Yet another weird SF fan

I'm a mathematician, a libertarian, and a science-fiction fan. Common sense? What's that?

Go to first entry



<< current
E-mail address:
jhertzli AT ix DOT netcom DOT com

My Earthlink/Netcom Site

My Tweets

My other blogs
Small Sample Watch
XBM Graphics

The Former Four Horsemen of the Ablogalypse:
Someone who used to be sane (formerly War)
Someone who used to be serious (formerly Plague)
Rally 'round the President (formerly Famine)
Dr. Yes (formerly Death)

Interesting weblogs:
Back Off Government!
Bad Science
Boing Boing
Debunkers Discussion Forum
Deep Space Bombardment
Depleted Cranium
Dr. Boli’s Celebrated Magazine.
Foreign Dispatches
Good Math, Bad Math
Greenie Watch
The Hand Of Munger
Howard Lovy's NanoBot
Liberty's Torch
The Long View
My sister's blog
Neo Warmonger
Next Big Future
Out of Step Jew
Overcoming Bias
The Passing Parade
Peter Watts Newscrawl
Physics Geek
Pictures of Math
Poor Medical Student
Prolifeguy's take
The Raving Theist
Respectful Insolence
Seriously Science
Slate Star Codex
The Speculist
The Technoptimist
Tools of Renewal
XBM Graphics
Zoe Brain

Other interesting web sites:
Aspies For Freedom
Crank Dot Net
Day By Day
Dihydrogen Monoxide - DHMO Homepage
Jewish Pro-Life Foundation
Libertarians for Life
The Mad Revisionist
Piled Higher and Deeper
Science, Pseudoscience, and Irrationalism
Sustainability of Human Progress

Yet another weird SF fan

Tuesday, October 25, 2011

Student-Loan Bankruptcy and the Signaling Model of Education

Matthew Yglesias points out:

But there’s something special about student loans. Two things, in fact. If you default on your mortgage, the bank gets to take your house. Same thing with an auto loan. And if you can’t pay your credit card bill, you can discharge the debt in bankruptcy. But the lender can’t repossess your degree, and the 2005 bankruptcy bill made it impossible to discharge the debt.
Wait a moment… Why can't a degree be repossessed? According to the signaling model of education (commonly found at EconLog and Overcoming Bias), college degrees are mainly an expensive way to signal a combination of intelligence and reliability. If someone defaults on a student loan, it makes sense for the degree to be revoked as his/her reliability is now in doubt.

In any case, prior to 1998 student loans were bankruptable. The very next year a long-dormant student protest movement came back from from the dead, filling a much-needed gap in political discourse. The non-bankruptable nature of student loans is a recent and regrettable innovation. It's not a traditional feature of capitalism.

My slogan for cutting off the oxygen supply of Occupy Wall Street: Forward to 1998!


Post a Comment

<< Home

My Blogger Profile
eXTReMe Tracker X-treme Tracker

The Atom Feed This page is powered by Blogger.