Heaton Fixes the Student Debt Crisis

How to—and how not to—help solve the college debt problem.

Andrew Heaton | 4.14.2023 12:15 PM

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Americans are swimming in student loan debt to the tune of about $1.6 trillion dollars. On August 24, President Joe Biden granted forgiveness of up to $20,000 to those who make less than $125,000 per year, although the Supreme Court is currently deciding whether that executive order was unconstitutional. The Congressional Budget Office estimates his plan will cost taxpayers $400 billion.

Andrew Heaton has some concerns.

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mad.casual 2 years ago

I'm willing to believe your average ghost isn't driving up student loan costs, but what about all the greedy, cigar-smoking ghosts of dead, greedy, cigar-smoking Dickens characters?

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1. Jefferson's Ghost 2 years ago
  
  Obviously, it would require an advanced degree in "Dickensonian Literature" to determine if this is a factor.
  
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  1. Stuck in California 2 years ago
    
    I doubt schools offer this. For two reasons, the first being that they don't teach anything by dead white men as a matter of ~~religion~~ course anymore, and the second being that someone might realize that Mr. Pecksniff, with his "school" for architecture and his hypocritical, holier than though, attitude is their role model.
    
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    1. Jefferson's Ghost 2 years ago
      
      "I doubt schools offer this."
      
      You may be correct. But they no-doubt offer a "course of study" in modern "anarcho-feminist interpretations of Dickens." Or something...
      
      Log in to Reply
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      2. TheReEncogitationer 2 years ago
        
        Ackchuyally, it's "Anarcha-" not "Anarcho-" hence, "Anarcha-Feminist Interrelations of Dickens" taught by "strong independent women what don't need no man" in State Universities subsidized by men. 🙂
        
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        Jefferson's Ghost 2 years ago
        
        +++
        
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  2. Á àß äẞç ãþÇđ âÞ¢Đæ ǎB€Ðëf ảhf 2 years ago
    
    "Dickensonian Literature Studies", please!
    
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    1. Jefferson's Ghost 2 years ago
      
      LOL. I stand corrected!
      
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Jefferson's Ghost 2 years ago

+++

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sarcasmic 2 years ago

Sorry Heaton, but your jokes are lost on the humorless commentariat.

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1. Marshal 2 years ago
  
  Anyone else notice how some people turn every issue into personal attacks? Anyone notice how it's always people who whine about others making personal attacks who do this?
  
  At least sarc followed his only true principle: never hold yourself or your allies to the standards you use to judge those you hate.
  
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  1. JesseAz 2 years ago
    
    He is only here to discuss ideas.
    
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Sometimes a Great Notion 2 years ago

More Heaton! I'd love to see the return of the weekly show.

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1. TheReEncogitationer 2 years ago
  
  He's like the U.S. answer to John Cleese! Fantastic! 🙂
  
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  1. Libertariantranslator 2 years ago
    
    True Fax!
    
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The Angry Hippopotamus 2 years ago

The problem with allowing student loan debt to be discharged via bankruptcy is all student debt issued since July 1, 2010 is issued by the Department of Education (Health Care and Education Reconciliation Act of 2010).

Discharging the debt doesn’t hurt the “evil, cigar smoking, brandy drinking greedy bankers”. It’s the same taxpayer who has to foot the bill for President Biden’s unconstitutional EO that gets hurt.

Get the government out of the education and student loan business (I can’t find any enumerated power in Article I Section 8) and have the colleges and universities , or bankers, make and underwrite the loans. If students can’t get a job that pays enough to pay back the $100k borrowed for a degree in Underwater Unicorn Studies, the university, college or bank will be on the hook.

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1. gasehe 2 years ago (edited)
  
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2. Leizl 2 years ago
  
  Adding that allowing bankruptcy to include student loans is de facto loan forgiveness. There would be a significant jump in strategic bankruptcy given the perverse incentive of getting out of this huge debt that will dog you for the better part of your adult life.
  
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  1. rbike 2 years ago
    
    Think of the extra work for the lawyers. It will be marvelous.
    
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  2. Libertariantranslator 2 years ago
    
    I'll have to scroll Heaton's subject list again 2 B shoor. But I really did not see Exponential Functions, The Rule of 7s for Interest Rates and Radioactive Decay Problems OR Elementary Differential Equations and Boundary Value Problems. That one is usually listed after Electrical Torture Techniques in Course Schedules.
    
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3. Brandybuck 2 years ago
  
  The solution is both. Get the government OUT of the business of providing or guaranteeing student loans. AND. Allow student debt holders to go bankrupt.
  
  Taxpayer is thus off the hook, and banks have an incentive not to toss out money like beads during Mardi Gras.
  
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  1. The Angry Hippopotamus 2 years ago
    
    The problem almost all “pro discharge student loan debt in bankruptcy” advocates are missing, is since July 1, 2010 ALL student debt has been issued by the federal government and banks did not make and played no role in underwriting or issuing the debt.
    
    Discharging current student loan debt does nothing to banks. They did not make the loans, the federal government did and the taxpayer will indeed be on the hook.
    
