Can't say I blame them at this point but the consequences of that are probably going to suck for them.
Paycheck to paycheck and your payment is more than you spend on groceries. And your loan has doubled in size because of interest. And will continue to grow. Meanwhile your credit is garbage and you can't get ahead. Bad credit? Crappy car, needs fixes. Higher interest rate. I'm 41 and trying so hard to get ahead of it.
At the very least cap the interest for people. Or how about no interest. You can't chip away at something that's growing faster than you can swing at it.
Best we can do is crippling debt in a dystopian shitscape to pay off the degree they lied to you about being able to get a good enough job to raise a family because you got that degree, taking on tens, maybe hundreds of thousands of dollars in debt.
I agree with you here. I've always said, if you're putting in work to get an education, the interest on the loan should be zero. Yes, zero.
Over time it means the lender (read: govt) loses money, so what. The increased tax income for an educated employee more than accounts for that. Even if it didn't, what's the downside to an educated workforce for anyone but those in power?
Education should not be a for-profit scheme.
The government has no problem giving away 0% interest loans, often with principal forgiveness, for tens of millions of dollars to fund infrastructure. How is university not a similar investment in the future?
Yeah, in fact it's almost trivial to argue that education in something you're interested in results in better/more efficient infrastructure.
As an example, California uses loops of wire embedded in the asphalt at lights to sense if cars are there, meaning less delays for people because no light is green at an empty direction of an intersection.
Though that's only mildly high tech, some educated electrical engineers had to come up with it, and it makes life better for us all, saving gas, and reduces CO2 for idling cars as well.
Counter argument--having bad credit is also meaningless if you can never afford to purchase something like a house, and you're ok with purchasing used vehicles and renting from smaller landlords and not property management companies.
Credit is a fucking scam to begin with. It's insane what companies like Equifax have gotten away with.
It's a far less bad scam than the previous version of be a white guy that's friends with the local bank.
No. At least under that shit system your information wasn't hacked and you didn't have zombie debt.
Wholeheartedly agree. And then we go around panicking about the authoritarian social credit shit China has. Mfer we've have social credit for decades
In my state all the lenders came to the legislature several years back and make a big push to try and come up with a new type of credit score that was primarily based on driving history. Apparently, driving history is like a way more accurate predictor of your credit worthiness than your financial history. So I guess my point is that they will scrape data anyway then can get it and use it to judge how much you have to pay to access money.
Respectfully, that is apples to oranges. You are unable to function as a regular person in China with bad social credit. Here you can't get loans and sometimes your employer sees.
Comparing the American president to a cartoon character doesn't stop you from being able to fly. You have no idea how deep China's social credit system goes if you think it's at all comparable to just getting higher interest rates.
The consequences already suck. It's damned if you do damned if you don't. At least I can keep (some of) my money this way.
Can't say I blame them at this point but the consequences of that are probably going to suck for them.
Paycheck to paycheck and your payment is more than you spend on groceries. And your loan has doubled in size because of interest. And will continue to grow. Meanwhile your credit is garbage and you can't get ahead. Bad credit? Crappy car, needs fixes. Higher interest rate. I'm 41 and trying so hard to get ahead of it.
At the very least cap the interest for people. Or how about no interest. You can't chip away at something that's growing faster than you can swing at it.
Best we can do is crippling debt in a dystopian shitscape to pay off the degree they lied to you about being able to get a good enough job to raise a family because you got that degree, taking on tens, maybe hundreds of thousands of dollars in debt.
I agree with you here. I've always said, if you're putting in work to get an education, the interest on the loan should be zero. Yes, zero.
Over time it means the lender (read: govt) loses money, so what. The increased tax income for an educated employee more than accounts for that. Even if it didn't, what's the downside to an educated workforce for anyone but those in power?
Education should not be a for-profit scheme.
The government has no problem giving away 0% interest loans, often with principal forgiveness, for tens of millions of dollars to fund infrastructure. How is university not a similar investment in the future?
Yeah, in fact it's almost trivial to argue that education in something you're interested in results in better/more efficient infrastructure.
As an example, California uses loops of wire embedded in the asphalt at lights to sense if cars are there, meaning less delays for people because no light is green at an empty direction of an intersection.
Though that's only mildly high tech, some educated electrical engineers had to come up with it, and it makes life better for us all, saving gas, and reduces CO2 for idling cars as well.
Counter argument--having bad credit is also meaningless if you can never afford to purchase something like a house, and you're ok with purchasing used vehicles and renting from smaller landlords and not property management companies.
Credit is a fucking scam to begin with. It's insane what companies like Equifax have gotten away with.
It's a far less bad scam than the previous version of be a white guy that's friends with the local bank.
No. At least under that shit system your information wasn't hacked and you didn't have zombie debt.
Wholeheartedly agree. And then we go around panicking about the authoritarian social credit shit China has. Mfer we've have social credit for decades
In my state all the lenders came to the legislature several years back and make a big push to try and come up with a new type of credit score that was primarily based on driving history. Apparently, driving history is like a way more accurate predictor of your credit worthiness than your financial history. So I guess my point is that they will scrape data anyway then can get it and use it to judge how much you have to pay to access money.
Respectfully, that is apples to oranges. You are unable to function as a regular person in China with bad social credit. Here you can't get loans and sometimes your employer sees.
Comparing the American president to a cartoon character doesn't stop you from being able to fly. You have no idea how deep China's social credit system goes if you think it's at all comparable to just getting higher interest rates.
The consequences already suck. It's damned if you do damned if you don't. At least I can keep (some of) my money this way.
Definitely encourages people to work under the table.
Part of the reason there's such a push for cashless payment.