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You borrow money to pay for a service, and the company goes out of business. Poof! Your loan is cancelled. Taxpayers to the rescue.

By MisterLefty follow MisterLefty   2018 Dec 14, 4:15am 1,631 views   31 comments   watch   nsfw   quote   share    


Dept. of Education to cancel $150 million in student loan debt

The U.S. Department of Education announced Thursday it would automatically cancel $150 million in student loans connected to for-profit colleges that closed in recent years.

The move was made under an Obama-era policy that a federal judge in October essentially forced U.S. Secretary of Education Betsy DeVos to implement. The story was first reported by Politico.

The discharge of loans applies automatically to about 15,000 students who attended now-defunct colleges that closed between Nov. 1, 2013, and Dec. 4, 2018, according to the department's announcement.

About half of those affected attended Corinthian Colleges, Inc., a chain that closed on April 27, 2015, the department stated. Other students who attended recently closed campuses or who believe they were otherwise defrauded can still apply to have their loans canceled, the department said.

https://www.nbcnews.com/news/us-news/dept-education-cancel-150-million-student-loan-debt-n947821

1   Shaman   ignore (2)   2018 Dec 14, 5:08am     ↓ dislike (0)   quote   flag        

Good.
Debt is slavery and this kind of debt shouldn’t exist. Americans can’t be productive consumers with “the price of admission to the workforce” hanging over their heads the rest of their lives.
Our government spends money on much sillier things.
2   APOCALYPSEFUCKisShostakovitch   ignore (52)   2018 Dec 14, 6:08am     ↓ dislike (0)   quote   flag        

The debt could have been sold to entrepreneurs who could jack the effective rates to 400 percent and produce profits for their INVESTORS! for decades, until of course those same INVESTORS! lobby the government for reasonable legislation to make the debt payable by the borrowers' survivors.

Why does AMERICA! want to reward irresponsibility at the expense of JOB! CREATORS! and INVESTORS! ?

Why does AMERICA! hate success?
3   MrMagic   ignore (11)   2018 Dec 14, 8:08am     ↓ dislike (0)   quote   flag        

Quigley says
Good.
Debt is slavery and this kind of debt shouldn’t exist. Americans can’t be productive consumers with “the price of admission to the workforce” hanging over their heads the rest of their lives.


Yes,

The government needs to protect stupid people from themselves... you know, the ones that don't know how to use a calculator.
4   HeadSet   ignore (3)   2018 Dec 14, 8:12am     ↓ dislike (0)   quote   flag        

Debt is slavery and this kind of debt shouldn’t exist.

Then the loans should never be made. Easy student loans is what caused college costs to skyrocket, and made it more difficult for savers, scholarship earners, and work there way through college students to afford to go. I say fuck the irresponsible borrowers up the ass with a "Hey You" inspired "Michele-O-Max" strap-on.
5   rd6B   ignore (1)   2018 Dec 14, 8:25am     ↓ dislike (0)   quote   flag        

HeadSet says
I say fuck the irresponsible borrowers up the ass with a "Hey You" inspired "Michele-O-Max" strap-on.

I'd say that Corinthian College administration needs to be fucked with an elephant-sized dildo. Unfortunately they made off like bandits leaving taxpayers hanging.
6   Shaman   ignore (2)   2018 Dec 14, 8:30am     ↓ dislike (1)   quote   flag        

MrMagic says
The government needs to protect stupid people from themselves


I think high school students qualify as “stupid people” considering we give them zero courses in economics or personal finance before encouraging them to dive deeply into debt to someday (hopefully) obtain their dream job.
We protect children from all sorts of dangers and nobody complains about “cheating Darwin.” Getting into horrible crippling inescapable debt is just as bad as a major trauma and can lead to depression and suicide.
We shouldn’t allow corporations and institutions to take advantage of the naivety of youth to enslave the next generation and each successive one.
From a capitalist point of view, doing so also cripples our economy because a worker who is in crippling debt isn’t much of a consumer.
7   HeadSet   ignore (3)   2018 Dec 14, 8:34am     ↓ dislike (0)   quote   flag        

I'd say that Corinthian College administration needs to be fucked with an elephant-sized dildo. Unfortunately they made off like bandits leaving taxpayers hanging.