    Get the government out the student lending business (making and guaranteeing), have the college and universities make the loans from their endowments, allow banks to properly underwrite and price (i.e. set interest rates) student loans, taking into account how much the student wants to borrow, what major the student intends to study, the pay for graduates with that degree, and maybe I’ll agree on allowing those student loans to be dischargeable in bankruptcy; however, as long as the taxpayer (who played no role in the loan making process) is on the hook for the loan, no.
    
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    1. zCatLady 2 years ago
      
      I like this!
      
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    2. n00bdragon 2 years ago
      
      Even if you waved a magic wand and did all of the above, the government would still be on the hook for the trillions in student loan debt it is currently guaranteeing. You can't take away the guarantees already issued or make them dischargeable in bankruptcy, ever. You can do all this stuff to prevent the problem from growing but the problem as it has already been created can only be solved in one of two ways:
      - Inflate the problem away by printing money
      - Taxpayers gonna pay for it
      
      So far, our government seems to fairly set on taking the first option.
      
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      1. The Angry Hippopotamus 2 years ago
        
        [T]he government would still be on the hook for the trillions in student loan debt it is currently guaranteeing.
        
        It isn't the government on the hook for the trillions in student loan debt it is currently guaranteeing. The government produces nothing and can't be on the hook.
        
        It is the taxpayer who is on the hook and the obvious solution with the student loan debt issued under the current student loan regime is to make the borrowers who freely, without duress, entered into the loan contract pay back what they borrowed in accordance with their loan contract.
        
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      2. Libertariantranslator 2 years ago
        
        Germany did. Then again, few even mention comrade Jack London's solution outlined in "The Unparalelled Invasion"
        
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  2. Sevo 2 years ago
    
    "...Allow student debt holders to go bankrupt..."
    
    Brandyshit ain't real smart.
    
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4. TheReEncogitationer 2 years ago (edited)
  
  I preferred the Major in “Breadstick Administration and Management” that Heaton listed.
  🙂
  
  And I like the way you think! I want a Hippopotamus for Christmas! (* Consensually and if we click, of course.)
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  * Say! “Consensually, and if we click, of course” fits in with the music! A great way to teach Libertarianism to teens! Gad! How do I do it?
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  1. Libertariantranslator 2 years ago
    
    Visit the city jail. Getting busted, shot at, bludgeoned, beaten, badgered and bilked for no rational reason makes youngsters more liable to take judicial notice of the Looter Kleptocracy and LP. Some people hang onto stuff like that... remember it at election time...
    
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DesigNate 2 years ago

Heston is a true treasure and always fun to watch. More of this please.

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1. Overt 2 years ago
  
  I dunno, he's seemed pretty dead to me.
  
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  1. DesigNate 2 years ago
    
    Lol, didn’t even notice the typo.
    
    That’s nearly John levels.
    
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Overt 2 years ago

Man, I've missed Heaton.

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Dirk Honkler 2 years ago

So good. More Heaton.

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conservativeprof 2 years ago

Ridiculous idea. If student debt were just another commercial lending, bankruptcy would be appropriate. Almost all students however would not qualify for borrowing because they are terrible credit risks. Students would need collateral for student debt. Hardly any students have collateral.
Here are some serious proposals for reform of student loans.
1. No more borrowing for older students (perhaps 40+).
2. Borrowed money can only be used for direct education expenses just like education savings accounts.
3. Make universities share risk for student borrowing.

My first two proposals will sharply reduce the amount of student loan debt. Older students can now borrow much more than younger students, most of which supports lifestyle not direct education expenses. Younger people can borrow large amounts (2 times as much) beyond direct education expenses.

Most people have no idea about the amount of abuse in student loans. I doubt that this author understands the amount of abuse. Student loan money can be spent on anything after paying for direct education expenses. Student loan money funds student life styles including transportation, rent, food, travel, entertainment, drugs, alcohol, mortgages, investments, ... The abuse of student loan borrowing is incredible.

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1. Liberty_Belle 2 years ago
  
  I don't know what school you went to, but I never saw a drop of my Financial Aid money; it went straight to the school coffers and I got told about it after the fact.
  
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2. Libertariantranslator 2 years ago
  
  You left out the important stuff: Bully thim Bitches! Cap thim potheads!
  
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3. Lady Dada 2 years ago
  
  My mother got her degree when her kids were old enough to look after themselves. You know, when she was over 40. She took out loans. She went on to get her Masters at Vanderbilt. She paid off her loans.
  
  You can't have an age limit like that. Furthermore, I bet a hefty percentage of professors will tell you their nontraditional students are often their best students.
  
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TJJ2000 2 years ago

Summary.
The curses of "Communism" in Commie-Education is what makes it so terrible. Huh; Funny all these 'educated' students skipped that historical proven factoid.

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Libertariantranslator 2 years ago

BRILLIANT! Entertaining. I sent links to my colleagues and will blog links with a foreign keywords glossary.

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Lemoine de l'Acadie 2 years ago

I completely lost it at the Tired of Being Andrew Heaton melo-montage.

Also, fascinating Heaton-takes, as always.

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Heaton Fixes the Student Debt Crisis

How to—and how not to—help solve the college debt problem.

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