should not have to pay the loans of gender studies majors

[Al Doggity]

I think that might force the banks and/or the government to do better oversight of where all this money is going. The current situation seems like a massive handout for lots of slackers to goof off for 4 years.

So, in  general, are bankruptcies understandable for businesses and individuals?

They signed the papers to take the money. I don't see it as different from any other loan. I don't think the banks and auto companies
They should let the loans fail. Let the banks miss their payments and maybe they'll stop lending out money for bogus degrees. Maybe they'll be the ones to do the oversight and say, "Hey, I'll loan you 50k for your degree, but you aren't studying gender studies for that much money. If you want to study that you pay your own money. If you want the banks money you'll study something that has earning potential." Right now they're just handing out money to kids, the universities are taking it, and the banks are getting interest. We're all funding this silliness.

Do you think the degrees eligible for loan forgiveness are gender studies?

[GymnJuice]

So, in  general, are bankruptcies understandable for businesses and individuals?

I'm not a banking guy so I'll wait for Bhanks to confirm, but I assume the banks have to do their due diligence and when they make a loan that doesn't get repaid they go after the person's assets to recoup. I don't see why a loan for school should be any different. If the kids can't repay it let them declare bankruptcy like businesses and whoever else, I don't have any objection to that. Then in turn the banks should start looking closer at who they give out loans to.

Throwing "free money" at this won't fix the problem. People will continue to use other people's money to get worthless degrees.

Do you think the degrees eligible for loan forgiveness are gender studies?

I figure they are making all degrees eligible, which would lead to people asking why we are paying for gender studies degrees like in the video on the first post. I think it is a good thing that people are questioning where their money is going and what it is actually paying for. I think DeSantis makes good points in this video.

[SF1900]

I majored in art and theater and minored in gender studies.

[Grape Ape]

The issue is that this only benefits people who took out loans at a certain period of time.

It doesn't help anyone who is about to take a loan, so the root cause has not been solved.  It's just a select group of people getting a random "bonus".

I am hesitant to be hyper critical of the situation, as I am fortunate and appreciative that I was able to graduate college without having to take a loan, and realize that not something everybody gets to do.

[Al Doggity]

I'm not a banking guy so I'll wait for Bhanks to confirm, but I assume the banks have to do their due diligence and when they make a loan that doesn't get repaid they go after the person's assets to recoup.

Have you heard of this thing called the 2008 financial crisis?

I don't see why a loan for school should be any different. If the kids can't repay it let them declare bankruptcy like businesses and whoever else, I don't have any objection to that. Then in turn the banks should start looking closer at who they give out loans to.

This loan relief applies to FEDERAL programs, but you don't think there might be any adverse effects to filing  for bankruptcy?

Throwing "free money" at this won't fix the problem. People will continue to use other people's money to get worthless degrees.

Is that the problem? People with worthless degrees are seeking free money? There are doctors who have trouble paying off their student loans. What is the rough number or percentage of people seeking loan relief who have worthless degrees? 

I figure they are making all degrees eligible, which would lead to people asking why we are paying for gender studies degrees like in the video on the first post. I think it is a good thing that people are questioning where their money is going and what it is actually paying for. I think DeSantis makes good points in this video.

Which seems non-sensical to me. People use degrees in differing fields all the time. There are high-paying jobs where someone could utilize a gender studies degree. In my company, it would be a benefit in HR and some marketing positions, for example. The majority of people in marketing didn't major in marketing.  Furthermore, people change fields all the time.  Is someone who leaves finance to work in the public sector or become a teacher more deserving of loan forgiveness than someone who works in a field where they use their "worthless" degree?

[Al Doggity]

The issue is that this only benefits people who took out loans at a certain period of time.

It doesn't help anyone who is about to take a loan, so the root cause has not been solved.  It's just a select group of people getting a random "bonus".

Is that a feature or a bug?  Was the goal to overhaul how college education is funded or to create quick generational relief during a time of intense economic pressure which could stunt the livelihood of the majority of people in a certain age group?

[Rambone]

I majored in art and theater and minored in gender studies.

Is that how you met Rory?

[GymnJuice]

Have you heard of this thing called the 2008 financial crisis?

