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In September, people who owe money for college will have to begin making payments on student loans once again. In looking at what that impact might look like, I'm having a hard time finding numbers that make sense. One suggested 78% were in repayment currently, but the largest balances were in the over 62 crowd.
Anyone have data or thoughts to share on what this impact will be?
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,075 posts, read 7,515,583 times
Reputation: 9798
Quote:
Originally Posted by artillery77
In September, people who owe money for college will have to begin making payments on student loans once again. In looking at what that impact might look like, I'm having a hard time finding numbers that make sense. One suggested 78% were in repayment currently, but the largest balances were in the over 62 crowd.
Anyone have data or thoughts to share on what this impact will be?
Our consolidated, PLUS loan will amortize 10/2029, @ age 82 (owner)(only 1 person can be the owner). Undecided if we will pay off balance sooner, but doubtful since the rate is low.
JMO, for some borrowers, the "loans" is just another form of welfare with the hope that some will use the loans as a way to get out of poverty.
JMO, for some borrowers, it was way to keep students in school and not in the a depressed economy (2007-2010).
JMO, Congress changed the rules too many times. Encouraged for-profit schools, and the lending process and funds was privatize and reimbursed by DOE, AND the Government guaranteeing the principal and interest.
YMMV
Last edited by leastprime; 08-14-2023 at 01:01 AM..
Wow, it really just blows my mind on how much is owed by whom. I guess the Parent portion of the loans is what's causing some of the old people debt....or going back to school. It seems like most have been paying even through the deferral though. I was reading somewhere that almost nobody was repaying their loans and this would essentially restart. Thanks for the links leastprime.
In September, people who owe money for college will have to begin making payments on student loans once again. In looking at what that impact might look like, I'm having a hard time finding numbers that make sense. One suggested 78% were in repayment currently, but the largest balances were in the over 62 crowd.
Anyone have data or thoughts to share on what this impact will be?
Location: Was Midvalley Oregon; Now Eastside Seattle area
13,075 posts, read 7,515,583 times
Reputation: 9798
Quote:
Originally Posted by artillery77
Wow, it really just blows my mind on how much is owed by whom. I guess the Parent portion of the loans is what's causing some of the old people debt....or going back to school. It seems like most have been paying even through the deferral though. I was reading somewhere that almost nobody was repaying their loans and this would essentially restart. Thanks for the links leastprime.
The Problem is gi-gormous. Multilayered and faceted social-economic with additional factors of demographic change affecting providers and students.
The impact on individual borrowers will be they will have to buckle up and repay what they owe. Likely no impact on overall economy.
Really? So an individual having to pay hundreds or thousands a month that they previously could spend on other goods and services will have NO impact on the economy?
I think it's going to drain the pool of liquidity and finally achieve what the Fed has been trying to do with interest rates.
Quote:
Originally Posted by skeddy
Plenty of part time jobs available for those who struggle with paying back money they owe. Many people have financial challenges from 20-40.
Absolutely. I screwed off in my 20s, went "uh oh!" at 30 and spend the next decade building a career and a solid financial house. Now approaching 50 in the best financial shape of my life. It's also a great time to have a low skilled part time job, with entry level wages up so much. I did that in my early 30's to catch up, for half the wages that are being paid now.
Quote:
Originally Posted by artillery77
Wow, it really just blows my mind on how much is owed by whom. I guess the Parent portion of the loans is what's causing some of the old people debt....or going back to school. It seems like most have been paying even through the deferral though. I was reading somewhere that almost nobody was repaying their loans and this would essentially restart. Thanks for the links leastprime.
I do see a common thread in the "woe is me" student loan articles that get churned out on financial sites, and that is people going back to school in their 50's and taking out student loans and actually thinking it's going to help them financially. NOPE. Statistically, college degree holders make more money, but these kids have a 25 year head start on you, and age discrimination is totally a thing. Taking out student loans in middle age is one of the DUBMEST things you can do.
It's also a great time to build a career without a degree since there is such a labor imbalance. 10 years ago my company was all about the degree. Now, they're throwing money at anyone who demonstrates intelligence, degree or not.
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