Cancel Student Loans to Stimulate Economy? (financing, fees, jobs, payment)

[evilnewbie]

Originally Posted by mjohnson4381

Also, it's kind of strange to me that you're saying that college isn't expensive, but then you say you have $150K in student loans. Most people consider $150K a lot of money.

Because I didn't just go to college, I went further up... most people won't... we are talking about most people aren't we? And if I can borrow that much than 6k is a joke... lets see 6k x 4 years = 24k for your college... lets just add 25% tax bracket to it... thats 30k a year... are you expecting to earn less than that by the time you retire? So here it is... are you going to live within your means and pay off your loan in 5 years are or are you going to sit there and whine that it costs too much... because you aren't able to buy a new BMW... cause you deserve it after all, right?

[bxlefty23]

op-your friend is beyond being an idiot

[bxlefty23]

Originally Posted by killer2021

Student loans these days are the biggest scam. It is legalized slavery. I am not kidding. Especially since you cannot bankrupt them. This type of slavery is called indentured servant. Which is just a fancy term for someone who gets to be free but has to pay the vast majority of their earnings from labor to their master (in the form of student loan payments of course). The only different is that instead of it being for a specific period of time it is for a specific amount of money with interest. That could, technically, be forever. Sure hope going to that ivy league was worth it!



Indentured servant - Wikipedia, the free encyclopedia

excuse me but somebody signs a document stating they will repay a loan at a certain interest rate in a certain time period- this is not slavery.Nobody puts a gun to your head and forces you to take a loan. You take a loan because you figure it will help you in the long run. Stop crying and blaming others if your decision doesnt work out.

[sheenie2000]

Originally Posted by bxlefty23

excuse me but somebody signs a document stating they will repay a loan at a certain interest rate in a certain time period- this is not slavery.Nobody puts a gun to your head and forces you to take a loan. You take a loan because you figure it will help you in the long run. Stop crying and blaming others if your decision doesnt work out.

bxlefty,

The problem is when the loan is at a variable interest rate. Then life happens to them, say a car accident and they can't work for two months. The interest compounds and a 20K loan turns into 40k which then turns into 80K. This is unreasonable and leads the person to NEVER catching up all because of ONE incident that was out of their control.

[wheelsup]

Originally Posted by bxlefty23

excuse me but somebody signs a document stating they will repay a loan at a certain interest rate in a certain time period- this is not slavery.Nobody puts a gun to your head and forces you to take a loan. You take a loan because you figure it will help you in the long run. Stop crying and blaming others if your decision doesnt work out.

While true there should be better access to Government loans. I was lucky enough to have federal loan, my wife on the other hand has a mix of Government and private loans. This was needed for her to finish college. If she wouldn't have gotten the private loans she would've had a half finished degree and $15,000 in student loans for nothing. So of the two options, she took the one which allowed her to finish college.

IMO student loans should be a fixed low APR at something around 4% or so. Enough for the Government to break even or a little more but not enough to prevent graduates from enjoying a bit of the fruits of their labor. I have a friend who lives in an RV so he can pay off his loans. This person is a captain at an airline. Just goes to show you what this world is coming to.

[sheenie2000]

Check this out, it's old but very relevant today. Many more loans are at variable interest rates and much more common than when I went to college some years back.

Sallie Mae's Success Too Costly?, Does The Lender's Success Come At Too Steep A Cost To Students And Taxpayers? - CBS News

[HappyTexan]

Originally Posted by wheelsup

IMO student loans should be a fixed low APR at something around 4% or so. Enough for the Government to break even or a little more but not enough to prevent graduates from enjoying a bit of the fruits of their labor. I have a friend who lives in an RV so he can pay off his loans. This person is a captain at an airline. Just goes to show you what this world is coming to.

But that is a choice the student made when they applied for the loan.
Why not do 2 year community college and then 2 years at a state university and have a much much lower loan.

If people choose to take out huge loans then they have to realize it will be years before they can enjoy "the fruits of their labor".

I have a niece about to graduate college..65K is what her loans amount to right now. Private college out of state..family didn't have much money so it was all loans. 2 year community college/2 year state U wasn't good enough for her. The parents have co-signed so now they are all in the boat for this loan and so far she has not been able to get any interviews due to massive layoffs in her field of study.

It's sad watching family get caught up in this and seeing that they chose to go deep in debt without much thought about the payback terms.

[wheelsup]

Originally Posted by sheenie2000

bxlefty,

The problem is when the loan is at a variable interest rate. Then life happens to them, say a car accident and they can't work for two months. The interest compounds and a 20K loan turns into 40k which then turns into 80K. This is unreasonable and leads the person to NEVER catching up all because of ONE incident that was out of their control.

Well two months wouldn't make the interest on a 20k loan compound to 40k. So lets be fair. But the idea makes sense.

Also with the private loans, IIRC, they start compounding interest the day you take them out. So a student could feasibly get a loan to start college, and 4 years later the loan has compounded @ 10%. Not cool.

[wheelsup]

Originally Posted by HappyTexan

But that is a choice the student made when they applied for the loan.
Why not do 2 year community college and then 2 years at a state university and have a much much lower loan.

I agree with you but even at $15k in private loans for my wife, the 10% interest was killing her. She didn't make much out of college and it was either pay loans or rent. Or move in with the parents and make $7/hr at a bagel shop.

Not a very good position for graduates to be in.

I'm not saying we should cancel student loans, that is ridiculous, but we certainly do need to reign in the interest rates.

[joyBeing]

Originally Posted by sheenie2000

bxlefty,

The problem is when the loan is at a variable interest rate. Then life happens to them, say a car accident and they can't work for two months. The interest compounds and a 20K loan turns into 40k which then turns into 80K. This is unreasonable and leads the person to NEVER catching up all because of ONE incident that was out of their control.

Sadly, life is not fair. But, you can't let individual circumstances control what is beneficial for majority of people. It's one thing to say college tuition is overinflated and out of control, hence rediculus loans. It's another thing to make people less responsible for their debt. Besides as long as foreign students can pay this tuition, we, in US, are stuck. There are no easy answers, but being responsible is one.