This loan relief applies to FEDERAL programs, but you don't think there might be any adverse effects to filing  for bankruptcy?
Is that the problem? People with worthless degrees are seeking free money? There are doctors who have trouble paying off their student loans. What is the rough number or percentage of people seeking loan relief who have worthless degrees? 

Which seems non-sensical to me. People use degrees in differing fields all the time. There are high-paying jobs where someone could utilize a gender studies degree. In my company, it would be a benefit in HR and some marketing positions, for example. The majority of people in marketing didn't major in marketing.  Furthermore, people change fields all the time.  Is someone who leaves finance to work in the public sector or become a teacher more deserving of loan forgiveness than someone who works in a field where they use their "worthless" degree?

Come on bro. These kids signed for a loan. The responsibility for repayment fell on them, their cosigners, or the banks, or the universities.

Joe Biden now says, "Aw shucks, don't make them pay. It's free."

But it isn't really free, is it? It is my money. It is the taxpayers money. Instead of the banks suffering I am. I've effectively been turned into the bank. And I'm saying this is bogus. If it is my money being given for loans I want to do reasonable loans with a high change of repayment. If you're majoring in gender studies, art history, Roman literature, then I don't think you will be able to repay it. If you major in math, engineering, business then maybe you will. I don't want to be in the position of picking which majors are more likely to repay their loans, but as the taxpayer the government is using my money to pay for this stuff so now I should have a say in what I'm paying for. If you are paying your own money or taking all the risk on your own back then major in whatever you want.

[Grape Ape]

Is that a feature or a bug?  Was the goal to overhaul how college education is funded or to create quick generational relief during a time of intense economic pressure which could stunt the livelihood of the majority of people in a certain age group?

The goal was to purchase votes for the midterm elections.

Education reform is critical and necessary.

This is just giving money to a small subset of Americans, while ignoring those equally struggling who didn't fall into this criteria.

As stated, I'm not entirely unsympathetic, but believe a different solution would be more fair to all - possibly eliminating interest, or giving credit for interest paid to be applied to the principal, etc.

[SF1900]

Is that how you met Rory?

Yes! We are both auditioning for Shakespeare!

[Al Doggity]

Come on bro. These kids signed for a loan. The responsibility for repayment fell on them, their cosigners, or the banks, or the universities.

These kids signed for a loan
These kids signed for a loan
These kids signed for a loan

Yeah, it's not like people re-negotiate, default or back out of agreements at every other stage of their life. It's not like trump filed bankruptcy six times. It's not like the richest man in the world's corporation is  subsidized into profitability by the gov't and he's not currently engaged in a lawsuit to back out of a multi-billion dollar biz agreement because his portfolio value fell. But, yeah, c'mon. bro, these KIDS - you agree they were kids- definitely shouldn't have a reasonable shot at scaling down debts they incurred before they were of drinking age. Because everyone else in the history of America who signed on the dotted line, followed the agreement to the letter. 

[Irongrip400]

I see your point Al, but I would be more on board if there was a way for people to prove they used the money solely for education in order to have it forgiven. I don’t want to have my tax dollars going to pay off the loans of some jerk off who went to school for two years, got 15 credits and spent the rest partying and going on spring break. It shouldn’t be pain free to get your loan forgiven, there needs to be some oversight.

[GymnJuice]

These kids signed for a loan
These kids signed for a loan
These kids signed for a loan

Yeah, it's not like people re-negotiate, default or back out of agreements at every other stage of their life. It's not like trump filed bankruptcy six times. It's not like the richest man in the world's corporation is  subsidized into profitability by the gov't and he's not currently engaged in a lawsuit to back out of a multi-billion dollar biz agreement because his portfolio value fell. But, yeah, c'mon. bro, these KIDS - you agree they were kids- definitely shouldn't have a reasonable shot at scaling down debts they incurred before they were of drinking age. Because everyone else in the history of America who signed on the dotted line, followed the agreement to the letter. 

What does this have to do with Trump? If he declares bankruptcy then I don't feel badly for the banks who lose out on their money. If the kids who took loans can't repay them then let the banks or their cosigners or the schools deal with it. It shouldn't come out of my pocket.

The country needs education reform. Throwing "free money" at this won't fix the problem.

[Al Doggity]

The goal was to purchase votes for the midterm elections.

Education reform is critical and necessary.

This is just giving money to a small subset of Americans, while ignoring those equally struggling who didn't fall into this criteria.

