Student Loan Payments - GOING UP!

[MisterChester]

I've heard stories...

"Before the dark times... Before the empire."

 

[tetter]

School is expensive, but it's still a good value for many. I might be paying on my loans for longer than I like

 

[Jludo]

Yet.

If I thought that was at all possible I'd have gone with the Rose Hulman engineering degree and the 120k debt which accompanies it.

 

[Jludo]

School is expensive, but it's still a good value for many. I might be paying on my loans for longer than I like

It's a good value for any career in which formal schooling is mandatory. That's about it though.

 

[hornadylnl]

If I thought that was at all possible I'd have gone with the Rose Hulman engineering degree and the 120k debt which accompanies it.

How many decades can you take 2 classes and defer your payments? I know one guy is is working on his second decade. Associates, bachelors and masters last I heard and he's still a welder in a factory.

 

[CountryBoy1981]

I'm sure they are correlated, but not totally. If the government stopped handing out college loans indefinitely tomorrow we would not see a drop in tuition. Colleges are turning into telecommunication companies, raising their prices more than inflation and inventing fees/charges that aren't necessary. You are right, not everyone needs to go to college. I don't think anyone would be able to find a high school these days that will tell that to students though. But who can blame them though? When a large number of decent paying jobs require a college degree, not getting one can severely limit career options if one does not go into a trade.

We might not see an instant drop, but when students can't afford (loans) to pay the high tuition, the free market will control and colleges will either have to lower tuition or go out of business.

 

[ModernGunner]

In what, 1965?
Show me the job I can work and pay my tuition in cash and I'll be there in a heartbeat.

Safety field.

 

[jamil]

When you make something easier to get, everyone wants it.

 

[HoughMade]

The increase in post-secondary education cost is due to many things. Here is a far from exhaustive list:

- Ease of availability of loan money allows prices to rise without an immediate effect on must consumers (think- health care costs)
- Competition for big name professors causes some faculty salaries to skyrocket
- The remainder of faculty salaries, which do not skyrocket, are drawn upwards
- Competition to have the latest technology, most impressive buildings and most comprehensive services....to market to students
- The cost of administrative salaries has skyrocketed driven by competition to attract fund-raising stars
- increase in the number of people going to college allows the colleges to price higher without fear of losing too many students (and drives #1, above)

...and very few of these reasons have anything to do with a higher quality education.

Here's a depressing example.

My last year of law school, 1997-1998 school year, tuition was $18,000.
This year, the tuition for that same law school was $39,000.

That is a 117% increase in 16 years. I think, maybe, only fuel prices exceed that amount of growth.

 

[Redhorse]

Most people today are too young to remember a time when the federal government had nothing to do with student loans. How much more of our lives must they confiscate before the average bubba walking down the street realizes what the term "freedom" really meant in America and how it is completely gone.

I hear ya. That's why I work hard everyday and pay my own way. If he government wants to be involved so bad they should force public universities to slash their tuition rates. Rocket science

Also, students who maintain an exceptionally big GPA should have next to no tuition to pay but that's just my opinion I guess.

 

[PeaShooter]

If I thought that was at all possible I'd have gone with the Rose Hulman engineering degree and the 120k debt which accompanies it.

That potential debt is the reason I went to Purdue instead of Rose Hullman. Well that and the whole all male thing at the time.

But seriously, you have to look at the big picture. Just pay the minimum payment for 20 years then your loans are forgiven! Just have to suck it up for 20 years to get your "retirement" from your student loans. Yet another redistribution of wealth.

 

[Jludo]

That potential debt is the reason I went to Purdue instead of Rose Hullman. Well that and the whole all male thing at the time.

But seriously, you have to look at the big picture. Just pay the minimum payment for 20 years then your loans are forgiven! Just have to suck it up for 20 years to get your "retirement" from your student loans. Yet another redistribution of wealth.

Rose Hulman isn't all male

 

[jamil]

Rose Hulman isn't all male

You must be a whipper-snapper. Prior to mid 90s they were all male.

 

[hoosierdoc]

Student loans are the new indentured servitude system for the world. They will do anything for "loan foregiveness" programs and be at the .gov's beck and call because they took absurd loans to get an absurd degree.

this EO simply makes it easier for kids to take absurd loans and allows them to stay in debt longer. Obama needs to get them dependent on him as young as possible.

 

[hornadylnl]

A college degree has become a defacto licenseing scheme. And who better perpetuates it than those with said "license"?

 

[tetter]

Student loans are the new indentured servitude system for the world. They will do anything for "loan foregiveness" programs and be at the .gov's beck and call because they took absurd loans to get an absurd degree.

this EO simply makes it easier for kids to take absurd loans and allows them to stay in debt longer. Obama needs to get them dependent on him as young as possible.

I'm on my way to being a Hoosier doc, and you make me feel panicky Hoosierdoc.

 

[HoughMade]

The increase in post-secondary education cost is due to many things. Here is a far from exhaustive list:

- Ease of availability of loan money allows prices to rise without an immediate effect on must consumers (think- health care costs)
- Competition for big name professors causes some faculty salaries to skyrocket
- The remainder of faculty salaries, which do not skyrocket, are drawn upwards
- Competition to have the latest technology, most impressive buildings and most comprehensive services....to market to students
- The cost of administrative salaries has skyrocketed driven by competition to attract fund-raising stars
- increase in the number of people going to college allows the colleges to price higher without fear of losing too many students (and drives #1, above)

...and very few of these reasons have anything to do with a higher quality education.

