Many of us have thought, “What would happen if I just pretended this credit card bill didn’t exist? Hmmm…”
Well this is very uncool, via the NYT: “Student Loans Can Suddenly Come Due When Co-Signers Die, a Report Finds.”
Via our pal Matt Levine, Bloomberg has an interview with Thomas Anderson, the author of a new book out called The Value of Debt. During the financial crisis, many households were overleveraged, which later resulted in a focus on de-leveraging and becoming debt-adverse (we got better at paying down our credit cards, for example, though that kind revolving debt is beginning to rise again). As you can see from his response above, Anderson argues that being too debt-averse is a mistake. He argues that it’s all about balance—pay off that high-interest, non tax-deductible debt first, but also hold onto some of your money in case you need it. Do what you need to do to remain secure, essentially.
At Slate, Jessica Grose unpacks the idea of parents taking out subsidized student loans to pay for private preschooling and says that what we should really be thinking about is finding more money to fund public preschools. I still can’t get over the idea of parents taking out loans to send their kids to preschool.