OT: Today is National Student Debt Day
http://www.politico.com/tipsheets/morning-education/2016/01/its-nationa…
Today is National Student Debt Day. A group of student debt activists are convening in DC to bring attention to the student debt crisis that America is facing.
Personally, I think this is really important and I believe student loans are a huge anchor weighing down the economy and I'm glad it's getting more attention. I wanted to see what MgoBoard thought. Discuss.
January 28th, 2016 at 4:22 PM ^
First off, everyone wants #2, so it's kind of strawman-y to suggest that someone arguing against a bailout doesn't. Second, #1 is hard to accomplish without a bailout of some kind. Lower the interest rate? OK. Work a little harder on payment plans? OK. But it's not mutually exclusive to argue for easier payments and that people who incurred an obligation should, in fact, have to live up to that obligation.
It might be that nobody here is arguing for a bailout, but certainly there is plenty of clamor for it in the "national debate."
January 28th, 2016 at 5:02 PM ^
Not everone wants #2, as multiple people in this thread have denied the existence of a problem, including UM Fan. Anyway, I'm not advocating a particular policy solution. I'm not that smart. My sole point was that repeatedly typing variants of "they signed up for it" isn't a meaningful contribution to the discussion. We all know they signed up for it.
January 28th, 2016 at 4:34 PM ^
how has no one mentioned the easy access to loan money yet? Once federally subsidized loans are gone, this problem will be largely solved.
January 28th, 2016 at 1:15 PM ^
Over-turn Griggs vs. Duke Power Company and allow companies to start testing high school students and training them. The idea that every job needs a college degree is bubkus, as well as the assertion that test scores are more biased that the current college system.
January 28th, 2016 at 1:17 PM ^
My buddy is making a killing right now as an electrician. One of my clients asked me if I knew a good plumber the other day. The sad thing was, I didn't, I do not know a plumber. The plumbers I knew have retired, and none of their children took up the business.
January 28th, 2016 at 1:43 PM ^
Sent from MGoBlog HD for iPhone & iPad
January 28th, 2016 at 3:35 PM ^
Electrician and plumber are two professions that seem to have been given short shrift in recent decades, and it's a shame. You won't get rich, but the money is decent.
And your job can't be outsourced.
January 28th, 2016 at 4:33 PM ^
work 25 years, retire at 50, with no debt, on your own schedule, outside of a cube farm? Seems great to me!
How many people get rich after going to college?
January 28th, 2016 at 1:15 PM ^
I can't participate...CAUSE I PAID MINE OFF LAST YEAR SUCKAS!
January 28th, 2016 at 1:16 PM ^
debt should be forgiven, but it is comes to that, I will comply.
January 28th, 2016 at 1:16 PM ^
That said, if we're going to do student debt forgiveness, I want my credit cards paid off too.
January 28th, 2016 at 1:20 PM ^
I'm paying nearly $700/mo in student loans. If I didn't have a ridiculous amount of loans (much of that interest) I would put away to buy a house, save for retirement and invest more. I mean I can barely afford rent and a cheap old car.
Think of how the economy would benefit if a whole generation wasn't saddled with crazy debt. We would spend that money on things that would drive the economy - things like consumer goods, housing, etc etc.
Admittedly, I did a lot of beer drinking at U of M. But ultimately, I got a degree. And I don't think 4 years of college should take 20 years to pay off.
January 28th, 2016 at 1:25 PM ^
I understand what you are saying, however, somebody would be paying for your student debt even if you were not. Nothing is free.
January 28th, 2016 at 2:15 PM ^
THANK YOU
My god...some people just don't understand this simple point. It's not like the company that provided the debt will just write off whatever is still owed. If that does happen, it's on very rare occassions.
Bottom line: don't go to college if you're not willing to pay for it. Yes it's expensive, yes the repaying with interest sucks, but that is part of it. College is not free (for you) unless one gets a full scholarship.
January 28th, 2016 at 1:42 PM ^
You're essentially saying "man, if I hadn't spent all that free, or at least deferred interest, money on something else a while ago, I could have nicer things today. You took money from people and promised to pay it back. They agreed to give you that free money so long as you paid with interest. You literally only got the money because you agreed to pay the interest. You also don't have to pay the minimum payment to subsidize your beer drinking. They will happily take the money you took back from you more quickly if you'd like to pay less interest.
