We all know about the bank bailouts but would the fed actually consider student loan bailouts? Student loan debt is higher than credit card debt and we have an entire generation of college grads making below $30k/year. This would certainly get Americans spending again. How much money does wiping out student loans cost the US per year? The way I see it, the tuition money has been spent and hounding young Americans for the next 2-3 decades would just hinder growth. I feel like the only one who feels like this.
The banks that were bailed out paid the government back, with interest. Why should my tax money be given to students who made a mistake, went to school for years, and now don't want to pay for it? I see nothing wrong with the government doing something to reduce the interest amount for some student loans, but they can't just pay everybody's debts for them, that's is very unfair to taxpayers like myself who have never run themselves into debt, and others who have debt through no fault of their own. What's next, are we going pay off car loans for people who buy luxury vehicles and can't afford the payments?
If people don't have money to pay back their loans why do you think bailing people out of their voluntary loans will get Americans to start spending again?
Because I think loan payments can sometimes account for up to 25% of people's incomes. I think it was 25 but might be 10%. That extra money could go into savings (maybe an idea to pay the interest back to the government) or people would start buying again.
Hey man debtors pay taxes too and the larger that group gets, they are maybe contributing more tax money than someone like you who has never acquired debt. BTW, I am not sold on this idea really but just something I was thinking about.
No, absoleutely fucking not. People fucking bitch to hell about America and it's debt crisis they better not be expecting to get bailed out. Everyone HAS to go to college and take out student loans nowadays. College is the norm. That's why everyone coming out of college is making ~30k, because that is about average. What do they expect? If they were in a higher percentile of earning capabilities then they would be making more. People are idiots for taking out student loans. I would not attend college if I had to pay for it. If you really want to go to college and don't have money in your family go to the military.
Bro I already posted how I am not really sold on this idea but just something I was thinking about. I was also thinking how if we didn't have all these wars abroad, what could be done with that extra money and thought maybe that could be where the student loan bailout could come from. Idk man I am listening to Pink Floyd
You are right if we didn't have all of these needless wars taxes would be lower (unless a liberal was elected they would find ways to waste your money) and people could pay for their student loans. No income tax! A lot more jobs would be created because people would be able to invest more in the economy. Listen I get your frustration the banks got bailed out and we got screwed. I have 20 grand in student loan debt myself, I'd rather be able to pay that back myself because I have a job. Government spending kills jobs because the money has to come from somewhere.
Its not like you're really helping the people by bailing some people out of their irresponsible loans. All you're doing is transferring debt from people who agreed to borrow money at a interest, and making people who didn't borrow the money pay for their mistake. It's not like you press a button and everythings all good, someone has to pay for it
That's a redistribution of money from taxpayers to students (some of which are taxpayers) who had debt (30k-100k each) that lived in a certain generation. Would you advocate giving anyone else in later generations the same benefit? 30k-100k for each student over generations would push money into banks and schools while also raising their demand because now everyone wants to go to school. The colleges will raise their prices and make the lower class demand more money to go to the schools; they will probably repeat the process. All of which while paying the bureaucrats for the process, making them rich for orchestrating the whole thing. If the class that you funnel money into because they create things for you, is getting taxed by you for the something else, they will lower the wages. In turn, the lower class will demand more wages through the bureaucratic model rather than the business model, redistributing money from the rising businesses and the middle class to the bureaucrats into all the lower class, including the lazy people, rather then individually based on merit and confidence. This process would probably repeat forever, as long as the elites [bureaucrats and friends] keep the majority of people happy enough not to care . By then they will have so much control they can keep small businesses at guard with regulation and funnel money back into each other by getting you to pay for what "you" want but owned and operated by yours truly, likely through the "illegal" process of insider trading. The small/big businesses and middle class have to pay to make the majority not rise up against the elitists. I base my opinion on the small scale form of this we see today (perhaps the equivalent of one generation through multiple small grants over generations). Unfortunately it is happening on several fronts, so the costs seem cheaper (in the sum of it, especially with the trick of inflation) for different "benefits".
Hindering growth is when you give out government loans to people who are otherwise unqualified or too risky to receive private loans for education. Whats worse is bailing out said individuals, as they do not learn from their debts, and are further encouraged to take more financial risks. Not to mention it lowers the value of your money, aka higher cost of living. Mal-investment is bad, and without a loan guaranteed by government education costs would go down, because you wouldn't have an artificial demand (higher tuition) in the education sector caused by guaranteed federal loans. The pay as you go model would become more commonplace and affordable with more rigorous loan standards.
Theres a reason I'm not in school right now. I wanna wait for this loan bullshit to get straightened out. I don't need to be butt fucked by the system then walk out with a paper that gets me a job that I could get without it and spend years paying off my "higher education".
That's the major malfunction of this Country,We as a nation of do gooders want to take care of every lost soul,and police the world to boot. No wonder this country is broke,we give it all away.. People need to realize that debt is not something you take to the grave (they might as well do it everyone else does). Everyone needs to pay their own debt and wake up and stop trying to keep up with their neighbors and cut back on their own debt and than the national debt will start to correct itself.
Smoother youths of this new nation need to loose the attitude that the world owes me a living,and learn how to work first and rewards will come to those who do.. Everyone is lazy and wants it now. Don't get me started please....... Amen
Student loans are a system designed to KEEP you in debt, so no I do not think they will ever bailout student loans, unfortunately.