zlacker

[parent] [thread] 55 comments
1. visarg+(OP)[view] [source] 2025-01-22 12:26:58
The problem with allowing student debt to rack up to these levels and then cancelling it is that it would embolden universities to ask even higher tuition. A second problem is that not all students get the benefit, some already paid off their debts or a large part of it. It would be unfair to them.
replies(7): >>jimkle+V1 >>Twirri+6F >>aylmao+3S >>bun_at+4S >>thfura+Zz1 >>_aavaa+g42 >>datavi+HM7
2. jimkle+V1[view] [source] 2025-01-22 12:39:08
>>visarg+(OP)
Yes but every policy is unfair. It literally is choosing where to give a limited resource, it can never be fully fair.

And there could be a change in the law that allows people to forgive student debt in personal bankruptcy, and that could make sure higher tuition doesnt happen.

replies(2): >>greent+pb >>_heimd+Yo
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3. greent+pb[view] [source] [discussion] 2025-01-22 13:44:02
>>jimkle+V1
It would do more good in K12 or pre-K than it would paying off private debts held by white collar highly educated not rich yet due only to their young age university-bros.
replies(2): >>ajmurm+8j >>jimkle+ll1
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4. ajmurm+8j[view] [source] [discussion] 2025-01-22 14:30:43
>>greent+pb
It truly is astonishing. We have kids who cannot afford school lunches, people working multiple blue-collar jobs and yet the problems of people who are statistically better off than average constantly jump to the front. People complain about Effective Altruism because of one dude messing up big but it would behoove everyone to read up on the basic philosophy of it before suggesting how we best spent billions to help reduce suffering.
replies(2): >>jimkle+yl1 >>freeja+xA3
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5. _heimd+Yo[view] [source] [discussion] 2025-01-22 15:06:10
>>jimkle+V1
> Yes but every policy is unfair. It literally is choosing where to give a limited resource, it can never be fully fair.

I don't think that holds for a policy of non-intervention. People usually don't like that solution, especially when considering welfare programs, but it is fair to give no one assistance in the sense that everyone was treated equally/fairly.

Now its a totally different question whether its fair that some people are in this position today. The answer is almost certainly no, but that doesn't have a direct impact on whether an intervention today is fair or not.

replies(1): >>jimkle+al1
6. Twirri+6F[view] [source] 2025-01-22 16:33:13
>>visarg+(OP)
If we block on the basis that previous people didn't have something and that it would be unfair to them we would literally never make any progress in this world.

Instead of starting a new better world, we'll just stick with the old one that sucks because we don't want to be unfair. What an awful, awful way to look at the world.

7. aylmao+3S[view] [source] 2025-01-22 17:40:16
>>visarg+(OP)
With half a trillion dollars you can also open a lot of universities. Increased supply would lower prices for everyone. One could even open public universities and offer education at very reduced or no tuition.
replies(2): >>itsokt+NI1 >>_uxvx+kR1
8. bun_at+4S[view] [source] 2025-01-22 17:40:23
>>visarg+(OP)
> not all students get the benefit, some already paid off their debts or a large part of it.

I'm one of the people who paid off a large portion of debt and probably don't need this assistance. However, this argument is so offensive. People were encouraged to take out debt for a number of reasons, and by a number of institutions, without first being educated about the implications of that. This argument states that we shouldn't help people because other people didn't have help. Following this logic, we shouldn't seek to help anyone ever, unless everyone else has also received the exact same help.

- slaves shouldn't be freed because other slaves weren't freed - we shouldn't give food to the starving, because those not starving aren't getting free food - we shouldn't care about others because they don't care about me

These arguments are all the greedy option in game theory, and all contribute to the worst outcomes across the board, except for those who can scam others in this system.

The right way to think about programs that help others is to consider cooperating - some people don't get the maximum possible, but they do get some! And when the game is played over and over, all parties get the maximum benefit possible.

In the case of student debt, paying it off and fixing the broken system, by allowing bankruptcy or some other fix, would benefit far more people than it would hurt; it would also benefit some people who paid their loans off completely: parents of children who can't pay off their loans now.

