On average, skipping college and investing tuition costs nets a higher return

Re:On average, skipping college and investing tuition costs ... by averagewall on Sunday June 04, 2017 @09:56PM (#14484838)

Why have special rules for student loans at all? If a degree is not very important anymore then it should be just free choice. Banks will step in to provide private loans on whatever terms they feel like. They'll be bankruptable. The banks can make their own judgements about the borrower's ability to repay it - eg. higher interest rates for useless degrees or low grades.

I thought the whole business of government helping with student loans is to enable poor people to get a degree when that was vital to getting rich. But that's not really needed anymore. You can often make more money with a trade certificate than a degree.

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Re:On average, skipping college and investing tuition costs ... by prostoalex on Monday June 05, 2017 @02:31AM (#14485645)

> Banks will step in to provide private loans on whatever terms they feel like. They'll be bankruptable. The banks can make their own judgements about the borrower's ability to repay it

Banking industry does not have a concept of a college loan. A loan is either secured (mortgage, auto, HELOC) or unsecured (personal, credit card). Without government participation all college loans are treated as unsecured, which means that everybody will get roughly the same offer as they do today on personal loans. High interest rate, payments must start immediately, bad credit requires a co-signer (time to talk to Mom and Dad).

Banking sector interest in unsecured private loans to people with bad credit (which describes most 18-year-olds) is so close to zero that LendingClub pretty much owns the sector.

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Re:On average, skipping college and investing tuition costs ... by bluGill on Monday June 05, 2017 @11:18AM (#14488196)

I think the degree should be security for the loan. You can discharge your degree in bankruptcy, but you also lose the degree. Your resume legally has to show a blank spot that you cannot explain as anything other than wasting your time. (or possibly working part time if you had a job).

Want a new degree, your credits won't transfer so you start over as a freshman. (if you can get in - school is competitive and the bankruptcy is sitting there on your record)

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Re:On average, skipping college and investing tuition costs ... by prostoalex on Monday June 05, 2017 @12:56PM (#14489131)

A very significant portion of college entrants do not receive a degree.

https://nces.ed.gov/fastfacts/display.asp?id=40

"The 6-year graduation rate was 58 percent at public institutions, 65 percent at private nonprofit institutions, and 27 percent at private for-profit institutions."

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