Funny how people bitch about drug pricing being driven by third party subsidies yet don’t see that it’s the same thing in education
FC: Student loan debt surpasses $1.5 TRILLION
- Thread starter mn78psu83
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I’d entertain this If accompanied bY abolition of federal ed subsidies going forward.
I appreciate your input. I think she considered just saying screw it and stop paying because she will never pay it off but being a gov loan, they can just start taking it out of her check. I think the reason she still does the deferral is for the same reason above. She has come to the conclusion it will never be paid off so she really doesnt care what fees it racks up now. I could be wrong but she may have finally just said screw it and only pays a couple hundred a month to keep them from going after her check while stashing the rest to try and make a one time payoff if she can ever get it to happen.
Penn State has 40,000+ students. I get what you're saying. It's entirely unreasonable for you to think everyone can make $15/hour in college and/or take a restaurant job.
I've never heard of a government loan being 28%. She's giving some bad info. Fed loans were 7% when I was taking mine out, and that was just because congress went three years without passing the bill to keep it at 4%. Other than my 3 years, they're 4%. So she has to have a private loan, and she needs to contact Sofi or someone about refinancing it.
I never said I thought that. I don't think working and paying four years at PSU is attainable today. That's one reason why I have a scholarship I funded. Also why I feel 2 and 2 is the best plan.
This is also why a few years ago when I received the letter from my scholarship winner, and she told me she was attending a 5th year even though she graduated, I nearly fell out of my chair with disgust.
LdN
Everybody should be able to repay their college loans as long as they entered into the transaction knowing that they would wind up with a career/salary that would be more than adequate to cover the loan payments.
About 12 years ago I hired an entry level marketing communications major that we paid about $35,000. After approximately 6 months on the job I heard her moaning about her finances including student debt. She went on to explain that she owed nearly $100,000 on those loans. I asked her why she went to an expensive private college if she couldn't afford it. She told me because that's where her friends went and that I sounded like her dad.
I certainly agree that college costs are too high and that the government has only made matter worse. But there is no "government" to forgive your debt any more than there is a "government" that can give you free health care. Nothing is free. What you're asking is for other people to pay for it.
Think of what you just posted. We need to answer WHY we have a problem that we didn't have 40 years ago.
Judge,
Don't other countries limit who can attend AND direct them toward their major? We had friends in Ireland a few years back and the final test scores their kids took determined in large part both college and major.
This country is doomed to fail. You can't constantly sell out young people to satisfy the old. The govt. has created a giant wealth transfer in education while also allowing corporations to cheaply outsource jobs to India, LatAm and Poland while they import cheap Indian H1Bs to fill jobs that Americans apparently don't have skill for. Overspend on a house, foreclose and you are free in 7 years. Open a LLC business, run it up debt then bk and it gets wiped out...free to repeat. Take out $100k in loans at 17 or 18 and tied to it for life. How does country live with itself? Universities enjoy non profit status yet sit on billions in endowments that they hoard like meisers. If 10 years after college and your 1040 averages less than your debt then discharge it. Another natural control, if you don't pay your debt then you don't have a verified diploma. Most good jobs do an education check. Mine did and I had to get transcripts. Of course, the politicians who are in bed with Sallie Mae and big education are the real predators here. They want nothing to change.. until it collapses.
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anon_xdc8rmuek44eq
Guest
Was thinking more Denmark and Sweden, but you're on a roll....
I also think Brexit happened because most of the good folks in the UK really had no idea what it was or the impact it would have (as follow up polls have suggested). It was a very close vote that would likely go the other way if another vote was held tomorrow.
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Yeah, what age group are the folks in congress running things the past 30 years while this happened. Hmmmmm
They're politicians, aka, failed lawyers. Not every single one, but the vast majority.
Lets fix government f'ups with more government. What could go wrong?
Yeah, Denmark, Sweden. Why not include Norway. Hmm... what do these countries have in common.
Yes, you think Brexit happened because people were stupid.
I expected that.
LdN
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anon_xdc8rmuek44eq
Guest
I'm trying to figure out where you're getting this "economy wrecking" argument.
Total Student Loan debt is $1.5 Trillion. The U.S. GDP is around $20 Trillion per year. Let's assume that (a) 50% of the student debt is held by "high risk" individuals and (b) that they default at a rate of 33% per year. That equates to only $250 Billion dollars of default per year (1.25% of the annual GDP).
You should have taken an Economics course or two while attending this alleged University with a prestigious alumni base.
