Monica Prasad’s excellent article for the Niskanen Center in 2019 is entitled: “The Trade-Off between Social Insurance and Financialization: Is There a Better Way?” She comments: “The more a government spends on social insurance, the less likely households are to fall into debt. Social insurance includes pensions, health care, family allowances and parental leave, job…
The Nebraska legislature is reviewing a law that would prevent any medical provider from harassing an assault victim over the medical care they receive for their injuries. The state does have a Reparations Fund, but over half the applicants are denied. Survivors of sexual and domestic assault are getting threats of collection. It is repulsive…
ProPublica reporter Marshall Allen has written a great book on how to deal with medical debt. In “Never Pay the First Bill (and Other Ways to Fight the Health Care System and Win)” he likens today’s health care system to a bully – squeezing and taunting the consumer. In a moment of candor, a hospital finance department…
There are several encouraging “extras” in Biden’s August announcement of $10,000 student loan forgiveness. #1. The income-based payment rate for undergraduate loans will drop from 10 percent of discretionary income to just five percent. #2. The Department of Education will raise the amount of income considered non-discretionary. (This is an allowance applied before income-based payments…
When any of us are charged with a crime, we could be faced with a flood of financial charges – even if we are ultimately acquitted. There are charges for processing arrests, for “rent” while in jail, and a potential fee up to $90 a hour for the use of a public defender. Later, there…
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…