A taxpayer gave you a dollar for dollar loan to go to college if you take out federal loans. You ain't robbing me so you will take your student debt to your grave. If you don't want to be in debt then don't go in debt.
What about the student loan "processing agencies" which take a cut from student loan interest? What do they owe society? Are you saying that there's no fault there?
What about the money that does go to uni? Did it just disappear?
What about universities that intentionally increase tuition because of the high availability of student loans? When you're 2-years in to a 4-year degree, and the uni increases prices...what happens then? Abandon the program? Not? Back when I was a student, my uni increased tuition fees nearly every semester.
This is nowhere as clear-cut as you make it out to be.
Edit: one more thing...how in the hell is a 17-year old high-school student supposed to figure all that out when every adult in their life is encouraging them to go to uni? We're essentially saddling our youth today with life-long debt before they're really capable of understanding the consequences of doing so.
Nobody forces you to take federal loans. It’s not my problem if you can’t pay it back either but you will pay back the taxpayer for federal loans. The reason student fees are through the roof is entirely due to federal loans. Do away with such and the system will self-correct.
> Believe it or not, certain unsecured loans from government entities are dischargeable in bankruptcy.
> This includes SBA loans, and loans made through The Department of Veteran’s Affairs (VA), Department of Housing and Urban Development (HUD) and others.
Look, everyone who loans money must be aware that the loan recipient can declare bankruptcy, and plan accordingly - typically by raising the interest rate slightly.
Without bankruptcy laws we end up with debt bondage and peonage.
You know that companies can also have government loans, right? Because of limited liability, the owners can declare bankruptcy and dissolve the company without being personally liable.
Which sounds like you want capitalists to have more freedom in what they do with government money than those who accept personal debt. The rich get richer and the poor become peons.
No, that's a different point about what you think reality should be like.
While you don't like it, the government is in the student loan business so, like everyone who loans money, must accept that they might not get all the money back.
Besides, your point seems to be that government shouldn't loan any money if there's any sort of risk, not just to students.
And apparently that companies with limited liability protection shouldn't take government loans either.
You’re the one who wanted to include other types of government debt. I was talking specifically about student debt in the first instance. Bottom line, I don’t want students leeching off my taxpayer dollars. If they can’t pay it back then that’s their problem but they won’t escape their debt commitment if I have any say.
Right, and the debt mountain occurred in part because the government was irresponsible when they made student debt extremely hard to discharge, compared to other sort of government debts.
Since the government was also responsible for the mountain, they also need to be part of the solution. Which can include forgiving debt.
People and companies go into debt for many reasons, and can declare bankruptcy. That includes income tax debt - also money owed to the government.
And, those who loan money know there's a risk of default.