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TaJ said:
All debts should be dischargable in bankruptcy. The stupidest thing we've done as a nation was "reform" the bankruptcy laws to make some classes of debt stickier than others. It removed all desire on the part of lenders to actually care about the quality of person they were lending to. If debts can never be discharged then that loan will always be on the bank's books as an asset, even if it won't be repaid for 100 years, so they really don't NEED to care that loans are non-performing.
It seems like common sense that making people more responsible for their decisions should improve the economy, not subvert it. But common sense hasn't had any connection to our economic reality for quite some time now, thanks to the financial sector.
# 24 November 2010 at 11:42 am

TaJ said:
Let me self-correct here and say it's maybe not THE stupidest thing we've done as a nation. It's A stupid thing though, certainly.
# 24 November 2010 at 11:43 am

20smoney said:
Ha, nice qualifying statement. Good points though overall.
Question: Is college education a bubble? Thoughts?
# 25 November 2010 at 10:13 am

financier said:
I really think college education is overrated. There are many alternatives of completing your undergraduate and masters degree without getting any loan. It is more frustrating to see people getting 100k loan to attend a prestigious college to graduate with a degree that pays only 50-60k a year. I think we should teach students that they can work and study at the same time. The quality of education through community colleges and public colleges are as much good as private colleges. We should completely avoid student loans over 20k over the entire duration of getting a college degree instead of trying to discharge in on bankruptcy. It avoids any student to be on that situation. Mastering personal finances is just as important as getting a good GPA, in fact its worth much more. Bankruptcy just takes away responsibilities from a person.
# 25 November 2010 at 10:55 pm

pension transfers said:
If you are a member of a defined contribution company scheme or a personal pension, when you come to retire you will exchange the pension pot you’ve built up over the years for an annuity. The amount of regular pension you get in retirement will depend upon the size of your pension pot and the annuity rate you get for your chosen annuity.
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http://www.pensionfinder.org.uk/news/annuity-rate…
http://www.pensionfinder.org.uk/guides/pension-tr…
# 27 November 2010 at 11:57 am

TaJ said:
The easy availability of student loans (due to the fact that they're incredibly hard to discharge) inflates the cost of college… which leads more people to need larger student loans.
This is the EXACT SAME THING that happened with easy mortgages and the housing bubble.
I don't know if college education itself is a bubble. I mean, not getting any kind of college education puts a serious crimp on your earnings potential. But college education COSTS are bubbletastic. People taking out student loans now are "buying in at the top". But their choices are limited in a way that the housing bubble wasn't. You can't rent a degree!
# 28 November 2010 at 12:32 pm

Luiza Warren said:
Well, student debts on loans is a really urgent problem as a number of people have these debts. Education is very expensive today and less people can afford to pay cash. Therefore, a lot of people are just made to take these loans in order to get higher education. Usually after the graduation most of students who have loans face the problem with repaying them as the salary of the first job is usually not enough to cover the daily expenses and manage the monthy payments. Thus, a number of people try to refinance their student loans or negotiate with thecreditors as for the student loans consolidation. http://consolidatedebtsloans.com/student-loans-co…
# 29 December 2010 at 7:45 am

Mary said:
Student loan hell, is exactly right. When considering debt consolidation or debt settlement, i know that the creditors are unwilling ot include them into these programs. Its sad really
# 8 March 2011 at 10:42 pm

mark said:
I have to agree with Mary, student loans are very difficult to deal with. We often get so many people whom just completed college yet have $80k+ in student loan debt. It's insane imo. With the economy the way it is, its hard for these people to pay it all back
# 3 May 2011 at 8:56 pm

loan compliance said:
how much was the interest rate of that loan?
# 31 May 2011 at 4:41 am

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