In the end the argument that some already paid off their debts is inherently a selfish argument in the style of "I don't want them to get help because I didn't get help." Society would be better if we didn't think in such greedy terms.

All that said - there are real concerns about debt repayment. The point about emboldening universities to ask for higher tuition highlights the underlying issue with the student loan system. Why bring up the most selfish possible argument when there are valid, useful arguments for your position?

replies(4): >>Fideli+ee1 >>indymi+Gu1 >>itsokt+fI1 >>qwytw+YL3
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9. Fideli+ee1[view] [source] [discussion] 2025-01-22 19:48:33
>>bun_at+4S
Consider that his position might be more profound than you considered it to be.

Mine is. It's about incentives. Now you can take it from there, and at least in my interpretation the rest of your rebuttal falls apart.

There is absolutely no equivalency to slavery. That is simply dishonest. Slaves didn't choose to be slaves. Do students who take on debt have no agency whatsoever to you? Did the people who paid such debts had no agency when paying?

replies(1): >>bun_at+Li1
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10. bun_at+Li1[view] [source] [discussion] 2025-01-22 20:19:14
>>Fideli+ee1
If you don't like the equivalence to slavery, pick a different example, there are three I posted and more you can probably think of on your own.

We know that the idea of a rational agent in economics is a myth, and as you mentioned, it is about incentives, as well as motives.

Students who take on debt that limits them in later life don't have all the information they need at the time they make the decision. Saying the information is available is not reasonable. These students are told they _most_ go to college to make a living.

They are not told they need to get an engineering, medical, or finance degree to make going to college worth it, economically.

They are shown all the loans they can get without an equivalent amount of effort put into educating them about the consequences those loans represent. For example, how much the loans will cost in the long run, along with estimated pay for various fields of study.

Furthermore, the loans are given for any degree program without restriction.

All the comments I made about game theory still stand, and we don't need to get into the myriad problems with our education and student loan systems. I agree they aren't perfect; I just think the argument 'I didn't get my loans paid off neither should you' is an extremely selfish one. Just because someone suffers doesn't mean everyone should. Also - in my experience people who are ready to make that selfish argument are very offended when it gets flipped on them. So they can understand intuitively the issue with the selfish position.

replies(1): >>sahila+uB1
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11. jimkle+al1[view] [source] [discussion] 2025-01-22 20:33:09
>>_heimd+Yo
Apathy is the only fair policy?
replies(3): >>nwiene+my1 >>golerg+Fy1 >>_heimd+mZ1
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12. jimkle+ll1[view] [source] [discussion] 2025-01-22 20:34:35
>>greent+pb
I'd say many of these university bros are actually parents to K12 and Pre-K and having parents not terribly in debt could help them focus more on being there for their kids and encouraging education.
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13. jimkle+yl1[view] [source] [discussion] 2025-01-22 20:36:15
>>ajmurm+8j
The problem with EA is in judging what is effective. Perhaps ridding the unforgivable student loans of parents actually helps the kids more than school lunches.

And frankly, some of the most effective altruism may be just to directly give cash to people, yet I don't know how many people in the EA community would trust people so much with unconditional cash.

replies(1): >>currym+8x1
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14. indymi+Gu1[view] [source] [discussion] 2025-01-22 21:35:10
>>bun_at+4S
> I'm one of the people who paid off a large portion of debt and probably don't need this assistance. However, this argument is so offensive.

Please spend my tax dollars on curing disease, fixing homelessness, free addiction treatment, better mental health care, improving our justice system, or even cold fusion. All of these have better outcomes than does paying off student debt.

> These arguments are all the greedy option

You left out the best argument against: there are much better things to spend money on.