Definitely, and there are plenty of other schools that need that treatment. Even those that stay in business are just diploma mills catering to people without the academic chops to do true coursework, all at taxpayer expense. But none would exist without the enablers and their easy loans.
8   HeadSet   ignore (3)   2018 Dec 14, 8:40am     ↓ dislike (0)   quote   flag        

I think high school students qualify as “stupid people” considering we give them zero courses in economics or personal finance before encouraging them to dive deeply into debt to someday (hopefully) obtain their dream job.

Then definitely do not give these kids loans. From what you are saying, giving the loans to the financial illiterate is like giving a person who has never ridden a motorcycle a crotch rocket and sending them on their way.

I really detest the "Give and Forget" policy of cancelling any student loans. Maybe paying back that loan is the "education" they need.
9   rd6B   ignore (1)   2018 Dec 14, 8:43am     ↓ dislike (0)   quote   flag        

HeadSet says
But none would exist without the enablers and their easy loans.

100% agreed. If gov't would loan 5K per year max, tuition in those schools would magically drop to 5K per year. At 0 K per year, all online diploma mills would go out of business.
Also, it would be difficult to cut off all types of gov't loans for education at once as there are genuinely poor people who would not be able to pay anything and would not get any private loans because they are poor. But loans could be limited to a relatively small amount (no more than 5-10K per year) which would solve 95% of problems.
10   Shaman   ignore (2)   2018 Dec 14, 8:54am     ↓ dislike (0)   quote   flag        

HeadSet says
From what you are saying, giving the loans to the financial illiterate is like giving a person who has never ridden a motorcycle a crotch rocket and sending them on their way


It’s worse than that. It’s giving putting them in a super cross on that crotch rocket...without a helmet or gear...and a sticky accelerator. Sure they have a minuscule chance of coming in first. But they have a much greater chance of crashing horribly.
If we can’t punish the people who committed this atrocity, at least we can help the victims and prevent it from happening again.

No loans greater than $3000/semester for college of any sort. No loans if you’re not in a degree program with a realistic chance of employment, or at least are taking at least 50% science, business, or technology classes. And mandatory intern programs facilitated by the state to get your some career experience in your chosen field.
11   HeadSet   ignore (3)   2018 Dec 14, 8:56am     ↓ dislike (0)   quote   flag        

Curtail the easy loans and the H1B type programs and this might happen:

Apple decides it needs engineers. It also wants diversity. Therefore, it recruits minorities and women for a scholarship program that pays for school as part of a post grad work commitment to Apple. You can be sure that Apple would make sure that selected college provides quality engineers. Rural areas have used a similar plan to get Doctors to their community, and the Military does same with ROTC and Service Academies to acquire some officers.
12   rd6B   ignore (1)   2018 Dec 14, 8:58am     ↓ dislike (0)   quote   flag        

HeadSet says
Curtail the easy loans and the H1B type programs

In my field outsourcing is much, much more worse than H1's
13   HeadSet   ignore (3)   2018 Dec 14, 9:00am     ↓ dislike (0)   quote   flag        

No loans if you’re not in a degree program with a realistic chance of employment, or at least are taking at least 50% science, business, or technology classes.

And maybe these loans/grants sponsored and provided by professional organisations as recruiting tools. That will insure the money is spent well.
14   Shaman   ignore (2)   2018 Dec 14, 9:04am     ↓ dislike (0)   quote   flag        

I agree. These companies want fully trained workers with lots of expensive technical skill but they don’t want to pay for either the education or the salary commanded by such a proficient worker!
H1B is a total cop out for them. They remove the cost of the education completely, and claim “diversity” because they hired 30,000 (super racist) Indians.
15   HeadSet   ignore (3)   2018 Dec 14, 9:10am     ↓ dislike (0)   quote   flag        

d6rB says
HeadSet says
Curtail the easy loans and the H1B type programs

In my field outsourcing is much, much more worse than H1's


If I may ask, what field is that? My company has as part of its business a call center. Some new rules have come down requiring call centers to have language speakers if a certain population (very small) of the service areas speaks that language. So for us, we need to have 24 hour Spanish and Tagalog speakers. The amount of non-English speakers that use out service is minuscule, and despite efforts, we cannot recruit such speakers. Therefore, we are forced to outsource calls to comply. Cheaper, but not as quality as locals. Also, now I have to implement "For English Press 1, Para Espanol, marque el dos" or similar.
16   rd6B   ignore (1)   2018 Dec 14, 9:35am     ↓ dislike (0)   quote   flag        

