Re:Defrauded students to receive loan forgiveness
by endisneigh on Friday March 19, 2021 @07:17PM
(#26519150)
> What benefit to society comes from people being shackled with debts for decades that they cannot possibly pay back? We're not talking about someone being able to get any possible debt discharged after a year without making any effort to pay it back, here.
This is true. My point though is based on what you said, should we forgive all debt? I would imagine you would not agree to that, so then we have to discuss the circumstances in which the government should discharge debt.
> Student loans that were basically stolen by fraudulent schools, such that the borrower gained no education they can use to possibly pay the loan back - who benefits from saddling them with that forever? Their only possible options at that point are to labor in poverty forever (the loan's still not getting paid back), or somehow take on more loans to try to get an education again, now slowly paying down two student loans instead of one. Who benefits here?
There's a bit to digest here. There are two considerations:
1. The student didn't gain education.
2. The school took loans they shouldn't have received on behalf of the students.
If we believe (2) is the crime, then we already have mechanisms to punish the school, liquidate them and make those who have been harmed whole again. I don't see why the government needs to be involved more than they already were (in giving the loans).
If we believe (1) is the issue, then this is something that's not unique to for-profit schools. Given it's a subjective sort of thing I imagine it would result in anyone who majored or something they don't feel was useful or receiving an education they didn't feel was "worth it" asking for loan forgiveness. That doesn't seem sustainable either.
Finally, if (2) occurred but the student did receive benefit, should the loan be forgiven? I don't know the answer but it's worth considering.
All of that aside, I agree with what I believe your point to be at the end. We shouldn't be forgiving companies that make bad decisions, either.
This is true. My point though is based on what you said, should we forgive all debt? I would imagine you would not agree to that, so then we have to discuss the circumstances in which the government should discharge debt.
> Student loans that were basically stolen by fraudulent schools, such that the borrower gained no education they can use to possibly pay the loan back - who benefits from saddling them with that forever? Their only possible options at that point are to labor in poverty forever (the loan's still not getting paid back), or somehow take on more loans to try to get an education again, now slowly paying down two student loans instead of one. Who benefits here?
There's a bit to digest here. There are two considerations:
1. The student didn't gain education.
2. The school took loans they shouldn't have received on behalf of the students.
If we believe (2) is the crime, then we already have mechanisms to punish the school, liquidate them and make those who have been harmed whole again. I don't see why the government needs to be involved more than they already were (in giving the loans).
If we believe (1) is the issue, then this is something that's not unique to for-profit schools. Given it's a subjective sort of thing I imagine it would result in anyone who majored or something they don't feel was useful or receiving an education they didn't feel was "worth it" asking for loan forgiveness. That doesn't seem sustainable either.
Finally, if (2) occurred but the student did receive benefit, should the loan be forgiven? I don't know the answer but it's worth considering.
All of that aside, I agree with what I believe your point to be at the end. We shouldn't be forgiving companies that make bad decisions, either.