Americans naturally want to find good jobs; and they believe (with reason) that their most reliable asset is a college or trade-school degree. We could be helping nearly all of them with free or low-cost colleges and vocational schools. But that would mean higher taxes, and less revenue for educational profiteers. Professors Louise Seamster and…
Student loan forgiveness – at least in part – is a real possibility under President Biden. However, this is just half the battle. We must also stop making new loans – otherwise, all the student debts will eventually re-appear. We can start by denying federal loans for careers that do not reliably produce high earnings….
Over two million persons over age 65 still carry student debt – either for their children, or for themselves. The total amount owed is approximately $70 billion—and in 2019, nearly 40 percent of older borrowers were in default. Over 114,000 seniors have had Social Security benefits offset because of unpaid student loans – even when…
The recent debates over Covid policy have often referred to “healthcare paternalism.” This gets my attention. Paternalism is extremely relevant to the problems of debt. Should we let young people who are ignorant of finance take out student loans? Should we let anyone with a modest income have an unsecured credit card? Should we ban…
More than 6,000 debt collection firms operate in the United States, collecting billions of dollars each year. These collectors flood small-claims and other state courts with lawsuits seeking repayment. Millions of collection lawsuits are filed each year in state and local courts that have effectively become collectors’ courts. Debt collection lawyers can file hundreds of…
Here is a wonderful article from Rachel Cohen of The Intercept. It highlights recent efforts to cancel carceral debt – such as probation fees, bail bond fees, and charges for daily incarceration. Carceral debt came to light following Michael Brown’s death in Ferguson, Missouri in 2015. A legal advocacy group (ArchCity Defenders) reported that Ferguson had issued…
Here is my detailed study of the pros and cons of Single Payer health care. Single Payer Healthcare: Social Insurance vs. Medical Darwinism The first section covers what Single Payer is likely to cost, and which taxes could be increased to pay for it. I make a special effort to be realistic about both savings…
The most painful stories in the student loan pantheon involve borrowers who have actually tried to pay their debts, but wind up owing more than they actually borrowed. If they only make minimum payments, or miss some payments due to financial hardship, the interest charges will eat them alive. The person who “borrowed $40,000, made…
Attached is an article from Pro Publica that shows just how savage things can get in the collection of medical debt. Perceptive historians describe the constant state of war between debtors and creditors. Cases like this one in Kansas have the force and cruelty right out in the open. There is a hopeful note, though….
Income-based repayment has its own problems….. I was depressed to read this account — though not necesssarily surprised. I have looked on income-based repayment as a partial savior for the student loan mess. The program as advertised has two very desirable features:— monthly payments are capped at a percentage of discretionary income;— the debt is…