Boomers cant afford they houses. boo hoo

[xr4ticlone]

No...but I don't like slinking off to get away from people who I didn't pay.
And I have enough morals that I'd be ashamed to see them.

I loaned a former roommate of mine from 18 years ago $1500 about 3 years ago...pretty much knowing that I'd never see it back. His car broke down, his dad was dying, and he was out of work.

Could have cared less....until his wife & him go on vacation (don't worry, I'm sure they still can't afford it) to Europe & post FB pics of their trip.

I hope for their sake they never need anything from me going forward. I didn't care about the $1500. But the idea that you took it and then went & blew $10k on going to Europe before paying me back? That's money I worked for...money that I could use to help my kids...money that could have gone to someone who really needed it. If they paid me tomorrow I'd happily give it to charity. It's not the money at this point...it's the principle of it.

Pay your ******* bills....follow through on your obligations.

I work out of my house and that became an issue with one of my larger customers. "Do you know he works out of his house?" Like that made me a crook or something. "Where does he keep his inventory?" (I don't keep a lot of inventory...I just know a lot of people and where to find things at a good price.)

The owners in this case have bankrupted at least 3 companies that I know of in the past.
When my guy told me about their concerns over me working out of my house I told him...

"I work out of my house because I can. No one's looking for me. I don't worry that some guy I F'd or didn't pay is going to be waiting for me outside one morning to kick my ass. Because that's not how I do business, and I don't owe anyone jack ****. Which is exactly why they've got unlisted numbers and don't want anyone there knowing their home addresses."

 

[CascadeClone]

The moral hazard of student loan forgiveness is rankly unjust, to me.

Oh, I 200% agree, but politicians love to buy votes.

I think banks / lenders need to start providing an "ROI" to kids on their student loan investment. If your degree won't pay you more than say, walmart, then you should know it's a bad investment. You can still do it, and pay for it, in exchange for the (hopeful) increase in job satisfaction. But just understand how it works. I think a lot of kids don't get that.

 

[Sigmapolis]

Oh, I 200% agree, but politicians love to buy votes.

I think banks / lenders need to start providing an "ROI" to kids on their student loan investment. If your degree won't pay you more than say, walmart, then you should know it's a bad investment. You can still do it, and pay for it, in exchange for the (hopeful) increase in job satisfaction. But just understand how it works. I think a lot of kids don't get that.

I have always thought something like this would help a lot...

APPLICATION: 2.8 high school GPA, 950 SAT, wants to major in interpretative dance at Westfield State... yeah, you get something like a 30% interest rate

APPLICATION: 3.9 high school GPA, 1400 SAT, wants to major in electrical engineering at the University of Michigan... yup, how about a nice 2% rate for you

The fact we do not apply basic underwriting principles to student loans is silly.

 

[ianoconnor]

I have always thought something like this would help a lot...

APPLICATION: 2.8 high school GPA, 950 SAT, wants to major in interpretative dance at Westfield State... yeah, you get something like a 30% interest rate

APPLICATION: 3.9 high school GPA, 1400 SAT, wants to major in electrical engineering at the University of Michigan... yup, how about a nice 2% rate for you

The fact we do not apply basic underwriting principles to student loans is silly.

Not sure that'd help anyone other than the banks. If someone is taking loans to major in interpretive dance, they are probably dumb enough to take a 30% loan.

 

[SpokaneCY]

I have always thought something like this would help a lot...

APPLICATION: 2.8 high school GPA, 950 SAT, wants to major in interpretative dance at Westfield State... yeah, you get something like a 30% interest rate

APPLICATION: 3.9 high school GPA, 1400 SAT, wants to major in electrical engineering at the University of Michigan... yup, how about a nice 2% rate for you

The fact we do not apply basic underwriting principles to student loans is silly.

The crappy thing is both students would think it's still a great idea...

