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CopperCicada · M
Here's the problem with that model.
I've worked in an entrepreneurial environment. If I were to go to a venture capitalist with no track record of successful start-up exits, and have an idea with no realistic path to generating a return on investment dollars-- no VC in their right mind is going to invest in me. And if they do and lose their investment it's on them for not performing due diligence.
On the other hand, we expect to lend money to young people who have little or no demonstration of being able to complete their education or get a job-- and we have a rigorous demand that they pay us back. We guarantee the banks so they write notes without fear, and then the federal government can sue, garnish wages, garnish tax returns, and so on.
To me it sounds a lot like the VC no doing due diligence.
Seriously. In terms of an investment, who the fuck would invest in somebody studying English literature or anthropology. Who would invest in somebody who barely got through high school.
I'm not saying such people don't deserve an education. But maybe they have to self fund it. Or their loans are not guaranteed.
I've worked in an entrepreneurial environment. If I were to go to a venture capitalist with no track record of successful start-up exits, and have an idea with no realistic path to generating a return on investment dollars-- no VC in their right mind is going to invest in me. And if they do and lose their investment it's on them for not performing due diligence.
On the other hand, we expect to lend money to young people who have little or no demonstration of being able to complete their education or get a job-- and we have a rigorous demand that they pay us back. We guarantee the banks so they write notes without fear, and then the federal government can sue, garnish wages, garnish tax returns, and so on.
To me it sounds a lot like the VC no doing due diligence.
Seriously. In terms of an investment, who the fuck would invest in somebody studying English literature or anthropology. Who would invest in somebody who barely got through high school.
I'm not saying such people don't deserve an education. But maybe they have to self fund it. Or their loans are not guaranteed.
SW-User
@CopperCicada 😐 English literature, huh?
CopperCicada · M
@SW-User That is not to devalue English literature. If it were up to me, I'd like to see more people in the letters. You know-- so we can have an educated society. Perpetuate culture. Have nice things.
But the OP was that people should "pay their loans".
I am presenting the perspective that guaranteeing educational loans takes away any and all risk in lending. When I bought a house I was vetted AF for the mortgage. Why? The loan was not guaranteed. The bank would eat it if I defaulted. When I got student loans-- I just signed my name. My major and academic record, and thus my future earning potential, was actually not even part of the student loan vetting process. There was no vetting process.
I have met people with well over $100K in student debt with a BA in letters. Humanities, literature, art history, philosophy. That's a hellish burden. That's a hellish burden for anyone, but some of these majors end up on the American list of "worst majors" to get a job. Then what? The lender doesn't care. They have no risk. Their note is guaranteed by the federal government. If the student defaults, because of their choice of major or their academic aptitude-- they're on the hook for life.
Every time a student defaults on a student loan, the attitude is-- what a dead beat, ingrate. Pay up. Well. Behind that is also a poor investor if we look at it from that angle. But the poor investor can do it again because their notes are guaranteed by the federal government.
But the OP was that people should "pay their loans".
I am presenting the perspective that guaranteeing educational loans takes away any and all risk in lending. When I bought a house I was vetted AF for the mortgage. Why? The loan was not guaranteed. The bank would eat it if I defaulted. When I got student loans-- I just signed my name. My major and academic record, and thus my future earning potential, was actually not even part of the student loan vetting process. There was no vetting process.
I have met people with well over $100K in student debt with a BA in letters. Humanities, literature, art history, philosophy. That's a hellish burden. That's a hellish burden for anyone, but some of these majors end up on the American list of "worst majors" to get a job. Then what? The lender doesn't care. They have no risk. Their note is guaranteed by the federal government. If the student defaults, because of their choice of major or their academic aptitude-- they're on the hook for life.
Every time a student defaults on a student loan, the attitude is-- what a dead beat, ingrate. Pay up. Well. Behind that is also a poor investor if we look at it from that angle. But the poor investor can do it again because their notes are guaranteed by the federal government.
QuixoticSoul · 41-45, M
@CopperCicada You'll just quickly end up in a country with no English students. And then no English departments. Entire fields of scholarship will be extinguished for little gain. And that will have a cost downstream.
It's more worthwhile to make it so that it doesn't cost $100k to get an undergraduate degree - of any kind.
It's more worthwhile to make it so that it doesn't cost $100k to get an undergraduate degree - of any kind.
CopperCicada · M
@QuixoticSoul Of course that would be the outcome and we're actually going down that road already. Universities are more and more framed as vocational training institutions. In my time involved in higher education I have seen liberal arts requirements eroded.
I agree. The solution is to not make education so expensive.
My personal approach would to make 2 years of junior college or trade school free. That way people could get a trade, become a nurse, or get an AA and transfer out to a university.
I agree. The solution is to not make education so expensive.
My personal approach would to make 2 years of junior college or trade school free. That way people could get a trade, become a nurse, or get an AA and transfer out to a university.
QuixoticSoul · 41-45, M
@CopperCicada We did that in SF - community college is free to residents. It’s not quite enough - though $50k degrees are better than $100k degrees.