HeadSet says
If I may ask, what field is that

Chem/ChemE
Pharma was outsourcing like crazy to Chindia.
17   MisterLefty   ignore (0)   2018 Dec 14, 9:53am     ↓ dislike (0)   quote   flag        

Where to draw the line?

Recall law school grads suing their schools as they graduated without decent jobs.

What about 30 year olds who took out loans from Corinthian?

Let's take this out of the school context. When does the gubberment make folks whole who took out loans to purchase a service from a company that went out of business? Did you receive the service? Yes, we took the courses. OK,......
18   NoCoupForYou   ignore (3)   2018 Dec 14, 9:58am     ↓ dislike (0)   quote   flag        

d6rB says
Chem/ChemE


D6rB, can you recommend some good online Chem Courses? I'm on a crusade to rectify my hormone riddled failure to pass HS Chemistry. I actually find it fascinating.

In Chemistry Class I was too busy playing air guitar and tickling girls.

This is just for shits and giggles, not a career change.
19   Evan F.   ignore (0)   2018 Dec 14, 10:00am     ↓ dislike (0)   quote   flag        

I majored in chem! I loved the topic. Pchem was my fav class.

Of course then I went and got an MFA in film school.
20   Shaman   ignore (2)   2018 Dec 14, 10:05am     ↓ dislike (0)   quote   flag        

MisterLefty says
law school grads suing their schools as they graduated without decent jobs.



Hahahahahaha! Yes! Give them the tools to sue their alma mater! The law schools deserve it for creating fresh human piranhas to prey upon society at large! I hope their graduates sue them all into insolvency!
21   Ceffer   ignore (5)   2018 Dec 14, 10:10am     ↓ dislike (0)   quote   flag        

Corinthian couldn't afford diploma printers for third worlders and ghetto whompers any more? Wonder how much of the money went for clubbing and blow.
22   rd6B   ignore (1)   2018 Dec 14, 11:09am     ↓ dislike (0)   quote   flag        

TwoScoopsOfSpaceForce says
D6rB, can you recommend some good online Chem Courses?

You need to be very careful - most of online courses are complete crap.
These are pretty good - I have looked only at exams and lecture handouts though.
https://ocw.mit.edu/courses/chemistry/
23   rd6B   ignore (1)   2018 Dec 14, 11:12am     ↓ dislike (0)   quote   flag        

MisterLefty says
Recall law school grads suing their schools as they graduated without decent jobs.

Lately, there is a new trend - students threaten to sue school if they get poor grades "because that decreases their job opportunities".
24   SunnyvaleCA   ignore (1)   2018 Dec 14, 11:31am     ↓ dislike (0)   quote   flag        

Quigley says
Debt is slavery and this kind of debt shouldn’t exist. Americans can’t be productive consumers with “the price of admission to the workforce” hanging over their heads the rest of their lives.
Our government spends money on much sillier things.

Right, so now the American Taxpayer has extra debt instead.

Except
• the American Taxpayer didn't choose to attend a fraudulent "university"
• the American Taxpayer had no chance of ever getting benefit from those loans (only the people getting the loans reap the potential benefits)
• If students pre-pay at most a single year of tuition, only those enrolled within the most recent year before going under would have paid money and gotten nothing.
• If the students thought they were ripped off, they should have fought that in courts years ago. It would have forced the "university" into bankruptcy much earlier, saving countless future students from the fraud.
25   HEYYOU   ignore (47)   2018 Dec 14, 11:57am     ↓ dislike (0)   quote   flag        

How many failure Republicans will enjoy this socialism? There are plenty,toda, happy to receive free money
hand-out & subsidies.

