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[–] sinjinsmythe 0 points 5 points (+5|-0) ago 

I know voat likes to take the hard line bootstrap principle, but fuck off guys, the interest rates on these loans are insane - 8, 9, 10%???!!! That is ridiculous. I know people who have 2% mortgages. Make the interest rate 2% and everyone will pay the friggin loans back. This is banker, government and higher education pigs' greed pure and simple.

Making exorbitant interest off the backs of our youth trying to educate themselves is pure fucking evil.

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[–] 6446621? 0 points 2 points (+2|-0) ago 

The reason people have 2% mortgages is because they have a good and established credit record and the bank can repossess the house as collateral. Students have no credit record, so they are much more risky, and student loans have no collateral. At 2% no one would offer them.

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[–] Felonious_woodpecker 0 points 2 points (+2|-0) ago 

You do realize that wages are garnished and amy tax refunds taken for non payment for student loans right?

There is zero risk for lenders. The univerisites take a % off the top and dont apply it to tuition, it is another fee.

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[–] Sev_ 0 points 1 points (+1|-0) ago 

I regret that I have but one upvoat to give.

Seriously. If getting student loans required the same level of scrutiny, credit worthiness and overall bending over backwards as a home loan, then I'd have no problem with a 2% student loan. The fact is most of the people (myself included when I started out in school) would barely qualify for a payday loan, let alone $50-100k in unsecured debt with virtually no repayment income. People who claim that "wage garnishment" and tax refund confiscation are the same as repossessing a house are delusional.

If I default on my home loan, the bank gets back (in the current market for example) 50-80% of the loans value at auction or forclosure sale, a process that takes maybe a year these days (having been shopping for forclosures recently). I had banks that would turn around and sell the property for the original loan amount, and not even take offers.

And people are trying to compare that with a bank trying to get tens of thousands of dollars in student loan back by garnishing some barista's wages? Are you kidding me? Yea, maybe after 20 years you might have covered your principal. Maybe.

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[–] sinjinsmythe 0 points 0 points (+0|-0) ago 

They can never get rid of this debt = almost no risk. The reason for the low interest rates everywhere else is because the central bank is lending at near 0% interest and the fed is flooding the market with cash. Why should every business and financial institution get the benefit of this, but the students don't? No, risk is not the reason. Greed and debt slavery are the reason Longbottom, not risk management.

Besides, there is a fundamental interest in educating American populous, just as there is an interest in home ownership. More educated people, more homeowners with a stake in their property, means better a society, a better union, generally speaking.

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[–] rspix000 [S] 0 points 2 points (+2|-0) ago 

That was Liz Warren's plan that the Repubs and Corp Dems voted down.

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[–] 1Sorry_SOB 2 points 4 points (+6|-2) ago 

We just need more Stimulus, goy - Paul Krudman

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[–] daskapitalist 1 points 3 points (+4|-1) ago 

+11% default rate? The default rate on freaking payday loans is half that. We need to get rid of govt "you get a loan, you get a loan, everyone gets a loan!" nonsense and use actual risk analysis and interest rates to limit the supply of loans to these high risk borrowers before we get a student-loan driven recession.

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[–] rspix000 [S] 0 points 3 points (+3|-0) ago 

Do you think the total student debt of 1.3 Trillion Dollars is weighing on the US economy even if not in default? DO you think they are going to buy a home, get married, or move out of their parents' basement any time soon?

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[–] daskapitalist 0 points 3 points (+3|-0) ago 

I dont think they'll do any of those things. Which is why I expect it'll be the cause for the next major recession in the US.

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[–] 6445915? 0 points 2 points (+2|-0) ago 

Way to many mainstream economists seem to totally ignore the effects of a population with high debt levels. Half the reason for the post WWII boom was because the population had very low debt. These days, economists seem to think that the population MUST take on all the debt they can handle, and spend half their time working just to pay it off, in order to have economic prosperity. A high national debt is only part of the story... a population that is all stuck in debt is arguably an even bigger problem.

[–] [deleted] 0 points 0 points (+0|-0) ago 

[Deleted]

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[–] daskapitalist 0 points 0 points (+0|-0) ago 

IT is at 2% unemployment in the US right now. That's below a "healthy" frictional unemployment rate. If anyone is having trouble getting a job in IT, they should call a headhunter and fix that real quick.

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[–] Alopix 1 points 0 points (+1|-1) ago  (edited ago)

All that will do is deny people the ability to even go to school

And then you'll call them lazy entitled niggers for wanting to live above poverty level on whatever yob they manage to get with no degree

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[–] derram 0 points 2 points (+2|-0) ago 

https://archive.is/aV99t :

Student Loan Defaults Drop, but the Numbers Are Rigged - Bloomberg

'Some 41.5 million Americans collectively owe nearly $1.3 trillion on their federal student loans, Education Department data as of June 30 show. '

'The good news is that Americans are taking longer to default on their federal student loans, the U.S. Department of Education announced Wednesday. '

'For example, in the year that ended June 30, more than 1.1 million Americans defaulted on student loans direct from the Education Department. '

'The difference between the cohort default rate and the nonrepayment rate at junior colleges is about 25 percentage points, the White House said. '

'The so-called cohort default rate published by the Education Department is “susceptible to artificial manipulation,” the White House said in a report last year. '

This has been an automated message.

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[–] Aboresh 0 points 1 points (+1|-0) ago 

The numbers may be cooked because the Department of Education hasn't awarded a contract for 3rd party debt collection on the loans yet. If they aren't placing loans with agencies, how can they default?

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[–] ClandenCTrake 0 points 0 points (+0|-0) ago 

I thought people couldn't default on federal student loans. Does anyone know how that works?

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[–] rspix000 [S] 0 points 0 points (+0|-0) ago 

People can fail to make the payments required by student loans and thus be in "default". What people can't do is discharge them in bankruptcy and the banks can grab your social security payments until they are paid if you haven't paid them back by then. https://i.sli.mg/XXrx1L.jpg

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[–] ClandenCTrake 0 points 0 points (+0|-0) ago 

So what does being in default mean then?

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[–] TheDude2 2 points 0 points (+2|-2) ago 

The best way to fix this is for the government to shovel money directly to universities with no control over costs. Additionally, students should get money for "books and supplies" and never be held accountable if they fail or take bullshit classes.

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[–] rspix000 [S] 0 points 3 points (+3|-0) ago 

priorities Have you noticed our $Trillion/yer wars, bank bailouts, and prison industrial complex that we be shoveling money at? But no, no, them students might misspend their book and supplies stipend.

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[–] TheDude2 0 points 2 points (+2|-0) ago 

Why not fix both? More people can get educated if prices are controlled.

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[–] lyin4rmu 0 points 1 points (+1|-0) ago 

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