Hi School, xx% of your students haven't paid their loans, we're taking $xx,xxx,xxx to cover it. Thank you!
If the schools made a bad loan, they should be held accountable. Especially since they overcharged and failed to deliver outcomes. They ripped a lot of people off.
Garnishing these wages is a regressive, punitive tax that will further slow an economy very near recession territory. But I digress, as if facts mattered. The best we can do is help those who want to leave expat out of the US on whatever visa they can to developed countries and walk away from this debt.
> In particular, the Paycheck Protection Program has so far forgiven $757 billion in loans to private businesses, according to government databases — nearly double what the Biden administration's student-loan forgiveness would have cost.
https://www.cbsnews.com/news/ppp-loan-forgiveness-student-lo...
https://usafacts.org/articles/how-much-does-the-us-spend-on-...
https://www.defensenews.com/congress/2025/12/17/senate-passe...
Forgiveness means paying them back, which means these companies (and the people who got loans) will have learned nothing.
We have financial tools available to this. The only problem is very, very wealthy donors will suffer immensely.
> Garnishing these wages is a regressive, punitive tax that will further slow an economy very near recession territory.
Probably not. It will certainly impact inflation however. Just like the PPP and trump bux.
> In particular, the Paycheck Protection Program has so far forgiven $757 billion in loans to private businesses
The PPP shouldn't have forgiven anyone either. There's a reason we are in the situation we are in. The financial system is not allowed to fail as intended. Instead we prop it up like weekend at the bernies with infinite money printing and forgiveness.
I struggle with this idea people aren't allowed to FAFO anymore. If we do this, why not pay back every loan. That'll certainly bolster the economy!
The debt doesn’t matter, it should’ve never been issued, forgiving it won’t create inflation (they’re already not paying the debt), we’re just collectively cruel and low empathy at a nation state governance level for what’s happening. And the country will deserve the outcome.
For student loan repayment? This is one of the least thought out ideas I've seen on HN in a while, and there have been some doozies.
Let's say you get a $20k personal loan from the bank and you spend it on various things or maybe one big purchase (this is as opposed to an asset backed loan like a mortgage or a normal auto loan where the item could be repossessed or home foreclosed on). You fail to pay back the loan, in what universe does it make any sense for the bank to go to the store or stores you purchased from to demand the money back rather than to you, the borrower?
It's a common legal strategy to sue those with deep pockets, regardless of whether they bear the greatest responsibility, in order to get more money. Makes perfect sense because they (the store in your example) actually have the cash. Are you going to sue the gambler or the casino?
Another strategy is aggregation. If you can combine cases into a single case, the payout can be larger for similar effort - but once again this depends on ability to pay.
Going one step further, if the seller is part of an illegal cartel or pyramid scheme, the government might be able to justify seizing its assets, or perhaps collecting punitive damages.
Schools made bad predatory loans. Schools colluded with other schools to raise tuition. And schools made loans to any warm body they could to get them in the door. They did discount some tuition, but that was only enough to justify it as charity and not have to pay taxes. Its all a fraudulent scam.
raybb•1mo ago
https://www.nytimes.com/2025/12/23/business/student-loan-deb...