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Let Them Eat Teslas

Posted by Soulskill on from the om-nom-nom dept.

theodp writes "If you're a bright kid who wants to prepare for the 21st century workforce (PDF) by studying engineering at Purdue, the government will help your parents pay the $100,000 or so tuition tab with a 7.9% interest loan (plus 4% fees) that's likely to be non-dischargeable in bankruptcy and paid back with after-tax money. If, on the other hand, you want to buy a tricked-out $100,000 Model S, Tesla has teamed up with the government, Wells Fargo, and U.S. Bank on what it calls a 'Revolutionary New Finance Product' that enables those who play the game right to avoid paying sales tax, get the government to pick up the first $15,000 (no down payment needed!), and also receive a 2.95% bankruptcy-dischargeable loan for the balance, the payments for which could be tax-deductible. Yep, 'Revolutionary' may be about right!"

10 of 461 comments (clear)

  1. Collateralized vs Non-Collateralized Loans by trout007 · · Score: 5, Informative

    They can always repo your car.

    This is why Education should be funded where the risk is borne by the one making the loan. The repayment terms should be based on a percent of the students income for a fixed number of years.

    These guys are trying to do it.

    https://www.upstart.com/

    --
    I love Jesus, except for his foreign policy.
    1. Re:Collateralized vs Non-Collateralized Loans by SJHillman · · Score: 5, Interesting

      Very good point...
      With a car loan, the car is collateral. If you default, they can take back the car.
      With a student loan, what are they going to do? Cut out sections of your brain?

    2. Re:Collateralized vs Non-Collateralized Loans by Captain+Hook · · Score: 5, Funny

      "This is your brain..." "And this is your brain after defaulting on an education loan..." Cut to shot of egg being smashed under a frying pan.

      --
      These comments are my personal opinions and do not necessarily reflect the opinions of the other voices in my head.
    3. Re:Collateralized vs Non-Collateralized Loans by h4rr4r · · Score: 5, Interesting

      Great, so I get a loan and don't work or part time for the first X years.

      How about we just admit having an educated society is a good thing and we make a university education free to those who qualify.

    4. Re:Collateralized vs Non-Collateralized Loans by hughbar · · Score: 5, Insightful

      Yes naughty students for dying just to avoid their financial obligations. Never heard of such outrageous behaviour.

      --
      On y va, qui mal y pense!
    5. Re:Collateralized vs Non-Collateralized Loans by thoth · · Score: 5, Insightful

      Here's the thing, the free market isn't some magic fairy that shits pots of gold and sprinkles rainbow dust everywhere.

      If you want to have education with a profit motive, then the RISK should be borne by universities. Getting government guaranteed loans with bankruptcy exemptions so it can be handed over to a for-PROFIT institution is total bullshit. In this situation, the university is motivated to crank up tuition with no ceiling. When the RISK is borne by universities, they'll price their damn "product" better, screen students better, perhaps even innovate (e.g. charge different amounts for degrees based on perceived ability to earn income).

      Of course, that would lead to large stratification of education, with the wealthy drawn like a magnet to the best schools, the poor having to do with leftovers, etc.

      And I would argue that outcome is unacceptable for a 21st century superpower, due to the fact that the free market outcome would not adequately distribute available resources, so education should be exempted or removed and handled by "the public" whereby the society itself benefits.

    6. Re:Collateralized vs Non-Collateralized Loans by Anonymous Coward · · Score: 5, Interesting

      Let the market fund the schools

      "The market" won't even train its own employees anymore and you expect them to pick up the tab for education?

      At least it'll be self-correcting. The market will cry and sob to it's capitol servants that they can't find anyone smart enough to hire and the government will say "well gee we better open the floodgates so all these people in socialist countries that bothered to provide education can come in" and the ideology will be drowned out.

    7. Re:Collateralized vs Non-Collateralized Loans by uncqual · · Score: 5, Insightful

      Unfortunately, in the U.S., I fear this would result in a situation where "everyone gets an associates or technical degree", and these programs would end up getting dumbed down so "everyone gets an associates or technical degree" in the interest of "fairness, diversity, and inclusiveness" - just like our K-12 system has. Then, the two year degree would be worth what a HS degree is now - not much.

      I think the U.S. should be seriously considering something more like the German system. Put students on one of a few tracks early (maybe fifth grade?). One of these would be a strong academic track which is intended to end up with at least solid STEM MSc or a PhD in one of the "softer and in less demand" disciplines (such as Ancient History). At the other end of the spectrum would be trade oriented curriculum with students learning skills necessary for basic life (some accounting, enough math to figure out interest, basic understanding of government, basic writing skills) and skills specific to a group of trades and including apprenticeships in HS.

      If you've ever worked with fifth graders, it's pretty obvious which ones will never be on the academic the track or the one just "below" it. If, in spite of being exposed multiple times to it, they haven't figured out how to compute 6.9 × 0.042 or 42.42 ÷ 0.1, they are extremely unlikely to catch up and even survive Algebra 2 a few years later. However, generally students should be given the benefit of the doubt and put into a higher track if they are "on the bubble" and then be aggressively reevaluated every six months to determine if they should be moved to a less academically demanding track. The requirements and expectations of the tracks should not be adjusted to match the students, the students should be placed in the track that match their motivation, intelligence, and interests.

      --
      Why is there an "insightful" mod and why isn't it "-1"? If I wanted insight, I wouldn't be reading /.
  2. Re:LOL! American "priorities"! by MickyTheIdiot · · Score: 5, Insightful

    Our government is being managed for the benefit of corporate elites. It's the simplest and most reasonable explanation for what looks like total idiocy from the outside.

  3. Re:LOL! American "priorities"! by kilfarsnar · · Score: 5, Insightful

    Our entire economy and society is being managed for the benefit of corporate elites. It's the simplest and most reasonable explanation for what looks like total idiocy from the outside.

    FTFY

    --
    "What the American public doesn't know is what makes them the American public." -Ray Zalinsky (Tommy Boy)