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Many of the attorneys at my firm put less money in their bank accounts each month than the paralegals because of their student loans. That's unsustainable and frankly stupid. Without the attorneys, the paralegals, investigators, secretaries, etc..., don't have jobs. People who spend nearly a decade in college create job opportunities for people who don't. Should they really be financially punished for doing so?
Don't forget, the banks get their money at .75% from the feds and then turn around and loan it to students at 8%. Worse still, those loans are federally backed and can't be discharged in bankruptcy. It's a good deal if you're a bank...
The federal government will never 'forgive' student loans.
The whole plan is to tax the middle class via interest payments in the future and they won't give that stealth tax up.
EXACTLY!
All the people on this forum saying that the current system is fine clearly don't understand that this is simply another method devised by the financial sector to shift more wealth towards the top 1%.
Now the entire middle class has to go deep into debt in order to get an education and pay that debt back to the banks at usury interest rates.
All the people on this forum saying that the current system is fine clearly don't understand that this is simply another method devised by the financial sector to shift more wealth towards the top 1%.
Now the entire middle class has to go deep into debt in order to get an education and pay that debt back to the banks at usury interest rates.
They're not paying interest to the banks in most cases. The banks just run the scam. The federal government nationalized the student loans in 2009. The feds are collecting the interest.
Many of the attorneys at my firm put less money in their bank accounts each month than the paralegals because of their student loans. That's unsustainable and frankly stupid. Without the attorneys, the paralegals, investigators, secretaries, etc..., don't have jobs. People who spend nearly a decade in college create job opportunities for people who don't. Should they really be financially punished for doing so?
Just because you spend a lot of time and money getting an education does not mean you are entitled to financial success. The best attorneys are still able to earn an extraordinary living. Average attorneys are in abundant supply. Anyone who's gone to law school in the last 10 years was either fully aware of that fact (and optimistically assumed they'd be one to rise above the fray) or is an idiot.
If enough people considering a law career would honestly assess their future financial prospects (i.e. for many of them, +/- $200,000 to get a law degree will likely pay them, on a net-basis, less than a paralegal) two things would happen that will bring a sustainable equilibrium:
Fewer people would go to law school and the schools would be forced to compete for the diminished pool of potential students with lower tuition costs.
Firms would have to pay more to those who do get a law degree because the supply/demand equation would have changed in the newly-minted attorneys' favor.
Quote:
Don't forget, the banks get their money at .75% from the feds and then turn around and loan it to students at 8%. Worse still, those loans are federally backed and can't be discharged in bankruptcy. It's a good deal if you're a bank...
Considering the historic default rates and the fact that the net amount (after collection costs) of principal recovered on student loans is about $0.80 on the dollar, 8% seems rather reasonable to me.
All the people on this forum saying that the current system is fine clearly don't understand that this is simply another method devised by the financial sector to shift more wealth towards the top 1%.
Now the entire middle class has to go deep into debt in order to get an education and pay that debt back to the banks at usury interest rates.
Agree. Another common denominator of the recent, global economic imbroglio & the student loan fiasco is the FIRE sector involvement.
I don't imagine there'll be a middle class bailout as an result/outcome of either.
As a recent college graduate who is well on their way to repaying his debt, I was curious if we forgive all student loans, (1) what do you do for those who were responsible and paid their debt and (2) how does this stop the problem of crippling debt from happening again.
Is there maybe a compromise? ie could we maybe allow student loan debt to be discharged bankruptcy?
No. No bankruptcy of the forgiving of the whole debt.
However one compromise could be that the repayment could be restructured to be a percentage of their income, like 25% taken directly out of their paychecks until the loan is fully paid off. Sort of like what happens with child support payments.
No. No bankruptcy of the forgiving of the whole debt.
However one compromise could be that the repayment could be restructured to be a percentage of their income, like 25% taken directly out of their paychecks until the loan is fully paid off. Sort of like what happens with child support payments.
I agree, NO forgiving of student loan debt. That would screw people who paid off their loans, and those who paid their way through school by working, etc.
Do you actually think universities prices for tuition would go DOWN?
Several countries in Northern Europe either do not charge or charge a nominal fee for university. Generally speaking, educators in these countries earn more than those with similar educations who did not pursue or qualify for teaching certification. Educators recieve as much respect as MDs. Conversely, US high school and university level educators earn substantially less than those with similar education who pursue non teaching careers. Respect for the profession is highly variable in the US.
It is not possible to reasonably compare and contrast educational systems and costs between countries with substantially different populations.
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