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The average student loan debt in America is $29,000. The average new car price in America is $31,000.
People finance new cars all the time, including new college grads. Is there any particular reason why any of us should be concerned that the average student will be paying the equivalent of a new car payment in monthly student loans?
Most people pay their cars off in 5-7 years. I see no reason why student debt should be considered a "crisis" when in reality that debt can be paid off in a few short years, just like the car these folks will inevitably buy and pay off lest it be repossessed.
I just don't see student debt as a "crisis." These numbers are manageable.
I never had that much student loan debt, I have never paid that much for a vehicle nor financed one for that length of time and the last few venhicles we bought we paid cash for.
We are closing on a home on one acre of ground in a couple weeks that we bought for $31,000.00 and no financing.
Anyone who chooses that much debt without the slightest idea how they are going to pay it off is digging their own financial grave.
The average student loan debt in America is $29,000. The average new car price in America is $31,000.
People finance new cars all the time, including new college grads. Is there any particular reason why any of us should be concerned that the average student will be paying the equivalent of a new car payment in monthly student loans?
Most people pay their cars off in 5-7 years. I see no reason why student debt should be considered a "crisis" when in reality that debt can be paid off in a few short years, just like the car these folks will inevitably buy and pay off lest it be repossessed.
I just don't see student debt as a "crisis." These numbers are manageable.
Your link does not work for me, but I am going to assume this is ALL student loan debt. Which would include CC's, Junior Colleges, tech schools, drop outs, etc. My student loans, at a cheap school by most standards, is well over that. For one full time semester, when counting books, you are looking at around $5,000 for lower level courses, and slightly more for upper level courses or online courses. That is around $10,000 a year, for 4 years. Which for those who aren't too good at math, is $40,000 minimum. Coming from a lower/middle class family, loans were the only way I could go to college. I had a small scholarship when I lived in Tennessee, but lost it when I moved to Alabama. It saved me about $3,500 over the 4 semesters it was available to me. My student loans, after interest and everything, amounts to almost $50,000.
My wife and I do not live some high end lifestyle. We save all we can, and pay off what we have. As of right now though, my wife can not work due to a seizure issue she has, and we have a 3 year old child. Which leads to lots of medical bills, as well as the cost a raising a child. Try explaining to someone in my position, or a similar one, how paying off over $50,000 in debt can be done "in a few short years".
I'm just saying, maybe you should look at things from different points of view.
Last edited by southernbored; 07-30-2015 at 09:51 AM..
Reason: clarification
And yet nobody seems to wonder what's happening to the economy as a whole where an entire generation (the largest in fact) of consumers has its purchasing power diminished for limited gain of student loan banks and servicing loan payments.
And in a consumer economy, no less!
Makes you wonder what the economy could actually look like right now if those students could continue to buy the fancy phones AND have money freed up to invest in the stock market, purchase more goods and homes.
But nah, I guess as the much more limited number of bankers (and the government, of course) makes money off these loans it's all good.
If you can't afford it (or your parents can't) it's absolutely possible to get a 4 year college degree without emerging with $$$ in loans.
Going away to school for 4 years is not a necessity. You could do two years at a community college (VERY affordable) and then transfer to a local 4 year - or then move away to complete your last 2 years.
AP credits in high school can also give you class credit. Lots of schools/states offer dual credit classes - I know some kids who have graduated high school and have almost completed an associates degree.
Kids with top GPAs/test scores/ECs can get lots of aid at the nation's top privates - most of them will meet all of a student's demonstrated financial aid without loans.
Kids with lesser GPAs/test scores/ECs can "undershoot" and still receive LOTS of merit aid from schools.
And not everyone is built to get a 4 year degree. There are LOTS of opportunities in traditional blue collar careers that earn good salaries. People need to stop turning up their noses at them - especially when there are several fields that are hurting (or will be soon) for qualified employees.
If someone is stupid enough to exit with a 4 year liberal arts degree, no concrete career plan and tens of thousands of dollars in loans that they can't pay for, they deserve to live like paupers. Stupid is as stupid does.
as you stated that is the the Average student loan debt . I have probably 3-4 Xs that as will many who are just exiting college within the last 10 years or so.
That is not longer a car payment that is a mortgage payment.
Do you feel yourself and others who have taken out these loans should be responsible for them?
The average student loan debt in America is $29,000. The average new car price in America is $31,000.
People finance new cars all the time, including new college grads. Is there any particular reason why any of us should be concerned that the average student will be paying the equivalent of a new car payment in monthly student loans?
Most people pay their cars off in 5-7 years. I see no reason why student debt should be considered a "crisis" when in reality that debt can be paid off in a few short years, just like the car these folks will inevitably buy and pay off lest it be repossessed.
I just don't see student debt as a "crisis." These numbers are manageable.
The difference is people who take out a car loan and are paying off that loan in 5-7 years are probably people who already have good paying jobs to do so. Kids getting stuck with the student loan debt are probably kids who can't find a good paying job right away and are working in walmart or starbucks.
The average student loan debt in America is $29,000. The average new car price in America is $31,000.
People finance new cars all the time, including new college grads. Is there any particular reason why any of us should be concerned that the average student will be paying the equivalent of a new car payment in monthly student loans?
Most people pay their cars off in 5-7 years. I see no reason why student debt should be considered a "crisis" when in reality that debt can be paid off in a few short years, just like the car these folks will inevitably buy and pay off lest it be repossessed.
I just don't see student debt as a "crisis." These numbers are manageable.
I believe student loans should be made by the Government at base interest rates and collected as a fixed (say 5 to 10%) increase of the debtors income tax for the rest of their life. Those that borrow little money or do not get "well" paying jobs, like old age home consolers providing very important services, will pay relatively less for their educations. the other end of the spectrum would be the finance/computer science/business major that makes billions. He would pay a lot more because his education was worth a lot more.
We should be concerned, because many of these kids are getting their degrees in "Social Justice" and end up being a barista at Starbucks and can't pay off their loan as they have other financial priorities like buying the latest iPhone.
Their priorities are not social justice?
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