I could get behind fixing Bush's biggest mistake - his bankruptcy change that moved the pendulum to lifetime debt. I'd love to see people be able to discharge student loans that are impossible to pay off or where the debtor was put in debt by a fraudulent or failed education institution.

replies(1): >>antice+ix1
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15. currym+8x1[view] [source] [discussion] 2025-01-22 21:54:14
>>jimkle+yl1
there are many many problems with the EA movement, but they do generally support unconditional cash transfers.

cash transfers are seen as the "default" baseline. the bar for charity is that it must be better than cash transfers. they do find some such charities that they claim are even better than cash transfers, but they are totally comfortable with giving people unconditional cash.

replies(1): >>jimkle+WJ2
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16. antice+ix1[view] [source] [discussion] 2025-01-22 21:55:06
>>indymi+Gu1
Student loans are not dischargeable but they are not inheritable too.
replies(1): >>indymi+FG1
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17. nwiene+my1[view] [source] [discussion] 2025-01-22 22:02:54
>>jimkle+al1
I am a bit apathetic towards giving generally wealthier people who made a bad financial choice a break, when weighed against all the different ways you could spend that money, yes.
replies(1): >>jimkle+RG2
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18. golerg+Fy1[view] [source] [discussion] 2025-01-22 22:05:37
>>jimkle+al1
Yes. For the government, apathy and inaction is always the best possible policy.
replies(2): >>_heimd+A02 >>jimkle+hH2
19. thfura+Zz1[view] [source] 2025-01-22 22:17:31
>>visarg+(OP)
Only the first of those is a real problem, but it really is a problem.
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20. sahila+uB1[view] [source] [discussion] 2025-01-22 22:28:32
>>bun_at+Li1
> They are not told they need to get an engineering, medical, or finance degree to make going to college worth it, economically.

This is a very well known fact. When I was in high school in the 2000s, it was a well known joke about how the arts / english majors won't land you a job. And even if you never heard about it, the data for average salary for graduates in the college, its dropout rates, and salary by majors is highly publicized. This isn't advanced research to do and in the age of internet, someone considering college should be able to do. I think the problem is no one believes they are the average case and instead are the exception who'll make it work.

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21. indymi+FG1[view] [source] [discussion] 2025-01-22 23:10:34
>>antice+ix1
Lifetime debt is not ok
replies(1): >>cma+rO1
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22. itsokt+fI1[view] [source] [discussion] 2025-01-22 23:25:15
>>bun_at+4S
>People were encouraged to take out debt for a number of reasons, and by a number of institutions, without first being educated about the implications of that

18 year olds don't understand what a loan is? Zero accountability?

replies(3): >>p_j_w+gJ1 >>bdangu+mM1 >>Dennis+EM1
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23. itsokt+NI1[view] [source] [discussion] 2025-01-22 23:29:17
>>aylmao+3S
Lack of supply is not the reason post secondary education is expensive.
replies(1): >>aylmao+1D3
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24. p_j_w+gJ1[view] [source] [discussion] 2025-01-22 23:31:25
>>itsokt+fI1
In the United States? For huge swaths of the population that answer is obviously no. Financial education and literacy in this country is a complete fucking joke. Very few people expected that they would be on a payment schedule that amounted to $200/mo for 30 years, and for a significant portion of them, there was really strong messaging implying that getting a college education was the only pathway to financial success, such that student loans were worth it. Two generations and counting have been massively duped.
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25. bdangu+mM1[view] [source] [discussion] 2025-01-22 23:53:52
>>itsokt+fI1
99.65% of 18-year olds 100% do not. or compound interest. the system is rigged against them to not be taught any of basic finacial literacy
replies(1): >>neilc+6Z2
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26. Dennis+EM1[view] [source] [discussion] 2025-01-22 23:55:57
>>itsokt+fI1
I'm just gonna mention that during the 2010s, Donald Trump had $287 million in loans forgiven after refusing to pay and suing the lender for "predatory lending practices."[1]

But yeah, let's make sure we squeeze every drop out of those college students, they should have understood their loan terms.

[1] https://www.forbes.com/sites/nicholasreimann/2020/10/27/repo...

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27. cma+rO1[view] [source] [discussion] 2025-01-23 00:12:45
>>indymi+FG1
I don't like it, but how would you prevent everyone from getting expensive schooling and then immediately declaring bankruptcy?

