Do we need a student loan bailout?

[Jordan]

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

 

[jclay2]

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

How about stop all the bailouts. Can't that be a solution? Plus, rewarding those who partied it up and were extremely irresponsible (whether knowing or not) is setting a bad bad bad moral hazard. The reason we have failure and stupid tax is so people can learn. Constantly bailing people out on funny money doesn't help anyone.

 

[oyarde]

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

There is no incentive for govt to forgive student debt , these kids are on the hook for it forever , just like if you owed the IRS , they will get it sometime ,eventually .

 

[oyarde]

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

There has to be jobs , not coming .

 

[kpitcher]

Bailouts only happened to politically connected companies. Or the wives of politically connected people
http://www.rollingstone.com/politic...-look-whos-cashing-in-on-the-bailout-20110411

 

[thoughtomator]

How about stop all the bailouts. Can't that be a solution?

It should be a solution, but it can't be as long as we're still creating problems that offer the choice of bailout-or-some other equally messed up situation.

With student loans, it is the government feeding the situation which has created the massive loan bubble (just like with housing). The first step to any serious solution is to stop feeding the monster; that, in turn, requires mature decision-making along the lines of "it's not economically viable to send half the population to college".

 

[tod evans]

'Murika!

Hell yes!

More free money!

Consume without consequence...

Even better than an actual "bailout" why not make student loans dischargeable in bankruptcy?

That way Suzi and Johnny can each buy a home, a new car and all the cloths and electronics they deserve and then just write it off...

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

 

[RonPaulFanInGA]

Millions of students signed their lives away at the depth of the recession. They took out more student loans than they could ever afford to repay. Many of these student loans are backstopped by government, meaning that the government will pay for any balances that students cannot repay in the future.

So why not bail out student loans now?

If the government is going to bail people out anyway, doesn't it make more sense to do it now? Bailing out students would help boost aggregate demand and stimulate consumption, improve consumer spending, and get the economy out of its current slump. If the end result is bailouts, why not today?

So how much do you owe?

 

[angelatc]

'Murika!

Hell yes!

More free money!

Consume without consequence...

Even better than an actual "bailout" why not make student loans dischargeable in bankruptcy?

That way Suzi and Johnny can each buy a home, a new car and all the cloths and electronics they deserve and then just write it off...

Back when the banks failed, I would rather have seen the government just forgive the mortgage debt and let the "too big to fail" banks fold. If there was to be a bailout, it should have been directed at the citizens. But as for student loans, inflation will soon make them affordable. YOu'd think with all that money they spent on education they'd already know that.

 

[scrosnoe]

Let's just wipe the slate clean and have a jubilee for all those loans -- no bailouts/ no payback / no penalties (and no more low interest loans either) let the market work freely!

 

[angelatc]

Let's just wipe the slate clean and have a jubilee for all those loans -- no bailouts/ no payback / no penalties (and no more low interest loans either) let the market work freely!

The only way that will work is if the government exits the student loan market. Otherwise the backlash will look like immigration - Reagan gave an amnesty, and an even bigger flood of illegal immigrants surged into the market, knowing that there would likely be a new amnesty.

 

[KrokHead]

Terrible idea, it will simply allow tuition to skyrocket because of the lack of market correction.

 

[frodus24]

I borrowed money to attend college and I plan on paying every penny back. I signed the Master Promissory Note and I was aware of what a loan is when I entered college. If a parent or student can't comprehend the definition of what a loan is then they should not go to college. I work in financial aid so I see the back end of the disaster brewing.

 

[RonPaulFanInGA]

I borrowed money to attend college and I plan on paying every penny back. I signed the Master Promissory Note and I was aware of what a loan is when I entered college. If a parent or student can't comprehend the definition of what a loan is then they should not go to college. I work in financial aid so I see the back end of the disaster brewing.

Thank you.

Don't borrow money if you don't want to pay it back. How hard is that? No one held a gun to anyone's head. It's no one's fault but your own if you went into massive debt getting a worthless degree in something like Art History, something you could not get a good enough paying job in which to justify obtaining the degree in the first place.

 

[jmdrake]

Well....Obama already set up a student loan bailout. There's a program where you can make your loan payments proportional to your income, and after so many years it's "wiped out" regardless of whether you pay.

 

[oyarde]

Thank you.

Don't borrow money if you don't want to pay it back. How hard is that? No one held a gun to anyone's head. It's no one's fault but your own if you went into massive debt getting a worthless degree in something like Art History, something you could not get a good enough paying job in which to justify obtaining the degree in the first place.

Art History ? That sounds fun .

 

[tod evans]

Art History ? That sounds fun .

Sign up............Free education for all.

 

[oyarde]

Sign up............Free education for all.

At my age , I need a vocation that comes with a neck masseuse

 

[oyarde]

What we really need is an economy devoid of govt, then these kids could get jobs, not go to school and those few vocations that needed school , they would easily make enough to pay back any loan from a private lender .Problem solved

 

[MelissaWV]

No.