Libertarian's Forum
Libertarian Forum to discuss politics and free market economics.
Libertarian's ForumLibertarian's ForumFreedom Forum › Student loans
Page Index Toggle Pages: 1 Send TopicPrint
Normal Topic Student loans (Read 714 times)
freeforall
Libertarian Full Member
***
Offline

Libertarian's Forum

Posts: 70
Joined: Sep 7th, 2014
Student loans
Sep 12th, 2014 at 7:48pm
Print Post  
I'm having an interesting discussion now with a friend who is essentially a communist.  He's saying that only the gov't can provide low interest loans to students from needy families if they want to go to college.  He argues that due to the high rate of default by student borrowers no private company would loan at an acceptable interest rate.  And a complex society needs educated people so only those coming from wealth or from families with parents with good credit rating that can countersign a loan will be able to go to college.

I've come up with some ideas but I don't know if he's buying.  Do you have any?
  

Give me my freedom for as long as I please.  All I ask of living is to have no chains on me. - Blood, Sweat & Tears
Back to top
 
IP Logged
 
Land of Freedom
Libertarian's Forum Administrator
*****
Offline

Libertarian's Forum

Posts: 779
Location: The Land of Freedom
Joined: Apr 11th, 2009
Re: Student loans
Reply #1 - Sep 12th, 2014 at 9:49pm
Print Post  
Who said banks/companies/charities wouldn't offer student loans and who knows what the interest rate would be. Let the market decide. He can offer low interest rate student loans.

Who knows how many should go to college. If offered subsidized loans a young person may chose to go to college and not do well, while had they not offered a subsidized loan the student may have made another choice like military, starting a business, lower cost trade school or work that may have been better for that individual. Stop manipulating the market causing unintended consequences. Also, too many going to college creates an over supply of college grads, causing unemployment and lower wages for all with a degree and a shortage of people entering all other non-college degree careers.

What makes people think college is worth the money spent? Let the market decide without government interference.
  

LibertariansForum.com The LF Administrator.
Back to top
WWW  
IP Logged
 
MaxHen
Libertarians Full Member
***
Offline

Libertarian's Forum

Posts: 158
Joined: Aug 31st, 2014
Re: Student loans
Reply #2 - Sep 12th, 2014 at 10:29pm
Print Post  
Land of Freedom makes some good points. I'd also add that the reason so many people feel like they absolutely NEED to go to college is precisely because they government has poured so much money into the system via student loan programs and the like in the course of a crusade to make sure that everyone has a college degree (which is an incredibly stupid goal, because if everyone has a college degree, then it isn't really a special qualification at all and is effectively worthless).

« Last Edit: Sep 13th, 2014 at 2:43pm by MaxHen »  
Back to top
 
IP Logged
 
Crystallas
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 2119
Location: R[̲̅ə̲̅٨̲̅٥̲̅٦̲̅]ution
Joined: May 4th, 2011
Re: Student loans
Reply #3 - Sep 13th, 2014 at 1:36am
Print Post  
The biggest issue is a false demand for varying levels of education. The system is built upon requiring more than needed from the individual to qualify for work(to curb liabilities and please education lobbies).

If sub-prime student loans weren't issued, then more businesses would be required to train in house and sponsor outsourced training and other bits of education to fill needs.

In other words, less defaults, more free training and education.
  
Back to top
 
IP Logged
 
Alan Jones
Libertarian Freedom Member
*****
Offline

Libertarian's Forum

Posts: 2721
Joined: Apr 19th, 2014
Re: Student loans
Reply #4 - Sep 13th, 2014 at 2:23pm
Print Post  
Don't forget the other reason interest rates would be higher with a private loan than with a government student loan: private debts are easily avoided with bankruptcy.

This is a tactic government uses to gain an advantage over private lenders in general. Make it real easy to stiff private lenders and very difficult to stiff government.

Ask someone coming out of bankruptcy which debts they're left with. The answer will be student loans and back taxes. Every other (unsecured) creditor gets stiffed.
  
Back to top
 
IP Logged
 
Page Index Toggle Pages: 1
Send TopicPrint
 
Libertarian's ForumLibertarian's ForumFreedom Forum › Student loans
Libertarian's Forum

Libertarian's Forum Information Rules, Agreement and Privacy Policy