Just better redistribution and georgism/UBI type stuff but also keeping the need based stuff (medicaid, social security disability etc.) I think would be more fair and not punish people who paid off their debt or worked a job during school. Expanding free public education to K-16 and maybe ?more heavily taxing elite universities that get most of their value from the prestige of their own high ranking students who then have to pay more for it and other things like prestigious journals and even startup funds like YC, top law firms, etc. that work largely as prestige money redirectors where the value comes from those capturing the prestige but is redirected almost entireoy to just whoever kicked off the prestige flywheel early..

replies(3): >>mlazos+5W2 >>Eleven+TK5 >>indymi+gLc
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28. _uxvx+kR1[view] [source] [discussion] 2025-01-23 00:40:30
>>aylmao+3S
There are very many universities with zero or no tax, most of them in socialist countries. Why don't you go there? Maybe because none of those matter when serious education is considered.
replies(1): >>aylmao+2C3
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29. _heimd+mZ1[view] [source] [discussion] 2025-01-23 01:38:34
>>jimkle+al1
Maybe? That probably starts a definitional debate that isn't usually helpful. Is it apathetic to let nature, evolution, or markets do what they do best?

What is "fair" requires context. I could argue that nonintervention is fair or that a top-down, Marxist approach is fair depending on how "success" is defined.

replies(1): >>jimkle+PK2
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30. _heimd+A02[view] [source] [discussion] 2025-01-23 01:53:08
>>golerg+Fy1
I wish more people still held this view. When in doubt a government should avoid acting for fear of unintended consequences.
replies(1): >>jimkle+wH2
31. _aavaa+g42[view] [source] 2025-01-23 02:29:38
>>visarg+(OP)
When the bailout is for business the money always comes, but suggest even a fraction of that amount of money go towards regular people and all of a sudden there's hand wringing and talk of moral hazards.

> it would embolden universities to ask even higher tuition.

Then cap the amount you give out loans. Many of them are back by one level of the government or another.

> A second problem is that not all students get the benefit, some already paid off their debts or a large part of it. It would be unfair to them.

This is a very flimsy argument. Shall we get rid of the polio vaccine since it's unfair to those who already contracted it that our efforts with the vaccine don't benefit them?

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32. jimkle+RG2[view] [source] [discussion] 2025-01-23 09:35:26
>>nwiene+my1
> People usually don't like that solution, especially when considering welfare programs, but it is fair to give no one assistance in the sense that everyone was treated equally/fairly.

If you're saying all the different ways you could spend that money, then you're saying non-intervention for the wealthier people how made a bad financial choice, and yes-intervention for other ways in which the money could be spent, which again, is a decision on where to give limited resources.

I'm not saying I agree or don't agree with whether it would be more helpful to give it to those who have college debt or those in the US who are without a home or frankly those here in Kenya (where I am now) who if don't have money, might starve to death.

Moreover that each decision can be judged.

> Now its a totally different question whether its fair that some people are in this position today. The answer is almost certainly no, but that doesn't have a direct impact on whether an intervention today is fair or not.

If we approach it from this side, I agree. Non-intervention, or not giving any limited resources to anyone, is the most fair approach and then we can evaluate whether it's fair the position in which those people are. Yet I don't know how realistic this is, to withhold all resources from everyone.

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33. jimkle+hH2[view] [source] [discussion] 2025-01-23 09:39:44
>>golerg+Fy1
Have you lived in a country where the citizens believe that the government is overall apathetic to their situations? It often doesn't create a utopia, but rather a lot of cynicism and reliance on family support networks. I'm an American currently in East Africa and I imagine many if not most people here would say the government doesn't care about them and does very little for them. So what ends up happening is that since there is little government/social welfare programs, people rely on family welfare. And well, if you don't have a rich family, your life can be really really really hard, if you even survive.

Your family doesn't have money? No food. No service at the emergency room. Heck, even no water.

I think there's a balance and that people who want more apathy and inaction may not realize what it's like when that's actually the case.

