<p>This is an interesting take on reframing the concept of student debt. A home mortgage is secured by the home, of course. Student loans arent “secured.”</p>
<p>“If student loan debt were rebranded as this “education mortgage,” perhaps fewer students and co-signers would be willing to take out tens of thousands of dollars in debt on what is increasingly becoming a risky investment: a college education.” </p>
<p>In a literal translation, “mortgage” is a combination of the French words mort (death), and gage (pledge). A mortgage is a death pledge. The term’s common use derives from Sir William Blackstone’s Commentaries on the Laws of England, which describes English common law at that time.”</p>
<p>“The term “education mortgage” more accurately describes the life of the debt, especially since student loan debt is only rarely discharged in bankruptcy proceedings.”</p>
<p>Playing symantics games seems to have limited value to me. There will continue to be many who still believe do everything to pay for dream U no matter the cost. Can’t see it would change anything.</p>
<p>^True. Plenty of people over-reached and cashed-out on their houses, too, even though we call house debt a ‘mortgage.’ </p>
<p>Maybe we should just cut to the chase and call both types of debt (student and home) a ‘death pledge.’ Now that might get people to think before they leap. ;)</p>
<p>Student loans allow students who otherwise would not be able to afford college to do so. Used responsibly, they can be a true blessing. Not all student loan debt is a bad thing.</p>
<p>Everything used responsibly work. Even poison. Curare anyone?</p>
<p>Problem is that the incentives for some things are difficult to control, so making the thing available is an invitation to danger. Since money is fungible, do I take this loan now and use part of the money to help me afford an iPhone 5 (as I see some people doing)? Do I take the money to go study in NY? More importantly, if schools know that students can get X thousand dollars no question asked, do they have incentives to rise prices?</p>
<p>A mortgage is secured by a resalable asset. Educational loans are personal loans. When the money is spent, it’s spent. It might qualify the borrower to earn more money later, but there’s nothing that can be resold to discharge the debt.</p>
<p>I prefer to think of an education as something that does not lose value, does not fall apart after a few years, and cannot be repossessed. I think it is an excellent investment. Like any investment, though, people invest within their means.</p>
<p>My d told me of a student in her class who is seriously contemplating 200K worth of undergrad debt, she was hesitant until her MOTHER told her debt isn’t the worst thing in the world. How can 18 y/o’s be smarter than adults? Just goes to show you sometimes its the parents who need their heads examined.</p>