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Message
Govt should incentivize student loan payback by allowing all payments to be deducted.
Posted on 11/15/17 at 8:46 pm
Posted on 11/15/17 at 8:46 pm
I should have stated that I owe zero in student debt at this point. Mentioned in another thread that I just paid off my nearly $200k student loan debt. I don't disagree with what is being said about the ridiculous expense of university or even the benefits of many degrees. I am simply stating the need for incentivization of payback for an existing problem. I'm no snowflake. I'd like to see our generation change the direction of our national debt.
Student debt comprises one of the largest types of personal debt. It is in the economical interest of our county to decrease personal debts. Most of my colleagues who graduated with me are paying the minimum payments and even deferring their student debt because they see it as "cheap money" to have borrowed. Most interest rates hover between 5-7% for graduates over the past decade. I was allowed to deduct 0% of my interest rates over the past 4 years. All of my repayment was 100% post tax. If the govt would allow all educational loan repayment to be tax deductible then every dollar you spend would in essence earn you your tax rate back. This would allow for quicker payback and would incentivize payers to apply more money towards their loans because they would in essence be earning a much higher rate than most any typical investment rate.
Student debt comprises one of the largest types of personal debt. It is in the economical interest of our county to decrease personal debts. Most of my colleagues who graduated with me are paying the minimum payments and even deferring their student debt because they see it as "cheap money" to have borrowed. Most interest rates hover between 5-7% for graduates over the past decade. I was allowed to deduct 0% of my interest rates over the past 4 years. All of my repayment was 100% post tax. If the govt would allow all educational loan repayment to be tax deductible then every dollar you spend would in essence earn you your tax rate back. This would allow for quicker payback and would incentivize payers to apply more money towards their loans because they would in essence be earning a much higher rate than most any typical investment rate.
This post was edited on 11/16/17 at 11:42 am
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Posted on 11/15/17 at 8:47 pm to Upperaltiger06
One of the biggest problems with higher ed is the unlimited money-spigot for universities caused by federally backed student loans. The solution isn't to get more involved but less. The federal government should not be incentivizing loans. If they stopped, the laws of supply and demand would cause tuition prices to plummet back to reality.
Posted on 11/15/17 at 8:48 pm to Upperaltiger06
quote:
It is in the economical interest of our county to decrease personal debts.
No it isn't. An entire generation is controlled through debt.
Posted on 11/15/17 at 8:48 pm to Upperaltiger06
why dont you frickers just pay your debt
Posted on 11/15/17 at 8:48 pm to Upperaltiger06
Is that you Bernie?
Posted on 11/15/17 at 8:49 pm to Upperaltiger06
Posted on 11/15/17 at 8:50 pm to Upperaltiger06
Student debt is subsidized to begin with.
Posted on 11/15/17 at 8:51 pm to Upperaltiger06
There should be no phase out on the deduction of the interest. They’ll never let principle payments be tax deductible since it’s never taxed as income when the loan is taken out.
Posted on 11/15/17 at 8:52 pm to Upperaltiger06
The government shouldn't back student debt. If the true market rates were applied, people would be discouraged from taking out the loans altogether.
The fact that an 18 year old can borrow money @ 5% for a general studies degree is the asinine part of the entire ordeal.
The fact that an 18 year old can borrow money @ 5% for a general studies degree is the asinine part of the entire ordeal.
Posted on 11/15/17 at 8:55 pm to Upperaltiger06
I love how the same people who complain about any type of student loan reform are the same people who have 3 kids who receive TOPS. Total fricking hypocrites!
Posted on 11/15/17 at 8:55 pm to kingbob
quote:
One of the biggest problems with higher ed is the unlimited money-spigot for universities caused by federally backed student loans. The solution isn't to get more involved but less. The federal government should not be incentivizing loans. If they stopped, the laws of supply and demand would cause tuition prices to plummet back to reality.
Exactly.
We've elevated universities to a point where they're beyond reproach. Last year's state budget crunch revealed the fact that people think there is no fat to be trimmed from public universities. They're some of the most bloated bureaucracies today.
Posted on 11/15/17 at 8:55 pm to slackster
Yeah, then education would be for the elite. That didn’t work out well. An educated society helps everyone.
Posted on 11/15/17 at 8:56 pm to Upperaltiger06
let's cut the bullshite. i just want them to pay mine off for me.
just let me live my snowflake life.
just let me live my snowflake life.
Posted on 11/15/17 at 8:57 pm to Upperaltiger06
I know millenials unfairly get a lot of crap based on stereotypes, but when it comes to debt and paying it off, you snowflakes deserve every criticism aimed your fricking way.
Posted on 11/15/17 at 8:59 pm to Upperaltiger06
Accounting wise it makes sense as it was a cost accrued to earn the income, so you'd expect to be able to deduct the costs from the proceeds.
Posted on 11/15/17 at 9:00 pm to AUCE05
quote:
Yeah, then education would be for the elite.
, no. College educations would be for those who can capitalize on it. If you're taking our $50k because you got a 22 on the ACT and want to live off campus while you pursue your marketing degree at State University, you're not helping society in the slightest. Posted on 11/15/17 at 9:07 pm to AUCE05
quote:
Yeah, then education would be for the elite. That didn’t work out well. An educated society helps everyone.
The education that those elites received was better than what we get now. It was certainly much harder.
In fairness, I don’t think we could hack that sort of rigor.
What we have now is watered down credentialism which does little to educate, and does nothing for society.
This post was edited on 11/15/17 at 9:08 pm
Posted on 11/15/17 at 9:08 pm to Kujo
quote:
Accounting wise it makes sense as it was a cost accrued to earn the income, so you'd expect to be able to deduct the costs from the proceeds.
Well in that case, the cost to be deducted is the education, not the loan proceeds. Then, everyone that goes to college can deduct.
This brings up so many problems. Did you graduate? Was there actual work (potential income) for this investment? What about the guy that worked 2 jobs to put himself through school? He could have just gotten a loan and partied.
Posted on 11/15/17 at 9:10 pm to Upperaltiger06
College is bs, just become a pipefitter.
Posted on 11/15/17 at 9:16 pm to AUCE05
quote:
Yeah, then education would be for the elite. That didn’t work out well. An educated society helps everyone.
The average college grad is not much better educated than the average high school grad. Just look at all the posters on this board who can't spell correctly and blame it on autocorrect.
I'll also note that for the most part anyone can just buy the textbooks and learn on his own, especially with all the online resources available.
A degree helps you market yourself because it's a certificate to back up that you studied a certain curriculum. But it doesn't mean you actually learned how to think.
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