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Don's avatar

This is why student loans should not be forgiven. Too many administrators being paid out of that tuition. Colleges need to be reformed more than banks or corporations.

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LW's avatar

Agreed.

And all we have to do is allow student loans to be forgiven in bankruptcy. That would massively decrease the amount of student loans given (an unemployed 19-year-old has little credit), which would stem the inflow of loan dollars into university tuition. The result would be Universities having to get rid of a good chunk of their administrative overhead.

This is actually pretty simple to fix, just requires some amount of political will.

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Lee Morris's avatar

100% correct, Lawrence.

Current law disallows debtors of student loans to have their debts discharged through bankruptcy. If they were, not only would (ex) students get a pathway to financial freedom, they would have the leverage to negotiate lower amounts and better terms with their creditors (mostly the federal government). And as you state, with the higher amount of risk, loans in the future would be fewer, the amounts less, the lower the amount of students, the dismissal of bogus administration bloat in major universities, and voila - lower tuition fees. Much lower.

Win. Win. Win.

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Lynne Morris's avatar

That does provide a solution for those genuinely unable to pay versus those who do not want to pay.

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Celia M Paddock's avatar

Precisely. Personally, I owe more than my net worth in student loans, largely thanks to the evil practice of capitalizing interest (done only on student loans).

I wouldn't have applied for those loans to begin with if I hadn't believed that my salary as a university professor (the educational course I was pursuing) would cover them. But I found out too late that I would never be a university professor, with what later became known as Wokeness being used as a shibboleth to keep out the unindoctrinated.

Our income is not remotely sufficient to pay my student loans. If it were possible to discharge them in bankruptcy, we would do that in a heartbeat.

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Lynne Morris's avatar

I understand and as many of your comments as I have seen on.here I did not realize your predicament. I sometimes take comfort that my people have been subjected to persecution before and if they survived, and I am proof they did, I can too. But it is hard to stomach isn't it?

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Celia M Paddock's avatar

It is hard to stomach. And it's one of the reasons that I, like our nation's Founders, do not trust the concentration of too much power into too few hands.

Although, of course, the primary reason I don't trust too-powerful government is the active persecution of my own people (Latter-day Saints) by the U.S. government in the 19th and early 20th century. And we are far from the only religious group that knows how seriously (not!) our government, in practice, takes the First Amendment.

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Lynne Morris's avatar

With the right messaging I think the too much power in the hands of too few is the path to unity. Religious persecution has driven people to move throughout history. But now there is nowhere to go. At least for the moment.

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Sophia's avatar

It also requires having a conscious, something that seems lacking in college administrators.

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Brian Katz's avatar

Colleges should refund the tuition.

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Lynne Morris's avatar

Consumer litigation?

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M Hutcheson's avatar

This and thousands of other reasons loans should not be forgiven. Forgiving loans teaches people exactly what?

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Sophia's avatar

Forgiving loans isn't meant to teach, it is meant to give borrowers a break from the financial corruption of colleges.

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Aaron H.'s avatar

And to punish those smart enough to avoid the scam to pay the bill instead.

No thanks.

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Lynne Morris's avatar

This is very true IMO. Otherwise the students will not wake up to what has been done to them.

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Sophia's avatar

Not more than bank or corporations but, along with. They are all equally corrupt.

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