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re: U.S. poised to forgive $108 billion in student debt
Posted on 11/30/16 at 12:07 pm to AbuTheMonkey
Posted on 11/30/16 at 12:07 pm to AbuTheMonkey
Older milliennial who once had 6 figures in debt also. Never missed a payment and will pay mine off early.
People who don't understand interest should be taking out loans like this. Unfortunately too many parents never bothered to explain this shite to their kids.
People who don't understand interest should be taking out loans like this. Unfortunately too many parents never bothered to explain this shite to their kids.
0
Posted on 11/30/16 at 12:07 pm to Deactived
I'm not bitching -- I'm just pointing out there is a huge problem. You can't have a high cost of education, high cost of living, and a poor job market. Something has to give and our economy is already over leveraged.
Posted on 11/30/16 at 12:08 pm to upgrayedd
quote:
Nothing like giving millennials even more of a reason to be a smarmy, entitled, worthless group of people
The only thing worse than millenials is the generation thag raised them
Posted on 11/30/16 at 12:09 pm to TheOcean
Don't forget the housing market...
Posted on 11/30/16 at 12:12 pm to ForeverLSU02
quote:
as I just finished paying back my $40k two months ago. This country is fricked. No one takes accountability for anything anymore
Paid of 90k+ from may of 08 to July of 10. That would've looked pretty good invested in something right about now
Posted on 11/30/16 at 12:14 pm to St Augustine
With that much debt itd probably would have been wiser to invest elsewhere and just pay the minimum
But that's on you.
But that's on you.
Posted on 11/30/16 at 12:14 pm to St Augustine
Jesus what interest were you paying that lead you to put 90k into those in two years?
Posted on 11/30/16 at 12:14 pm to Steadyhands
quote:
I get the interest. Why should the government make so much profit off of citizens to get higher education, which leads to higher paying jobs and more taxable income down the road. It makes sense to make money on loans for a house or a car, not education.
You need to distinguish between the government making profit (which is screwed up and does happen) and the government charging interest. It has to charge interest, otherwise it's a free giveaway and will distort the education market even more.
Education isn't really any different than a house or car in increasing the economic production of a country. Cars, for instance, enable faster transportation and increase the productivity of a country. Thus, companies make more money, the government gets more revenue, and the economy grows.
quote:
The way it is now, the government is writing checks to anyone for any degree. A private bank wont give anyone any loan amount for a car. They assess its value and give a fitting loan amount. Why should the government be any different? In the end, if someone defaults on a private loan, the lender takes the hit. Well guess what, the government never assessed the value of different degrees and now they're taking a hit.
You're arguing two different and antagonistic things here and in the first paragraph. Here, you're asking for a private market to set student loan interest rates based on likely future income of the degree and university (and those rates would likely be a lot higher than the current subsidized rate system we have for many, many people - college students have no collateral). I'd be perfectly fine with that, but that is totally opposite than asking the government not to charge interest at all.
quote:
I have a great degree and a great paying job. I will gladly pay it back. I just think there needs to be some massive changes to the way they give out money and to how universities charge people, like out of state tuition. I graduated 5th out of the entire engineering college at ULL, and yet it cost me more than anyone from in state.
You'll have to take that up with the state government. And I'll also be quite honest with you: going out of state to another public school is a sucker's bet and is a way universities bilk a lot of people.
Posted on 11/30/16 at 12:16 pm to RLDSC FAN
So if someone sacrificed, made good financial decisions and paid off their student debt, will they be getting refunds also?
Posted on 11/30/16 at 12:17 pm to AbuTheMonkey
quote:
That's the biggest complaint of our generation - we were too sheltered from risk, financial or otherwise, to fully understand its implications and to learn how to approach calculated risk
Agreed. Since most people are too stupid to do this on their own and pick a worthwhile degree, why not just lend less money for lesser degrees?
As a banker, you're an idiot if you give out more money than something is worth. Yet this is exactly what has happened with education. At least with a house, a bank can reclaim it and sell it. Someone's degree is worthless to the government if they won't be able to one pay it back, and two have a higher taxable income.
Posted on 11/30/16 at 12:18 pm to Steadyhands
Because this whole program is just a giant welfare program for universities and university administrators cloaked as a program to help the poor.