 

[Sigmapolis]

Not sure that'd help anyone other than the banks. If someone is taking loans to major in interpretive dance, they are probably dumb enough to take a 30% loan.

Then the bank is dumb enough to never get its money back, too.

Banks that have too many nonperforming loans are no longer banks eventually.

"DENIED" is an acceptable answer, as well.

 

[CascadeClone]

The fact we do not apply basic underwriting principles to student loans is silly.

That's because there is "no risk" to the bank, so they don't care about ability to pay back. Just assume it will happen eventually, and meanwhile making 7% interest.

Same as the point I made in the other thread about mortgages - if the approving bank has no skin in the game, they aren't really concerned with ability of borrower to repay. Someone else's problem...

 

[ArgentCy]

I have always thought something like this would help a lot...

APPLICATION: 2.8 high school GPA, 950 SAT, wants to major in interpretative dance at Westfield State... yeah, you get something like a 30% interest rate

APPLICATION: 3.9 high school GPA, 1400 SAT, wants to major in electrical engineering at the University of Michigan... yup, how about a nice 2% rate for you

The fact we do not apply basic underwriting principles to student loans is silly.

It certainly would help those with the former application as well. Even if they don't know it at the time someone BADLY needs to tell them no, that is dumb.

But we can't have this system because it isn't fair. Like a two year old, its not FAIR.

 

[ArgentCy]

That's because there is "no risk" to the bank, so they don't care about ability to pay back. Just assume it will happen eventually, and meanwhile making 7% interest.

Same as the point I made in the other thread about mortgages - if the approving bank has no skin in the game, they aren't really concerned with ability of borrower to repay. Someone else's problem...

Yes, more mal-investment because of government backing programs.

 

[Cyched]

I have always thought something like this would help a lot...

APPLICATION: 2.8 high school GPA, 950 SAT, wants to major in interpretative dance at Westfield State... yeah, you get something like a 30% interest rate

APPLICATION: 3.9 high school GPA, 1400 SAT, wants to major in electrical engineering at the University of Michigan... yup, how about a nice 2% rate for you

The fact we do not apply basic underwriting principles to student loans is silly.

I like the idea, but with loans for college there is going to need to be some nuance that would need to be sorted out.

What happens if I go into college as an engineering major, but decide it's not for me halfway through freshman year? That leaves two options for the bank:

1. Have the ability to rewrite my loan/rate, which seems punitive to kids who are apt to change their minds.

2. Or have to allow the rate to lock in the rate at the time, leaving an opening for students/parents to game the system.

What if I start out at a private college, but then transfer to a state school with lower tuition? Is the loan amount subject to review each year? Does less tuition required affect the interest rate?

What if I start out at a prestigious school like Stanford or MIT, but transfer to ISU to be closer to home? Will that affect my interest rate?

Again, not trying to argue with you; I think it's a fine idea to give students a more realistic perspective of ROI and what their future prospects with a certain area of study are. Just that with the nature of college some of these questions would have to be answered before we turn the banks loose.

 

[BCClone]

Oh, I 200% agree, but politicians love to buy votes.

I think banks / lenders need to start providing an "ROI" to kids on their student loan investment. If your degree won't pay you more than say, walmart, then you should know it's a bad investment. You can still do it, and pay for it, in exchange for the (hopeful) increase in job satisfaction. But just understand how it works. I think a lot of kids don't get that.

I think colleges could do this also...

 

[AlaCyclone]

I have always thought something like this would help a lot...

APPLICATION: 2.8 high school GPA, 950 SAT, wants to major in interpretative dance at Westfield State... yeah, you get something like a 30% interest rate

APPLICATION: 3.9 high school GPA, 1400 SAT, wants to major in electrical engineering at the University of Michigan... yup, how about a nice 2% rate for you

The fact we do not apply basic underwriting principles to student loans is silly.

Now, if it is say someone named Madonna majoring in Dance @ Michigan, it might work out. My guess is that she does not have any lingering student debt.