that young people have piled onto their backs.
See government takeover of the student loan industry.
Simple. Don’t ask for their help. They created the damn problem!
Blame the Government and the University. The US Government has taken control of the student loan industry and failed miserably. The Universities have taken advantage of students. They have given them overpriced degrees that are in many cases worthless
This is the problem with the 'everyone's a winner' mentality. College isn't a right, it isn't for everyone and, frankly, it isn't even a necessity in today's economy. The U.S. government should NOT be in the business of making private loans and those who owe$$ need to pay it back
DCBMEP College is a business decision, not a right. If you borrow big money for school, it better be for a degree you can use to pay back your loans. Otherwise, you made a bad decision. Your debt is your fault and your responsibility.
Dear America's youth: research the degree your pursuing, are there jobs in field, how much does it pay, etc Research the college you attend to make sure degree is of value & viable from that institution Plan how to pay for that debt after graduating Work during college
The solution is to stop offering student loans to people getting degrees in fields that won't pay the bills.
The student loan 'crisis' was created by the Obama administration~they took over loans knowing this problem would be the result & it could be used for a political tool to buy votes.
1. Gee. I wonder why? Could it be that the Dept of Ed took over the loans & now lend the $. They've given colleges a blank check by letting people borrow up to the 'cost of attendance' with NO limits.
Minorities hardest hit? By given money they asked to borrow?!
DCBMEP And all they com out with is a certificate/degree in liberal left indoctrination.
End the student loan program now!
DCBMEP Shouldn’t have gone to college, then. Same applies in UK. Waste of money for half of them.
ICYMI:
Well spotted. Poor people curiously do find debt more oppressive. Just as you like it.
Some companies help the employees and pay for their tuition. I think it's a good solution. Or what's about making special education contracts? Your potential employer subsidize the cost of college tuition, after graduation you work for him/her returning the money.
The main goal of getting higher education should be getting a better job meaning you should be able to repay your debt. Why is it such a huge issue in USA? How much does it cost that so many high paying workers can't return loans?
I don't get these people. They take a loan, and then pretend like they didn't know they need to pay it back.
They should forgive all student loans. It is a excellent measure for America and Americans. Professor Isagholian
I think the Nevada election today showed what people want done.
In my state in 1980, 90% of in-state tuition was covered by the state. A full-time, minimum wage summer job provided for a year’s tuition. Today, 30% of the cost is covered. And the minimum wage doesn’t come close. We get what we pay for. We chose tax cuts over education.
2 words: Trump University
Cancel all the interest on the principle. Simple. Also, remember that non-white Americans have more opportunities for scholarships and others financial programs developed for minorities.
College's need to be responsible for debt of students since they have the money from students loans, not fair and time for them to be more accountable
People need to be more selective on their university of choice. Certain degree paths benefit from prestigious schools, but others don't. If you can't afford it, look at lower cost programs
This is the new American Slavery. the Rich like Trump can discharge there debt but they made it so poor cannot discharge student loans this is why everyone is Voting for SenSanders We Need Change Fast.
Make colleges/universities co-sign these loans. If they believe they are producing a quality product they will gladly back loan. In reality, leftist feel good feelings are messing with market conditions causing heartache and ruining lives with false promises and expectations.
Non white?
Is it important people *think* ... ... money is more important than education? .
Colleges should stop promoting worthless degrees first and foremost
How about we be adults and pay for things we bought on credit?
So you are saying the American College System is preying on the disadvantaged? But they are all leftists like you, how is this possible?
When we had a mortgage loan crisis, the government stepped right in...
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