Student loan overhall

[VectraMan]

And how's about this then?

Grieving parents get hit with $200,000 in student loans - Jul. 28, 2014

Sad story, but he co-signed the loan. What did he think that meant?

[Mich the Tester]

Sad story, but he co-signed the loan. What did he think that meant?

Well he probably didn't consider the tiny chance that his daughter would die so young and perhaps thought he was dealing with basically decent people; a mistake when it comes to loan companies.

[VectraMan]

Well he probably didn't consider the tiny chance that his daughter would die so young and perhaps thought he was dealing with basically decent people; a mistake when it comes to loan companies.

So loan companies shouldn't recover the money they're owed? You're basically arguing that a contract entered into voluntarily is worth nothing, and that's a pretty dangerous precedent to set. Nobody would be able to get a loan ever again.

It's like here where we have mortgage products specifically for parents to help out their children. It always seemed to me you'd have to really hate your parents to potentially burden them with your debt like that.

[SueEllen]

So loan companies shouldn't recover the money they're owed? You're basically arguing that a contract entered into voluntarily is worth nothing, and that's a pretty dangerous precedent to set. Nobody would be able to get a loan ever again.

It's like here where we have mortgage products specifically for parents to help out their children. It always seemed to me you'd have to really hate your parents to potentially burden them with your debt like that.

If he goes bankrupt how will the loan company get the money back?

[SueEllen]

According to the article you can't do that, the loan remains.

If the co-signer dies leaving no money then who do they chase for it then?

[VectraMan]

If the co-signer dies leaving no money then who do they chase for it then?

Nobody. What's your point? He's not dead or bankrupt.

[quackhandle]

The student loans company have a 283 column table where they store pretty much every detail about a student's loan.

To fix the obvious performance issues you might expect with that they decided upon that adding a new column and populating it with nulls as they thought that would speed up the oracle database. I tulip you not.

But then again it's the goverment/public sector I should not really be surprised.

qh

[quackhandle]

This thead made me wonder where our "friend" Ed Lester ran off to.

Ah here he is.

qh

[Mich the Tester]

So loan companies shouldn't recover the money they're owed? You're basically arguing that a contract entered into voluntarily is worth nothing, and that's a pretty dangerous precedent to set. Nobody would be able to get a loan ever again.

No, I'm basically challenging the assumption that in a loan the borrower should bear all the risk when something goes wrong; I rather like the Islamic banking principle (yes there are good things in Islam) where lender and borrower share responsibility for the loan and share the benefits from what the loan is used to achieve and the risk that something goes wrong, as opposed to this 'banker takes all' approach we currently have in the west. Even under our system, the bank could have advised this chap that he should insure his daughter's life. Alternatively if he'd taken out a federal loan it would have been cancelled at her death. The current approach is pretty ugly, and we've spent the last 6 years seeing the results of a banking system that places all risk with the borrower (or the taxpayer as the case may be), leaving banks free to make irresponsible loans or loans that are sensitive to changing circumstances and we'll spend the rest of our lives paying for the mess it's created.

[SueEllen]

No, I'm basically challenging the assumption that in a loan the borrower should bear all the risk when something goes wrong; I rather like the Islamic banking principle (yes there are good things in Islam) where lender and borrower share responsibility for the loan and share the benefits from what the loan is used to achieve and the risk that something goes wrong, as opposed to this 'banker takes all' approach we currently have in the west. Even under our system, the bank could have advised this chap that he should insure his daughter's life.

They would have been told to insure each other's life in the UK and it would have been written so that the loan company can help itself to the deceases estate.....