It’s another ponzi scheme! The only people getting rich are the universities and their staff! The students aren’t and the government is on the hook. A another reaction and result of the recession as the Obama administration just kicked the can down the road..... The large schools are nothing more than big bureaucratic government agencies. Wouldn’t it be something if they went public and sold shares????
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anon_xdc8rmuek44eq
Guest
Plenty of evidence to suggest many voters were ill informed and/or unaware of what they were voting for. But you knew that.
Judge
You are usually so logical. If a high school student decides to go to a small private expensive [$130,000] liberal arts college and gets a degree that leads to a job paying $45,000 and ends up with a $1,200 mth loan payment who is to blame?
The student who could easily see what jobs pay
The college for jacking up tuition beyond reasonableness or
Society for not making college free.
I'll pick A and B but never C. I suspect there aren't many graduates in the STEM fields right now that won't be able to pay their bills.
I wonder how many schools have $1 billion plus in their endowment while lending students who can't afford it money?
I'm trying to figure out where you're getting this "economy wrecking" argument.
Total Student Loan debt is $1.5 Trillion. The U.S. GDP is around $20 Trillion per year. Let's assume that (a) 50% of the student debt is held by "high risk" individuals and (b) that they default at a rate of 33% per year. That equates to only $250 Billion dollars of default per year (1.25% of the annual GDP).
You should have taken an Economics course or two while attending this alleged University with a prestigious alumni base.
hmmm..... $250 billion in defaults, sounds familiar, can you say subprime/financial crisis?
and take it a step further, schools with massive endowments can offer their own student loans. Maybe they'll wise up and not encourage students to run up $1000/month loans for a social science degree.
Part of our move to socialism. Much easier to forgive if the govt. owns it all. You have heard the arguments in this thread.
I'm trying to figure out where you're getting this "economy wrecking" argument.
Total Student Loan debt is $1.5 Trillion. The U.S. GDP is around $20 Trillion per year. Let's assume that (a) 50% of the student debt is held by "high risk" individuals and (b) that they default at a rate of 33% per year. That equates to only $250 Billion dollars of default per year (1.25% of the annual GDP).
You should have taken an Economics course or two while attending this alleged University with a prestigious alumni base.
Peetz, at 33% default, bondholders would run for hills. You would have to revamp entire education funding process. It becomes confidence game with system which would roil the world. It is not just pure $ numbers.
Not sure the age of the rocket scientists in Wash are completely to blame. However, easily available $ for loans has led to skyrocketing tuitions. The simple truth is the balance of supply and demand isn't good.
A loan for an engineer, or a programmer = easily paid back
A loan for an art history major = not easily paid back.
Are we ready to tell kids what they have to major in to qualify for a loan?
My answer to your last question is yes.
Loans should be capped based on a major, there should be credit checks/co-signers, and student loans should be discharge-able in bankruptcy.
Tuition should also be based on your major as well.
IMO that’s a terrible idea that will lead to the very same problems we have now. STEMs would be an ungodly price that would put such careers out of the question for anyone other than elites.
Many schools are already doing it including Penn state
Per Academic Year Full-Time*
Per Semester Part-Time
Per
Credit
Pennsylvania Residents:
Undergraduate:
Lower Division including Associate:
Freshmen & Sophomore 17,416 8,708 726
Upper Division: (a)
Junior & Senior:
Business, EMS, Science, IST, Engineering: (b) 20,780 10,390 866
Nursing 22,484 11,242 937
All Other Programs 18,828 9,414 785
Just make sure you’re on the right side of the “reaction”
I know. I was purposely trying to “dramatize” the unimportance of the student loan debt numbers in the context of the more important “national economy”.
I’m confident that WB’s post is a perfect example of why stupid people should neither become:
- Parents
- Lawyers
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The market should dictate that, at least in part. We don't need a nation of Women's Studies majors
Well, if that's the case I want my piece of the pie. I lived ridiculously frugally when I was young, not by choice, and managed to create a decent life for myself by saving, investing and building for the future. Don't penalize me for making good decisions. If we have widespread student loan forgiveness I want somebody to cut me a check for the average amount of debt a person is forgiven.
Not taking loans, but I explained fairly clearly to what majors I was paying for...
You need to be “less transparent” when you’re “physhing”.
Do I need to teach you everything, Grasshopper?
You can’t just come out of nowhere and ask a fellow poster if they are UK citizen. That’s not how the real world and this board “functions”.
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