Brings to mind the TBTF banks that Republicans bailed-out with American hard earned tax dollars rather than place them in receivership & let the stockholders eat their own shit.

TBTF & WMD causes the stupid Rep/Cons to keep quiet.
When one has nothing,they can only say stupid shit.
26   OccasionalCortex   ignore (5)   2018 Dec 14, 1:07pm     ↓ dislike (0)   quote   flag        

Quigley says
Debt is slavery and this kind of debt shouldn’t exist.


Except they signed up for it voluntarily. Can't claim it is slavery in this case.
27   MrMagic   ignore (11)   2018 Dec 14, 7:55pm     ↓ dislike (0)   quote   flag        

Quigley says
I think high school students qualify as “stupid people” considering we give them zero courses in economics or personal finance before encouraging them to dive deeply into debt to someday (hopefully) obtain their dream job.


True, they definitely need s course explaining how bad taking on that debt is.

Quigley says
We shouldn’t allow corporations and institutions to take advantage of the naivety of youth to enslave the next generation and each successive one.


We don't. That's why there's this thing called "their parents". You do know many parents sign on to Parent Plus loans for their kids. What do you propose we do about the financially illiterate and stupid parents?

MegaForce says
Except they signed up for it voluntarily. Can't claim it is slavery in this case.


But, but , but the banks just gave me the money.... sounds a lot like the last housing blow up, doesn't it?
28   Shaman   ignore (2)   2018 Dec 15, 3:32am     ↓ dislike (0)   quote   flag        

MrMagic says
We don't. That's why there's this thing called "their parents". You do know many parents sign on to Parent Plus loans for their kids.


The kids can take out many thousands of dollars in student loans all by themselves without parents. I know because I did it. I paid them all back, all 50 grand. But I worked like an angry bastard to do so in a timely manner.
29   MisterLefty   ignore (0)   2018 Dec 15, 4:36am     ↓ dislike (0)   quote   flag        

This will explain why Obama struck down these loans:

"...for-profit colleges are largely drawing low-income students, students of color and women, putting these residents at risk of incurring more debt compared to their peers at nonprofit schools, according to a new report."

https://www.blackenterprise.com/profit-colleges-still-not-option/
30   HEYYOU   ignore (47)   2018 Dec 15, 11:20am     ↓ dislike (0)   quote   flag        

The Housing Trap
"You're being set up to spend your life paying off a debt you don't need to take on,"

Should be called the Immediate Gratification Trap.
31   Hircus   ignore (0)   2018 Dec 15, 1:17pm     ↓ dislike (0)   quote   flag        

Quigley says

No loans greater than $3000/semester for college of any sort. No loans if you’re not in a degree program with a realistic chance of employment, or at least are taking at least 50% science, business, or technology classes.


I agree, we need to stop giving govt money to useless majors.

I think they should introduce market aspects/forces to the loans, so that majors which have high chances of success have more loan money available and at lower rates. Those who wish to study crap like gender studies can still do it, but the price of their loans would reflect their lower chance of economic success. Naturally, money would flow to where it's best used.

People need a cold hard splash of reality. They need to see real stats on what each major at each school is likely to give them - none of that "oh, the average pay is low but if you work hard the sky is the limit" crap that snowflakes gobble up.

I sympathize with children who make poor college decisions. It's such an important decision, yet I feel not much quality time is invested into helping them prepare for the decision. I have met SOOO many people who chose a major based on the horrible saying "chose something you'll love, because you'll be great at it, and you'll never work a day in your life." While it's somewhat true, it takes a complicated multifaceted criterion decision and dumbs it down into one with little criteria. While I'm not suggesting people totally chase money at the expense of happiness, I do think people need to be realistic and find a balance between happiness and money. All those art majors who thought they would "be happy doing what they love every day" are miserable because they went into debt and struggle to pay their bills. Debt can be a life ruining trap.

Debt forgiveness isn't the way to solve this problem. We need to stop it at the source and stop enabling people who, despite their hard work and good intentions, will shoot themselves in the foot.

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