Posted on 11/30/16 at 12:20 pm to ForeverLSU02
I've still got 24k to pay.......KILL ME NOW 
Posted on 11/30/16 at 12:22 pm to RLDSC FAN
Pushing off payments until this comes to life. 
Posted on 11/30/16 at 12:23 pm to thegreatboudini
I'm not sure on your exact situation, but you may not understand PSLF.
Posted on 11/30/16 at 12:24 pm to AbuTheMonkey
quote:
I'd be perfectly fine with that, but that is totally opposite than asking the government not to charge interest at all.
I did not say to not charge interest at all. I simply said it should not be so much.
Having it ran like a private system has nothing to do with interest in what I said. I was discussing the principal value of the loans.
There is some collateral in a student...their degree means that one day they'll pay the loan back and the real return comes when they start paying more income tax.
If you pick a shitty degree that has a poor job outlook, sorry, your loan application may be a lot less or denied completely. That's how it should be done.
Posted on 11/30/16 at 12:26 pm to Steadyhands
quote:
Agreed. Since most people are too stupid to do this on their own and pick a worthwhile degree, why not just lend less money for lesser degrees?
As a banker, you're an idiot if you give out more money than something is worth. Yet this is exactly what has happened with education. At least with a house, a bank can reclaim it and sell it. Someone's degree is worthless to the government if they won't be able to one pay it back, and two have a higher taxable income.
Just to clear this up, you want a more privatized system for student loans? One in which private lenders can more accurately determine financial risk based on likelihood of future income?
Again, I'd be perfectly happy with that, but you have to understand some things:
1) Interest rates would likely be higher for most people. That $80,000+ you were paying over the lifetime of a $40,000 loan? Try it being more like $170,000. Of course, engineering majors would have lower interest rates, in general, than a lot of other degrees, but you'd still be paying more. The government subsidizes even your degree right now.
2) The government subsidizes that lower interest rate for everyone. College students have no collateral, and we've determined that in the interest of fairness, interest rates should be consistent across the board no matter the university or the degree. Take that government guarantee away, and a lot of people aren't going to be very happy.
3) It will affect the poor and minority students the most, and we will have to deal with the political backlash.
4) Universities, especially most state universities, won't be nearly as plush as they are now. Mid-tier private schools will basically be a thing of the past.
There are a whole lot more implications to what you're asking here, but you get the idea.
This post was edited on 11/30/16 at 12:28 pm
Posted on 11/30/16 at 12:32 pm to Steadyhands
quote:
I did not say to not charge interest at all. I simply said it should not be so much.
Having it ran like a private system has nothing to do with interest in what I said. I was discussing the principal value of the loans.
You can't just "not charge so much". That's not how assessing financial risk works.
Private lenders are quite often going to have higher interest rates, even for engineering degrees. I promise you that.
quote:
Having it ran like a private system has nothing to do with interest in what I said. I was discussing the principal value of the loans.
The principal of the loan is inextricably tied in with the interest rate. You cannot separate them in this discussion. The interest rate is simply the financial risk on the principal.
What you're proposing would, long-term, lead to higher interest rates probably across the board and lower principal (hopefully) or, at least, a much slower rate of growth in the principal. Does that make sense?
Posted on 11/30/16 at 12:33 pm to AbuTheMonkey
quote:
Just to clear this up, you want a more privatized system for student loans? One in which private lenders can more accurately determine financial risk based on likelihood of future income?
I don't mean make it private. Keep everything exactly how it is now, just assess the value of a degree and give an according loan amount.
Why would you give someone studying history/art/general studies as much money as an engineer or a nurse?
Posted on 11/30/16 at 12:34 pm to GetCocky11
This. Its a clickbait headline.
Factor in some has been paid, and the forgiven portion is taxable income, and its a little more palatable and a much better expenditure of our money than bombing brown desert people.
Factor in some has been paid, and the forgiven portion is taxable income, and its a little more palatable and a much better expenditure of our money than bombing brown desert people.
Posted on 11/30/16 at 12:34 pm to RLDSC FAN
quote:Of that, $0 of mine!
U.S. poised to forgive $108 billion in student debt
Thanks Obama!!!
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