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Often tuition is able to be increased because its so easy to get loans which drives enrollment up. Demand for product. If this were healthcare insurance government would fix price or regulate it but the lobby for colleges is strong.
Yet, tuition is still cheaper than the historical norms.
I personally do not think it is. The only people that complain about the loans are the people that don't finish school or ones that can't keep a job after school, or the ones that spend a ridiculous amount of money for a mediocre degree at best. What do they do? They lash out and blame the school. The schools weren't hiding the costs or hiding the fact that it was not giving out jobs down at the student center once you graduate.
So what's changed?
Certainly the "people" you described existed now and existed prior.... they have always been there.
I'm 14 years apart from my younger brother... same state ... a related school system. I studied computer engineering and he studied nursing. Neither are dead end degrees. I can absolutely state without a shadow of a doubt that my education is noticeably cheaper in both tuition and cost of living. He off set the extra cost by staying close to home. I left home and was able to afford rent on an apartment as I was working... a job that probably would no longer would exist giving the current job market (mid 90s companies couldn't find enough computer experienced people.. they were fighting for interns and student co-ops)
Just other purchases? It will prevent people from starting families.
30K in debt will prevent people from starting families? That's equivalent to the price of a Honda Accord and I'm pretty sure I see lots of babies being driven around in those.
If you're talking about those kids who borrowed in excess of 100K for a college degree, I'm OK with people with such poor decision making ability forgoing passing on their genetics.
30K in debt will prevent people from starting families? That's equivalent to the price of a Honda Accord and I'm pretty sure I see lots of babies being driven around in those.
That 30k though has capitalized interest. You can easily pay off a 30k car loan in 6 years. Not the same with student loan debt. The capitalized interest eats up all the money that should be going to principal, if it was similar to a car loan.
If you're talking about those kids who borrowed in excess of 100K for a college degree, I'm OK with people with such poor decision making ability forgoing passing on their genetics.
AAMODT: "So the changes that happen between 18 and 25 are a continuation of the process that starts around puberty, and 18 year olds are about halfway through that process. Their prefrontal cortex is not yet fully developed. That's the part of the brain that helps you to inhibit impulses and to plan and organize your behavior to reach a goal."
That 30k though has capitalized interest. You can easily pay off a 30k car loan in 6 years. Not the same with student loan debt. The capitalized interest eats up all the money that should be going to principal, if it was similar to a car loan.
I know plenty of students who paid off that level of loan in just a few years. They lived cheap with roommates, no car, minimal spending etc. Others that lived large will be paying off loans for a long time. It's all well and good to blame the "system" for taking advantage of clueless 18 year olds, but if you're still that clueless after 4 years in college you clearly didn't get your moneys worth.
AAMODT: "So the changes that happen between 18 and 25 are a continuation of the process that starts around puberty, and 18 year olds are about halfway through that process. Their prefrontal cortex is not yet fully developed. That's the part of the brain that helps you to inhibit impulses and to plan and organize your behavior to reach a goal."
So what's your solution? No student loans for anyone under 25? I think a required class on finances and the true impact of loans would go a long way. It's a shame that many parents are as clueless as their kids about borrowing and can't provide competent advice.
I know plenty of students who paid off that level of loan in just a few years. They lived cheap with roommates, no car, minimal spending etc. Others that lived large will be paying off loans for a long time. It's all well and good to blame the "system" for taking advantage of clueless 18 year olds, but if you're still that clueless after 4 years in college you clearly didn't get your moneys worth.
And some do live frugally and still can't pay it off. They work multiple jobs and can't make ends meet. I know plenty of people in this situation.
Student loan payments are not a one size fits all deal. If someone has federal loans, I encourage them to get on IBR (Income Based Repayment), which is contingent on your income. But many private loan companies simply do not want to work with you or do not offer an IBR type payment. They want you to pay the size of a mortgage payment each month. Only when do you default will a private loan company work with you. That 30k loan could become a 90k loan when all is said and done, and not because of non-payment, but because their payment went to interest.
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