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34. jimkle+wH2[view] [source] [discussion] 2025-01-23 09:42:15
>>_heimd+A02
Government is just a collection of people, collection of unknown neighbors. Action can lead to unintended consequences, but so can inaction. Someone is bleeding on the street, do you help? If you help, you might get HIV, if they were attacked the attacker might come after you, the person might even attack you. If you don't help, they might bleed out on the street, they might have permanent damage, or something else.

Do you act or do you not act?

Both have unintended, often unpredictable consequences.

replies(1): >>_heimd+Fh3
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35. jimkle+WJ2[view] [source] [discussion] 2025-01-23 10:12:06
>>currym+8x1
ah ok, i appreciate the clarification and am grateful to hear that. I think I've worried that the EA movement often has an obsession with optimization, which can lead to getting the absolute best perfect solution and become really dehumanized in the process.

But as I said, I'm glad to hear that unconditional cash is gaining traction with those folks, as I think it not only gives someone financial resources but also trust.

> And this trust — another resource it’s difficult to measure — is the aspect of gifts that many have said they value most.

The above is an excerpt from MacKenzie Scott's essay, "No Dollar Signs This Time." [0] I really appreciate the approach she is taking, which seems to be especially embracing the uncertainty of it all and trusting people to do what they believe is best.

[0]: https://yieldgiving.com/essays/no-dollar-signs-this-time

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36. jimkle+PK2[view] [source] [discussion] 2025-01-23 10:24:01
>>_heimd+mZ1
I personally don't like the word "fair" very much because of how context-dependent it is. It's often used in "that's unfair" by a person who feels attacked or aggrieved in some way. It seems to have such a subjective quality to it, and yet can be claimed to be objective.

It actually reminds me of an essay I wrote years ago called "The Subjective Adjective" [0] (wow, I wrote it 10 years ago!) The premise is that we take how we subjectively feel and then transform it into an objective statement on reality, overlooking how subjective it really is.

Anyways, I agree some of these conversations seem to devolve into definitional debates that may not get at the real point.

I think I also replied to a different comment thinking it was you—identity and conversational continuation, an aspect of context so often hidden/lacking on HN.

In general, I agree with you that a policy could be equal/fair as in giving everyone an equal amount of X, and that the unfair part is where people are in life. I actually liked the idea of charging a flat tax across the US and then having people voluntarily pay the tax for those who couldn't pay it, because I agree, I would see the tax as fair but the wealth inequality as unfair and one way to rectify that is for people to voluntarily rebalance the wealth. But yeah, I'm sure tons of people would see that as unfair.

I really don't know lol.

[0]: https://www.jimkleiber.com/the-subjective-adjective/

replies(1): >>_heimd+Of3
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37. mlazos+5W2[view] [source] [discussion] 2025-01-23 12:28:39
>>cma+rO1
Going bankrupt isn’t just some chill thing, your credit score will get completely destroyed. Some people will definitely continue to pay.
replies(2): >>datavi+dN7 >>indymi+Gnd
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38. neilc+6Z2[view] [source] [discussion] 2025-01-23 12:54:55
>>bdangu+mM1
Basically all college-bound 18-year olds understand what debt is — you’re infantilizing them to a ridiculous degree if you think otherwise. A lot of them choose to proceed with college due to career optimism and following the herd, not because “debt” is some magical concept that they don’t understand.
replies(1): >>bdangu+Rh3
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39. _heimd+Of3[view] [source] [discussion] 2025-01-23 14:46:35
>>jimkle+PK2
If we're considering tax changed, I'd love to see a government run like a kickstarter. Government departments' role should be designing programs, estimate costs, and pitching the program to the public.

For taxes, the government provides estimates or recommendations on what a household would owe but its voluntary. You throe your money into programs that you want to see funded.

It could go horribly wrong, but so can centralized planning. At least this way the people are responsible for it either way.

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40. _heimd+Fh3[view] [source] [discussion] 2025-01-23 14:57:44
>>jimkle+wH2
> Government is just a collection of people, collection of unknown neighbors.

