Student loan forgiveness

IMHO, government overreach into education IS EXACTLY why costs have spiraled out of control. Taxpayer supported schools have become, for all intents and purposes, for profit.

 

Would you remove federal student loans/grants?

 

This is a complete circle jerk.

Colleges charge whatever they want, knowing the bank and gov will fund it.

Colleges get paid, Banks get paid, everyone is happy. Except those students who think they'll get a job to pay off a $200k undergrad degree.

Sent from my smatrfone

 

There is no problem so big that government interference cannot make it worse.

 

Might help. IIRC, my loan (1974-78) was federally insured but managed by a "private" foundation. I have no answer on how to get the costs back under some sense of reality short of reduced demand. Does anyone have any stats on how much of the $100k plus debt is to state institutions vs the proliferation of for profit, internet schools? IMHO, federal money has driven those costs up dramatically.

 

Ok, serious question how much are these loans people are taking out? My entire Associates program is $6,000 and tuition/fees are $6,000 a semester at the local University so $30K on the low end and $48K on the high end if you skip junior college. People with a college degree can't pay off $48K in 20 years, people pay off cars worth that in 5-7 years.

Total Principal Paid $50,000
Total Interest Paid $35,971.73
Monthly Payment $ 358.22
Interest 6%
Terms 240 months

I just don't understand how there's a student debt crisis


Edit: I never even finished any degree and I'm making close to $70k, People with an actual degree can't seem to find good paying work?

 

If my company fails I'm not getting a bailout, I get to file bankruptcy and restructure or completely go out of business.

 

You're not too big to fail.

 

We need a diploma repo man,,, can't pay your loan, they come and get it

 

It is unconstitutional to take from one group to benefit another. This is not eminent domain, you will be taking money from the lower class to benefit the middle class based on that is who mainly attends college. This would violate the Takings clause as wealth redistribution. Who is being compensated for their loss when you repay the banks?

 

This might explain it: https://admissions.psu.edu/costs-aid/tuition/
In state tuition is $18,454 / yr plus a majority of students are also financing their living expenses such as room/board/books/etc. Penn State estimates that to be $13,410-16,632 /yr.
So that puts you at $31,864-35,086/yr and $127,456 for 4/yrs.

There may be some financial aid/scholarships in there to offset some of that. Obviously this is not a smart way to go about it, but it is the way MANY students do go about it. I worked several jobs and skimped on anything I could, didn't park a car on campus and generally tried to be as economical as possible and even with the GI Bill helping me out, I still ended up with a pretty decent loan. Fortunately I ended up in a profession where I can afford it.

I would be pretty annoyed if they just forgave the debt of people that didn't put forth any effort to cut costs, but that seems to be the way we're heading these days.

 

At this point, it's all just semantics. Call it loan forgiveness or call it default, that money is not coming back.

 

Financing living costs? Ok so Penn State is 6K more per year on tuition so that's 24K more for the degree but that's still 515/mth over 20 years. That Full 128K with living expenses is $917/mth over 20 years, certainly a chunk of change but for someone with a degree making 50-60K a year starting out they should be very comfortable in making those payments if they accommodate their living. I think that's the problem, people aren't accommodating their living and they feel the NEED a pen state, duke, or yale degree.

 

Nope...

If you took out a loan to get a degree in Peruvian Interpretive dance to keep from having to enter the work force I have no sympathy for you not being able to earn enough money to pay back the loan. Pay your bills kids...the rest of us have.

 

What is the starting salary for a gender neutral aromatherapist? The engineers are probably paying their bills.

 

and theirs...

 

Yep, they will give you a student loan for "cost of attendance", not just tuition. The loan disbursal goes to the school, they take their cut for the tuition and cut a check to the student for the rest, sometimes divvied out all at once, sometimes in installments. I usually had to take some extra over tuition, but tried to limit it as much as possible because, you know, it has to be paid back at some point with interest. Crazy concept I know.

 

I like to watch The People's Court and Judge Judy.
These days there are many plaintiffs, usually young women,
who are there suing to recover a few thousand dollars they
have spent on someone else, usually a boyfriend (or girlfriend),
and the source of the money is funds for college from Uncle Sam.
These funds are provided to support the student with food,
transportation, and housing.
At least some of that is in the form of grants.

 

Let's do some simple math here folks.

Say somebody Has that $70k a year job and the $400 student loan payment.

You graduated and get your own place. Normal right?
Car from high school no longer running...so you're on the hook for a car note (not to mention you probably think you deserve a new car after finishing school). Average vehicle is $30k nowadays..but let's say they get a used car at $20k Living in PA:

$70k a year salary..take home will be around $4k a month after taxes. Let's do some basic bills:

Rent/utl 1500
Student loan 400
Car note 400
Car insurance 150
Health insurance 250
Food 400 (groceries)
Gas 200
Phone 100
---------------------------
$3300

So $700 leftover and we're talking basic living expenses.
That's before eating out/ entertainment/saving/retirement/ hobbies etc etc.

Throw a kid in there and you're fucked with $1000 a month in childcare + everything else goes up.

 

Too bad...you get to have hobbies later when you can afford them. Reading is free and still considered entertainment last time I checked. Public libraries aren't completely gone yet. Plenty of used cars around for less than 20k. Used to be a lot more around but the savior from Chicago took care of that with cash for clunkers. No one needs a cellphone. We seemed to manage to get things done day to day before they were common place.

Lastly if you can't afford to feed and house a kid then masturbation is still free. One would think with all the edumacation you got in college no one would have to spell that out for you. But then thinking isn't high on the current college student list of things to do these days.