Student (College) Loans

[GolfSwami]

13 hours ago, saevel25 said:

I mean, you had people who couldn't afford home ownership till they were like 35-40 because they had to pay off student loans to even start working on saving up for a downpayment. 

My realtor told me that the the majority of people looking for new homes over the past 3-4 years has been from people in my age bracket, which would be about the time their student loans were paid off. A lot of my friends and people I know just paid off their student loans the past 5 years. 

Personal debt absolutely has an impact on the economy.

Since the primary cause of bankruptcy in this country is medical costs. The biggest help would be a restructuring of our medical system. 

Most likely true. 

I would say the Great Depression caused bankruptcy not the other way around...

What Caused the Great Depression? | St. Louis Fed

---

This video explores suggested causes such as: the stock market crash, the collapse of world trade, government policies, bank failures and panics, and the collapse of the money supply.

The biggest issue was the mass withdrawal of money from banks, which didn't have the money on hand to cover the withdrawals because the banks were investing the money. 

I did some searching, and didn't find anything saying bankruptcy caused the Great Depression. 

 

There are many interpretations of what caused the Depression. His view is my view. I agree 100% with what he said.  

Slow down in spending --->  marginal businesses fail and defaulted on debt -----> banks less reserves ----> bank runs and failures ------.> Collapsing money supply means further falling nominal incomes which means businesses that had no reason to fail now fail

 

 

Edited September 8, 2022 by GolfSwami

[iacas]

1 hour ago, Elmer said:

If the hospitality industry has a business model which is unsustainable during lean times, then maybe they need a better business model. 

Dude.

Perfectly healthy businesses were legally prevented from operating. It wasn’t “lean times.”

It was a global crisis. A kid taking a loan is not the same at all.

[Amorallity]

Just wanted to jump in and add that mandating a cap on interest rates for student loans, coupled with reforms that foster price competition among colleges, could indeed be a pragmatic approach. Moreover, it might be worth exploring policy changes that encourage colleges to streamline their costs and enhance efficiency, ensuring that the benefits of education are more accessible without burdening students with crippling debt.