Here's a depressing example.

My last year of law school, 1997-1998 school year, tuition was $18,000.
This year, the tuition for that same law school was $39,000.

That is a 117% increase in 16 years. I think, maybe, only fuel prices exceed that amount of growth.

Oh, and that tuition cost? Keep in mind that is tuition only. You pay $39,000 and haven't eaten or gotten a place to live.

 

[Fuzz]

[h=2]Here’s the Latest Decree from Our Sovereign Lord[/h]

Rick Moran
June 8, 2014


While the rest of us are arguing about Sgt. Bergdahl, President Obama is sneaking through another presidential decree.

This one has to do with student loan forgiveness — a nice little gift to a constituency that the president wants to turn out on election day next November.

Businessweek reports:

U.S. President Barack Obama will move tomorrow to ease monthly payments for people with student loans, according to a White House official.

Obama, in executive action coordinated with a legislative push by Senate Democrats, will direct the Department of Education to expand the number of people who can take advantage of a law capping

“I’ve heard from too many young people who are frustrated that they’ve done everything they were supposed to do — and now they’re paying the price,” Obama said yesterday in his weekly address.
​

What price are they paying? The price of of being dumb enough to take on enormous amounts of debt before they even have a job? Or are they paying a price for majoring in bowling management or puppetry and thinking they will get a job that will allow them to pay off that debt?

The action marks the latest effort by Obama’s administration to advance policies by executive action after being stymied on Capitol Hill. With the help of several cabinet heads, the president has spent much of this year initiating modest changes in programs that may provide a boost to Democrats in advance of the midterm elections.

Obama’s action tomorrow will expand a 2010 law that tied payments to income, according to the White House official, who said an additional 5 million people who took out loans before October 2007 or haven’t borrowed since 2011 will be eligible.

The proposal aligns with a bill from Senate Democrats that would allow individuals to refinance their student loan debt at current rates. Democrats have argued that the $1.2 trillion worth of outstanding student-loan debt retards economic growth as young college graduates are forced to postpone home buying or other purchases.

Senator Elizabeth Warren, a Massachusetts Democrat and sponsor of the bill, called student-loan debt levels “truly an emergency circumstance.”

Republicans have opposed the proposal, which would be paid for through tax increases on wealthy individuals, and are likely to block its passage.

“This bill doesn’t make college more affordable, reduce the amount of money students will have to borrow, or do anything about the lack of jobs grads face in the Obama economy,” Senate Minority Leader Mitch McConnell, a Kentucky Republican, said in a statement.

In a preview of the political message Democrats will advance this week, Obama said in his weekly address that lawmakers will have to choose whether to “protect you from crushing debt, or protect tax breaks for millionaires.”
​

The president and the Democrats are acting as if college kids who took out huge loans are victims. No doubt millennials love to hear that. Anything is better than admitting to yourself that you’re an idiot to get yourself into a situation where you can’t pay back what you owe.

The way to protect yourself from crushing debt is not to take on more debt than you can reasonably expect to pay back. This is what the grown-ups do — or some of us, anyway. How many student loan scofflaws actually had a good notion of what their salary would be the first few years after they graduated before they took out a loan? Apparently, not enough.

Certainly the lack of good-paying jobs is part of the problem. But it would help matters greatly if more students who wanted to go to college figured out a way to pay for it without taking on massive amounts of debt. Is there a law that says you have to start college at age 18? Why not work for three or four years, start a little later, and take on less debt? This was not an uncommon option before government got into the student loan business.

Anything is better than the system we have now.




The PJ Tatler » Here?s the Latest Decree from Our Sovereign Lord​

 

[HeadlessRoland]

I thought student loan debt was the only kind of debt you can't get out of paying.

It's virtually impossible to discharge student loan debt. It survives bankruptcy. Upon default, they sue or garnish wages to recover debt. Public service will eliminate some of it. But there's a limit on the amount. I don't know how much. It's virtually impossible to discharge or have it forgiven. Loan forgiveness is a unicorn. In theory everyone knows what it is, but no one has ever seen it, and it doesn't really exist. Who said indentured servitude was dead? You owe money via a federal student loan and can't pay it back, your only realistic options are death and death.

 

[PistolBob]

In what, 1965?
Show me the job I can work and pay my tuition in cash and I'll be there in a heartbeat.

No problem. The United States Marine Corps. My son served 8 years, did a year of that in Iraq. Earned his undergrad in Business Admin by taking online and night classes while he was working as a Marine in California and North Carolina. He's been out two years now and the USMC is still paying for his classes AND he gets over $1000 a month for being a FT student working on his Masters at IU. The Marines paid 100% of his tuition for undergrad and I bought the books. They are paying 100% of books and tuition for his Graduate degree under his GI bill.

Now, keep in mind while doing that, he got married, had a couple of kids, and managed to earn the rank of Sgt.

Yeah we're kind of proud of him. My other son got a 80% scholarship to a local private college because of his personal community service efforts and the fact he obtained the rank of Eagle Scout. He worked PT to make up the diff. Keep in mind this is recent history, not some story from the 90's.

It can be done. It's not easy, but nothing worthwhile ever is.