As stated, I'm not entirely unsympathetic, but believe a different solution would be more fair to all - possibly eliminating interest, or giving credit for interest paid to be applied to the principal, etc.

Things that could have been changed or reversed immediately by a future administration. I don't think those things are "more fair to all". 

[Al Doggity]

I see your point Al, but I would be more on board if there was a way for people to prove they used the money solely for education in order to have it forgiven. I don’t want to have my tax dollars going to pay off the loans of some jerk off who went to school for two years, got 15 credits and spent the rest partying and going on spring break. It shouldn’t be pain free to get your loan forgiven, there needs to be some oversight.

It isn't pain free. There is an application process and for most people, it only covers a portion of their loans.

[Al Doggity]

What does this have to do with Trump? If he declares bankruptcy then I don't feel badly for the banks who lose out on their money. If the kids who took loans can't repay them then let the banks or their cosigners or the schools deal with it. It shouldn't come out of my pocket.

They signed the papers to take the money. I don't see it as different from any other loan. I don't think the banks and auto companies should have been bailed out and I don't think these slacker millenials should be bailed out either.

If you don't see it as any different than any other loan, then great. It's now a lot less different than any other loan.  I don't know how to make it clearer for you.

[GymnJuice]

If you don't see it as any different than any other loan, then great. It's now a lot less different than any other loan.  I don't know how to make it clearer for you.

I am paying their loans. Other defaulted loans are eaten by the banks.

[Hulkotron]

What jobs require a gender studies degree?

[GymnJuice]

What jobs require a gender studies degree?

Health Czar or gender studies professor 

[Dave D]

Isn't this more an argument that these loans should be forgiven? If  they're "failed degrees", then why should recipients be on the hook for them for most of their working lives based on financial choices they made before they were even allowed to legally drink?

Bingo!

The educational system should be made to be held accountable letting students leave with “worthless” educations.

[ThisisOverload]

The goal was to purchase votes for the midterm elections.

Education reform is critical and necessary.

This is just giving money to a small subset of Americans, while ignoring those equally struggling who didn't fall into this criteria.

As stated, I'm not entirely unsympathetic, but believe a different solution would be more fair to all - possibly eliminating interest, or giving credit for interest paid to be applied to the principal, etc.

I agree.

The problem i see, at least in the last 20 years; is that these kids rack up the debt, graduate and then do everything EXCEPT pay it back.

I've been hiring young engineers straight out of school for two decades. It's easier to train them young before they are set in their ways.

I can tell you, at least 75% of the time, that these "kids" as we are calling them, spend money on everything except their loans. I can't tell you how many of them buy brand new cars, expensive apartments, houses, engagement rings, vacations, etc. All within a few years of graduation, while paying the MINIMUM on their debts.

Now, it's none of my business what people do with their money, but it is my business how my tax dollars are spent. This is the dumbest thing i've heard of, but i know most people don't understand economics and will vote for this crap.

It's true a lot of "kids" don't understand useless degrees, but to be honest, that's complete shit because all of the career fairs have these things listed. Students will start in something difficult and then switch to some bullshit degree when they realize the amount of effort it takes. I see it all the time.

That is not my problem. If you don't understand that a chemical engineering degree will make you more money than sociology, you are doomed already.

[Al Doggity]

I am paying their loans. Other defaulted loans are eaten by the banks.

Good, we've gotten past the pretense that this is about  useless degrees or kids being irresponsible.

And, no, your taxes don't pay anything in regards to this program. It's a self-sustaining  program that is actually profitable. That's one of the main reasons that interest wasn't cut  as another poster suggested upthread.

[cart@@n]

[Bevo]

Every single post from “gym rat” is about politics this and that, must suck for whoever lives with you to listen to this drivel 24/7

[Agnostic007]

Isn't this more an argument that these loans should be forgiven? If  they're "failed degrees", then why should recipients be on the hook for them for most of their working lives based on financial choices they made before they were even allowed to legally drink?

In my opinion that is not a very strong argument. Using that logic, any service member should be able to just quit since they made that decision to join before they were legally allowed to drink. You go to college typically at 18 which is a legal adult in any state. Yeah, some were mislead or even desired dead end degrees, but should it really fall in my lap to absorb the cost of their bad decision?