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The large amount of outstanding student loan debt is a drag on economic growth for it directly affects the young entering the job market saddled with difficult, and often unmanageable, obligations. It likewise acts as a disincentive to shouldering the additional burdens of marriage, buying a home, and starting a family at the very time when such considerations are the most desirable, and yet rendered impracticable. The promise that a college degree would translate into greater earnings has not been kept in a marketplace where job opportunities have not kept pace with college tuition, and where employers do not value higher education and skilled labor obtained the more cheaply by outsourcing. Even the traditionally high-paying professions are affected. There are just no jobs; and the costs for starting up a private practice are prohibitive. Doctors, lawyers and dentists are going bankrupt with no more prospects than flipping burgers. It is not a good situation, and one that should be addressed on more than one economic level.
My student load debt isn't huge or a big burden on my finances, but I know plenty of people with 3, 4, 5+ times more debt than I do (in my age group). And while they may have decent incomes, the debt is extraordinary.
.
And would this not be their fault for borrowing so much money, going to expensive schools and not working while in school ?
Why do they have 5+ times the debt you have after college ?
Did they think they would never have to pay back the money or not understand basics of keeping debt at a minimum.
Both my sons worked through school, went to state schools, got masters and had none to little debt. We helped with a few basic necessities.
Hilarious
now you are gonna tell us that "The richer a bank gets, the better it is for our economy"?
As if the bank is gonna offer lower interest rates because they made more money this year.
It's not about a bank getting richer, or interest rates. It's that to the economy as a whole it doesn't matter if student A has crushing debt.
1) makes 2k, has 800/month debt payment, spends other 1200 out in the world. The bank relends that 800 back out into the economy where person #2 spends it. 2k out, 2k spent
2) makes 2k, has zero debt, spends 2k out in the economy, 2k out, 2k spent.
It's the same thing.
And it's not about the banks getting richer. If the debt was forgiven the banks would certainly pull all student lending and the next generation would have a heck of a time going to college.
The large amount of outstanding student loan debt is a drag on economic growth for it directly affects the young entering the job market saddled with difficult, and often unmanageable, obligations. It likewise acts as a disincentive to shouldering the additional burdens of marriage, buying a home, and starting a family at the very time when such considerations are the most desirable, and yet rendered impracticable. The promise that a college degree would translate into greater earnings has not been kept in a marketplace where job opportunities have not kept pace with college tuition, and where employers do not value higher education and skilled labor obtained the more cheaply by outsourcing. Even the traditionally high-paying professions are affected. There are just no jobs; and the costs for starting up a private practice are prohibitive. Doctors, lawyers and dentists are going bankrupt with no more prospects than flipping burgers. It is not a good situation, and one that should be addressed on more than one economic level.
Really, Medical Doctors flipping burgers for lack of prospects. Hmm, seems legit.
Both my sons worked through school, went to state schools, got masters and had none to little debt. We helped with a few basic necessities.
As did my nieces, nephews, and godchildren. They did forgo those Cancun Spring Break vacations, and they worked throughout school. They still graduated with a great ranking.
Instead of the boo hoos, those with far in excess of typical college debt (25k) should be doing some critical self-examination as to what they personally did wrong.
And would this not be their fault for borrowing so much money, going to expensive schools and not working while in school ?
Why do they have 5+ times the debt you have after college ?
Did they think they would never have to pay back the money or not understand basics of keeping debt at a minimum.
Both my sons worked through school, went to state schools, got masters and had none to little debt. We helped with a few basic necessities.
I worked through college, went to a state school, but my parents didn't have much help for me after my first year of school. Other people had less help than I did. Your sons were lucky you could contribute to their education. I was on my own and had to figure it out. Lucky for me, I found a scholarship to cover my housing costs during the last 2 years, and my jobs covered most of my other expenses, so the loans were only for tuition. I left school with about 25k debt.
During my school years tuition went up 20%. Over the past 8-10, tuition for our state schools have just about doubled. I had an intern who saw her tuition go up 40% during a two year period. College tuition is increasing far faster than inflation. And so are the rest of the basic expenses.
For many people the alternative of not going to college is much much worse. And they didn't have any parental help available. Summer jbs do not cover tuition anymore any less you can intern as a law associate.
To go to the California schools, tuition and living expenses is about $30k a year for residents.
Don't forget, the people that are running the country could care less about whether kids end up being debt slaves for the rest of their lives. The people of America was stupid enough to twice elect Ronald Reagan twice, and today we are all paying the price.
What happens when all the students don't pay and all the credit card people default and nobody pays the mortgage
Deadbeat nation ? Credit stops and we go cash n carry prices fall to nothing and Guys like me buy 100 houses and the rest starve
Zero impact. The money you pay back to the bank gets relended to others that spend it on the economy (be it immediate, or by paying for another piece of parchment at a spendy school who then pays salaries and those people spend money).
This whole myth of paying back banks retards the growth of the economy is out of control.
Sure your friends life would be better if he had no loans, but the economy only falters if you stop paying your debt, or if that debt is forgiven (the forgiven debt doesn't just disappear like mortgages at the end of monopoly, someone is going to take a loss, and that loss will be passed into the people.
Exactly.There is a movement emanating from the right to discourage parents from sending their children to college, in order to further striate our society and economy into ultra rich and poor.
Walmart workers and Wall Street bankers. Nice.
Everyone knew, oh...25 years ago that college had become a necessity for anyone who desired success.
For most middle class people, that means a financial aid package, some of which will include loans.
People with minimum wage jobs mostly rent or live as home. People with college degrees generally enter the real estate market and become lifelong consumers.
A strong middle class is imperative to the financial vitality of our country.
Don't forget, the people that are running the country could care less about whether kids end up being debt slaves for the rest of their lives. The people of America was stupid enough to twice elect Ronald Reagan twice, and today we are all paying the price.
Massive Personal debt is purely a Personal decision we all make to have or not to have.
Stop trying to pass the blame to Big Govt or others. THE PROBLEM is we fail to take responsibility for our own decisions.
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