Why did you take out so much debt? What was your degree in?
January 28th, 2016 at 1:45 PM ^
I don't think 4 years of college should take 20 years to pay off either but no one forced you to enroll in an expensive institiution and take the loans out. If you're paying $700 a month in tuition the loan principal would have been enough to get you through an in-state school like EMU with money to spare.
January 28th, 2016 at 1:52 PM ^
Yes , but I got into the University of Michigan. I went there because it was the best school I got into and more affordable than other ones I could have gone to. This was in the late 90s when the sky was the limit and employers, teachers, parents, politicians, the media were telling me to go to the best school because graduates of the top schools, like Michigan, make great money when they get out. So that's why I went to U of M.
January 28th, 2016 at 2:18 PM ^
So basically you're admitting that it's your fault that you are in such debt. I'm sorry you have to pay that much per month, but you made the decision to go to UofM and agreed to take the loan with the promise of repayment and interest. That's how loans usually work.
January 28th, 2016 at 3:25 PM ^
Yeah I know how loans work. Yes I'm admitting I'm in debt for decisions I made years ago that were supposed to benefit my future (and have). I was 18 when I made the decision to attend U of M. Do I regret it? Not necessarily. It was my best option at the time. Maybe I should've gone to the other school that wasn't as good. Or gone to community college instead. Or went into the military first instead.
But, do I wish I wasn't an 18 year old idiot? Yes! Do I wish I could've read the future? Yes! How was I supposed to know the economy would suck and the loans would be so burdensome? No one knew that's how it would turn out. By the way, I didn't have much of a choice.
My point is that I'm not the only one in this boat. An entire generation of Americans took the bait and signed up for loans that are too expensive for them. This is not good for them, nor is it good for the economy.
January 28th, 2016 at 3:41 PM ^
So, who will pay for them when they're "wiped clean?"
January 28th, 2016 at 3:56 PM ^
We the people.
Hell we already pay for the problems of kids in Afghanistan and Iraq. Might as well pay for the American kids while we're at it.
/s
January 28th, 2016 at 8:33 PM ^
Again, man, did you read what I wrote? Where did I say I want them "wiped clean"? That's not what I or anyone else is saying. I want a more sensible interest rate so I can pay them off sooner. I want price controls to keep tuition rates from continuning to rise. And I want the ability to discharge them in bankruptcy.
Can you imagine what this economy would be like if people like my brother, who has worked hard to get a masters in architecture, only paid $400/mo in interest instead of the $600/mo he currently pays? Or $300, or $200 or even $0 in interest? He would spend that money. He would buy a car. He would get cable. He would invest. There are thousands, millions more like him. It's holding back our contributions to the economy...
January 28th, 2016 at 4:19 PM ^
* an entire generation who were indoctrinated in schools that college was the only option and we could do whatever our little hearts desired.
January 28th, 2016 at 4:30 PM ^
ah, a sheeple. It's ok, you probably had a $45k wedding too didn't you? Married at 25? Wasn't until later that you started thinking for yourself and that as a male, you're on your own no matter if you're married, went to college, or are working.
January 28th, 2016 at 1:21 PM ^
for my student loans fund I'll happily accept. Or if you can't spare $$, I'll glady take some MGO Points.
January 28th, 2016 at 2:27 PM ^
My father worked hard for his MGoPoints and so have I. If you want to accumulate them faster, stop spending so many downvotes.
January 28th, 2016 at 1:25 PM ^
Im on the No Pay MBA program right now over at Coursera.
January 28th, 2016 at 4:28 PM ^
you're paying for a piece of paper. Coursera is the future.
January 28th, 2016 at 1:33 PM ^
Don't do student debt forgiveness because the IRS looks at the forgiveness as income and you will be taxed on the lump sum. At least that's what I've been told.
January 28th, 2016 at 1:45 PM ^
Sent from MGoBlog HD for iPhone & iPad
January 28th, 2016 at 9:11 PM ^
An important point here. For PSLF, the forgiven amount is not going to be taxed. For "running out the 25 year clock" I think they are taxed.
