The Average Student Loan Debt is $29,000; That's a Car Payment, Why Should We Be Concerned?
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People don't generally buy new cars at the beginning of their lives. Why? Because they can't afford it. They don't buy new cars....because at that point in their life the numbers are not in fact manageable.
Thats kind of the point of why 22 year olds dont generally buy new cars.
As for deferments, payments, etc....yeah great...so over time you pay MORE. Its really designed to siphon away a persons ability to grow wealth at the very start when its the most critical.
You missed the point. This thread is not about new college grads going out and buying a new car.
$29,000 is the average and there are people with MUCH more.
The problem is the way our culture views college. We tell our kids "Go to college! You have to go or you'll grow up to be a bum loser. Pick a major, any major, it doesn't matter, you'll figure out how to pay it off somehow."
If an 18 year-old takes a loan for a $29,000 car, people will say he's an idiot and has no financial sense. If he gets into $29,000 of debt to go to college for a worthless degree, he's bettering himself!
Our culture has it right then, better to invest $29K on yourself getting a degree than buying a new car. I'm not unsympathetic to the fact that college tuition has risen faster than cost of living but not sympathetic to people that did get worthless degrees from private universities and ran up huge debts partying for 5 years. I, for example, worked during the school year and worked over 80 hours per week in the summer, lived as a miser, all to keep from owing a big pile when I finished.
People don't generally buy new cars at the beginning of their lives. Why? Because they can't afford it. They don't buy new cars....because at that point in their life the numbers are not in fact manageable.
Thats kind of the point of why 22 year olds dont generally buy new cars.
As for deferments, payments, etc....yeah great...so over time you pay MORE. Its really designed to siphon away a persons ability to grow wealth at the very start when its the most critical.
IDK, when I graduated, nearly everyone DID in fact by new cars. It was the point in life where, for the first time, we had decent incomes and few other major financial commencements. No family to support, no house payments. Time to treat ourselves. Of course we were engineering grads, not art history, but that's another story.
The real issue we're dealing with now is the GREED of the education industry. Education rates are rising far faster than inflation...while the quality of education is not.
IDK, when I graduated, nearly everyone DID in fact by new cars. It was the point in life where, for the first time, we had decent incomes and few other major financial commencements. No family to support, no house payments. Time to treat ourselves. Of course we were engineering grads, not art history, but that's another story.
The real issue we're dealing with now is the GREED of the education industry. Education rates are rising far faster than inflation...while the quality of education is not.
I think somewhat floated you some bad information as to what is causing the increases.
The main reason the costs have sky-rocketed is that the states have cut funding to colleges which have caused the price the consumer sees to jump.
There are many good articles out there on this fact, here is one.
I don't know anyone who can afford to buy a brand new $30,000 car fresh out of school.
What do you think the bank is going to say when they find out you as a recent college grad are already neck deep in student loan debt with 29 Gs or more to pay off? You think they're just going to lend you another 30 grand to buy a nice new car out of the goodness of their hearts? Yeah right keep dreaming.
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