I don't think that's an accurate comparison. None of the politicians in Washington are my neighbors, the closes one lives about 300 miles away but he is never actually home. Those politicians have an extreme amount of control over my life, well beyond what seems reasonable given how disconnected we are.

> Do you act or do you not act?

That varies a lot, but context is everything. If I see someone bleeding out, yes I would help. I generally have basic first aid on me including a tourniquet and chest seals. If I have open cuts on my hands and no gloves I'd have to consider the risk of infection, but if someone is likely to die I think I would take the risk (you never know until you're in the situation though).

If someone is attacked on the street, again yes I'd likely act. Context still matters, if I'm 30 feet away and the person has a gun I'd be of no use unless I'm also armed, and even then I'd have to draw before they saw me. If someone is getting beat up, mugged, even stabbed, sure I'd jump in. I think of have a really hard time living with the knowledge that I watched someone get attacked or murdered and did nothing.

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41. bdangu+Rh3[view] [source] [discussion] 2025-01-23 14:58:41
>>neilc+6Z2
Basically all college-bound 18-year olds understand what debt is

not to sound snarky but seldom do I read here something more wrong... if they did they would NEVER take on the kind of debt they are taking on in droves to get that paper. "debt" is one thing, you probably understand "debt" when you are a kid... understanding loans however - is an entirely different thing from general concept of "debt"

replies(1): >>neilc+tR3
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42. freeja+xA3[view] [source] [discussion] 2025-01-23 17:13:41
>>ajmurm+8j
People complain about effective altruism because they just talk about mosquito nets instead of anything like this.

Also, who is the person that "screwed up big"? I'm guessing you mean SBF but my view is that MacAskill is an outright shuckster.

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43. aylmao+2C3[view] [source] [discussion] 2025-01-23 17:23:27
>>_uxvx+kR1
The world keeps showing the USA things can be better, but some of you really are entrenched deep in American hubris
replies(1): >>vtashk+c04
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44. aylmao+1D3[view] [source] [discussion] 2025-01-23 17:30:36
>>itsokt+NI1
Source? If you're curious cost as it relates to supply and demand of higher education, here's one [1].

[1] https://www.stern.nyu.edu/sites/default/files/assets/documen...

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45. qwytw+YL3[view] [source] [discussion] 2025-01-23 18:28:16
>>bun_at+4S
Isn't most debt incurred by graduate students, especially those in med or law schools? Surely 4 years of higher education should be enough for someone to figure out basic maths?
replies(2): >>steven+og4 >>datavi+qN7
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46. neilc+tR3[view] [source] [discussion] 2025-01-23 18:57:33
>>bdangu+Rh3
I suppose we’ll have to agree to disagree. I know lots of liberal arts majors who still have a lot of student loan debt in their late 20s and 30s. They knew what they were doing when they enrolled in college and chose their major, it wasn’t like cost of tuition or what an “interest rate” is was somehow obscured from them or too difficult for them to comprehend. In some cases they regret the choices they made earlier but that’s a different matter, those choices were not made in ignorance of the basic situation they were entering into.
replies(1): >>bdangu+LD4
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47. vtashk+c04[view] [source] [discussion] 2025-01-23 19:53:05
>>aylmao+2C3
I am actually European :)
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48. steven+og4[view] [source] [discussion] 2025-01-23 21:48:05
>>qwytw+YL3
Maybe, maybe not? This is hard to find via search, possibly due to graduate being inside the search term undergraduate. :)

This shows the average total owed by graduate students is much higher than undergraduates, about 3x. https://www.usatoday.com/money/blueprint/student-loans/avera... So just spitballing here, if there are more than 3x undergraduates than graduate students, and the same number have loans, the undergraduate debt is higher overall.

But then there's this showing the median being closer to only 2x different https://www.pewresearch.org/short-reads/2024/09/18/facts-abo...

The long rise of for profit undergraduate institutions until quite recently says it was extremely profitable to get students into debt for questionable education value, it's almost like payday loan shops, just preying on different segment of population.

https://www.highereducationinquirer.org/2022/01/how-universi...