I read every line of the PSLF stuff about 3 times before I went all in on it because I had been paying my loans off in an accelerated rate. However, once I learned about it and learned that the final amount wouldn't be taxed, I immediately switched and stopped paying any extra.
Now, my income-based payments (about 410 a month) for 10 years will cost me about 52000. Assuming a small income increase over that time - in my position I'm unlikely to have that payment go above $500 a month, so I'm solidly looking at a max of $55,000 paid over the course of the 10 years.
My current loan balance? $52000. So, if I believe I'll still be working at non-profits for 8 more years (and I solidly do), I'll actually end up paying next to no interest on my loans. It makes no sense for me to accelerate my payments and instead I'm putting that money into retirement.
All assuming that the program doesn't collapse or get yanked by some politicians........
January 28th, 2016 at 2:18 PM ^
Another reason to abolish the IRS...
January 28th, 2016 at 3:23 PM ^
Sent from MGoBlog HD for iPhone & iPad
January 28th, 2016 at 5:45 PM ^
Sent from MGoBlog HD for iPhone & iPad
January 28th, 2016 at 4:18 PM ^
I think you forgot the "/s" tag. Or, if you're serious, who do you think will go about collecting the taxes? Or do you think Americans will voluntarily pay their fare share (of course not)? I'm curious to learn of your plans for a post-IRS America...
January 28th, 2016 at 1:35 PM ^
I'd settle for not being treated as a profit center. The only substantial risk of default on student loans is death, so I don't really see the risk to support high interest rates.
January 28th, 2016 at 1:37 PM ^
Student debt is a huge problem. Back in the late 70's, between a summer job at Ford, a couple Pell Grants and other grants, a few student loans at 2%, I was able to completely cover tuition, room and board at Michigan. Those days are long, long gone. As a parent, living in Illinois, Michigan was out of the question. I don't have the kind of salary to make that happen.
My own firstborn daughter has been in the Navy almost 3 years, and was highly motivated by the GI Bill. She didn't want to end up saddled with huge piles of debt like many of her friends.
There was an article I read recently about college costs . . . might have been NY Times, might have been Washington Post, might have been linked here. The point was that the cost of administrative support had exploded, and was the major reason for huge change in college costs.
Lastly, I do believe that not everyone should go to college. In a way, there is something wrong with the entire system, and there should be a better way for people to go to trade and technical schools.
January 28th, 2016 at 2:10 PM ^
I think it was linked here. Admin costs are part of the problem, no doubt. So is the requirement to stay on campus for 2 years by many schools, who have jacked up the cost of room and board. Book prices, tuition, and rent prices near campus have all increased exponentially, while wages remain flat. It's a slog out there. Glad to be done with it.
January 28th, 2016 at 8:59 PM ^
It's an arms race and a catch-22. Students make an awful lot of their admissions decision now based upon the availability of this support, in addition to all of the spending on new forms, gyms, libraries, etc. Support services are a massively big deal in that, and that's a major difference from when you and I went to college.
Sent from MGoBlog HD for iPhone & iPad
January 28th, 2016 at 1:39 PM ^
I took out the loans and I feel obligated to pay them back. However, I know something needs to be done to fix the soaring cost of college. I would be in favor of grandfathering out the federal loan program if I wasn't afraid that they would be replaced by higher interest loans that were still "guaranteed" in some way by law.
January 28th, 2016 at 1:44 PM ^
January 28th, 2016 at 2:11 PM ^
January 28th, 2016 at 2:22 PM ^
Yeeeeah. $700K sounds excessive. I cannot imagine someone's truly being almost three quarters of a million dollars in student loan debt.
January 28th, 2016 at 2:43 PM ^
January 28th, 2016 at 4:14 PM ^
January 28th, 2016 at 2:39 PM ^
Is she an invasive cardiologist? Even if so, that's high.
January 28th, 2016 at 2:49 PM ^
January 28th, 2016 at 4:22 PM ^
January 28th, 2016 at 9:03 PM ^
Sent from MGoBlog HD for iPhone & iPad
