re: What do you choose: 5% for 20 years of your future income or student loan repayment?

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you average 66k for 20 years you'd also have 66k garnished only leaving a 14k delta.

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True, but again the average, so the bottom 3rd is more the concern.

Also, that is based on those that actually work, not the people who decide to be a stay at home mom or otherwise not work.

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cost of college has skyrocketed the last 20 years or so

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Because it’s subsidized.

With the 5%, schools will turn more to teaching necessary, income producing material. Because their earnings are solely based on how their alumni perform.

The huge aspect is alumni support, “hey kujo, we found a job opportunity in Dallas that pays 30% more than your current income. We can send a car to bring you to the airport at 8am on Tuesday if interested”

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How many of you went to college for some mid-level manager dead end middle class life, and see some military or cop retire at 40

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Funny thing is, as a biology major with her sights set on medical school, she will likely be close to half a million in debt by the time she exits medical school. Tuition, living expenses, all the USMLE, Anki, etc. stuff you have to buy. The practice tests, etc. It's super expensive.

It will be of great surprise to her when she's making ~50k/yearly as a resident doctor for 3 years minimum and her best bet might actually be to join the military for loan repayment. Tell her she should look into that now.

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I tried to explain to her that if there were a program that allowed people to sign off on garnishments of 5% for 20 years, then the break even with no interest is $1,600,000 in earnings…or she would need to make $80k annually for 20 years.

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It’s a dumb idea. A better idea would be a 5% garnishment for all with student loans until paid off (with interest). There is no reason to limit it to 20 years. And there is no reason to penalize high earners by forcing 20 years.

Also, any student who is smart would expect to make more than 80k over the next 20 years. If not, how could you justify borrowing money to go to school at all?

I think your financial instinct is pretty much backwards.

She’s not a citizen, immigrant from China who moved here at 13.

Mother & father were principals at schools in China, now they work as an Uber driver and a Bobo Tea manager. Came to give their daughter a better future, she received a partial scholarship (Academic) which is pretty good for some who couldn’t speak English 5 years ago.

Could your kid move to China and in 5 years learn a new language to the point they could read and write it at a competitive level?

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not likely at all, unless she invents/patents some breakthrough drug or artificial organ or something similar

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You don’t think doctors make $100k per year (20 yrs x $100k is millions)? Are you ephen kidding me? Average doctors make $250k-$500k. New doctors average at least $150k, which would be $3 million over 20 years. She will definitely make millions if she becomes a doctor.

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My uncle retired from the air force as a full bird Colonel at 48. He's about to retire from the Civil service so he'll be double dipping.

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That's cool. Doesn't seem worth it unless you can reach a very high level that would require a degree anyway.