[0]. https://mobile.nytimes.com/2010/05/29/your-money/student-loa...
[0]. https://mobile.nytimes.com/2010/05/29/your-money/student-loa...
To clarify what I mean: If student loan debt is dischargeable, that means that taking out a loan for college is actually less risky. We should expect more people to do it, not fewer.
There is because there is some point where the ratio between amount of money requested, and expected postgraduate earnings for the chosen degree, would make for a bad deal due to the likelihood of default.
It’s less risky for students, but loan providers won’t want to overextend themselves to accomodate institutions who promise students the moon and demand sums they won’t be able to repay to “give” it to them.
Why?
That should be fine and enough because there is value in English; he's a teacher, he's definitely gonna produce a TON of value over his lifetime for society (and, discussion over fair wages for teachers aside, enough money). More than the $35k debt he graduated with.
Or take the lady who has payed $63k towards her $8k original debt.
The problem here is that the student loan debt market is structured such that this value won't actually pay the debt. If they tie you in with perpetual debt, they can essentially "tax" you for the rest of your life, and because student debt is some sort of exception, there's nothing you can do to default out of it. What corporation wouldn't take the incentive for this essentially free, steady monthly income?
I think schools should be required to justify why imparting a gender studies education costs $100k. Apart from professor salaries (maybe $80k/yr for a public uni in a a major metro area) and classrooms/whiteboard markers/projectors (already paid for, but figure equivalent of $15k/year) what exactly is that money going toward?
We in industry can also help by not valuing the university "name" so highly, and saying so loudly and often. If the job market was kinder to applicants from institutions of lesser-renown, we'd have fewer students willing to go into crazy debt to get into a prestigious school. I acknowledge that software is actually pretty good about this but other industries are not.
If you want to make the argument that students are mostly picking wrong degrees, make it with one that is actually prevalent. Not the one that is fashionable among rich kids you personally despise.
It undermines the idea that all four year college degrees are worth subsidized financing.
So why can't one simply expect from grown-up people to do the same for the degree that ones planes do get?
They grew up in a world where a bachelor's degree - any bachelor's degree - virtually guaranteed at least a middle class lifestyle, if not an upper middle class one. Many of them can't fathom the idea of graduating from college and then not being able to find a job that pays a living wage. Especially the ~2/3 of them who don't hold bachelor's degrees themselves.
It is not only about finding a job (I believe with a "sensible" degree you will always find one), but about finding a job that pays well enough so that beside the costs of living (which are enormous in some regions) also the college debts can be paid back in a reasonable time.
My point is just that a solution to this problem that requires teenagers and their parents to accurately predict the future of a complex society is not actually a solution at all.
On the other hand, I don't think you can ignore the financials. It's not about "useful vs useless." All courses of study are useful. People are getting saddled with piles of debt that they can't manage, though, and US law doesn't allow you to declare bankruptcy from your student loans, so people can potentially end up screwed for life. Against that kind of a backdrop, to blithely charge students whatever tuition they're willing to pay, regardless of whether or not they can expect to be able to pay it, is heartless.
So then the question arises, how do you increase the chances that nobody gets shackled with unmanageable debt for life? Changing the earning power conferred by different majors is a possibility. But, capitalism being what it is, that's going to require either changing the demand for those skills, or changing the supply of people who have those skills. It's hard to imagine how the former can be managed without some sort of government subsidy.
There are myriad ways you could affect the supply side, though. Doing something to put universities on the hook for how much their students earn, such as having students pay a % of their income to their alma mater for a decade or two in lieu of all or part of their tuition, would certainly do it. Universities would hopefully respond by starting to limit the number of seats available in departments that feed into less lucrative career paths right quick, in order to make sure that every department is financially sustainable. That would, in turn, reduce the supply of people with those skills, which would translate into an upward trajectory in how much it costs to hire someone with those skills.
But what is that kind of approach, if not a distinctly capitalist riff on the idea of "delineating useful vs. useless degrees"?
And if not something like that, then what?
(I think there's a famous anecdote by Bobby Jindal where his father told him that he could be anything he wanted to be -- any kind of doctor that is)
Heavy-handed? Yes. Effective? Also yes.
Edit: found a reference that says parents must support children until they are 21 or have a profession to support themselves (presumably whichever is sooner -- I hope!).
> Edit: found a reference that says parents must support children until they are 21 or have a profession to support themselves (presumably whichever is sooner -- I hope!).
According to
> https://www.merkur.de/leben/geld/erwachsen-kind-finanzieren-...
if the child studies at a university, the parents have to pay for them until it gets its master's degree (which is typically much longer than up to the 21 years of age). There are exceptions, such as if the parents can prove that the child does not concentrate on his studies or if it changes the degree course "too often" etc. But assume that the normal case is that the parents have to support the child up to master's degree.
If they advice this, they should put their money where their mouth is, i.e. be willing to pay for a substantial part of the college debt.