I don't think traditional public or private four year universities are blameless, either, raising tuition to match this endlessly rising loans guaranteed by Federal government with spiraling administrative system costs.

Even though the cost is high I thought in the USA the number of med school students is restricted to a very small number.

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49. bdangu+LD4[view] [source] [discussion] 2025-01-24 01:56:56
>>neilc+tR3
We definitely agree to disagree… I am trying to understand your point of view but failing - if they understood the loan and still took on it does that mean that they are just being irrational? or stupid (I don’t mean to sound mean here but lacking a more PC word here…)?
replies(1): >>neilc+oW9
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50. Eleven+TK5[view] [source] [discussion] 2025-01-24 15:40:25
>>cma+rO1
> I don't like it, but how would you prevent everyone from getting expensive schooling and then immediately declaring bankruptcy?

You don't! If the government is backing the loan, as is true in almost all cases, you eagerly take the write-off on the public purse in the knowledge that you've just gained an enthusiastic taxpayer who can open a new business or take a flyer on a new career, instead of a debt slave that is terrified to do anything but brownnose their way up the ladder at their dead-end callcenter job that will disappear the minute someone figures out it can be done in Bangladesh or by AI for cents on the dollar.

Sure, it would be better and more efficient to do this directly by nationalizing the state schools and offering free tuition or something, but we have to work with what we have.

51. datavi+HM7[view] [source] 2025-01-25 14:53:45
>>visarg+(OP)
Simple ten years of tax deductions for paid student loans. Fixed it.
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52. datavi+dN7[view] [source] [discussion] 2025-01-25 14:58:21
>>mlazos+5W2
In America so many banks are hungry to loan money. You can build up your credit and save. I recovered from bankruptcy before the ink was dry. I was driving a new car and living in a new house in short order. It is now long gone from my credit file. Don't ever talk someone out of bankruptcy if they qualify for it.

If you own a home you can exclude it from the bankruptcy. You can also include it and continue to pay the payments and the contract must be honored!

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53. datavi+qN7[view] [source] [discussion] 2025-01-25 15:01:43
>>qwytw+YL3
My mom has a master's degree and couldn't plan her finances or retirement if her life depended on it.
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54. neilc+oW9[view] [source] [discussion] 2025-01-26 14:21:00
>>bdangu+LD4
They absolutely understood the terms of the loan. I think they do it anyway because: (1) everyone else is doing it and they don’t have a good alternative (2) career optimism. If you end up becoming a lawyer/consultant/accountant or otherwise have a good corporate job, in the medium-term your student loan debt doesn’t really have a significant impact on your life.

It’s really only a problem if you (1) choose a private college and don’t stay in-state, (2) get a degree which doesn’t have a lot of practical value, and (3) then want to pursue a low-paying field or get a not-useful graduate degree. For example, a friend of mine did her undergrad in art history, master’s in museum studies, and works for a non-profit. She’s not rich but she’s able to survive reasonably comfortably. She’s not dumb or financially illiterate, and she knew what she was getting in for.

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55. indymi+gLc[view] [source] [discussion] 2025-01-27 13:45:20
>>cma+rO1
> how would you prevent everyone from getting expensive schooling and then immediately declaring bankruptcy

If the expensive schooling works, then the person should be able to get a nice, well paying job and pay off the loan over the next 20 years. Many of the differal programs (i.e. "putting the loan on hold") programs and policies would prevent this. It's when the clock runs out, and the student can't get the high-paying job that we have issues...

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56. indymi+Gnd[view] [source] [discussion] 2025-01-27 17:27:26
>>mlazos+5W2
Bankruptcies are not a cure all. They are a way to force creditors to work with debtors to either get the debt to where it can be paid back, or git rid of debts the debtor will ever be able to pay. The idea is to prevent usury or debt servitude. It also has the effect of introducing a risk to a loan where the lender can lose their money, and has to consider if it is a good idea to write the loan. Student loans are risky, so the government guarantees them, but even so the default rate is high. Perhaps our focus should be on figuring out why so many loans default and working on bringing expenses and outcomes to an alignment where people don't default.
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