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The whole system is rigged by the 0.1%. Most millennials have massive debt because of the high price of a college education. The progeny of the 0.1% have no such worries and are in a position to prosper with ease after college.
I "moved out" at 18, but that was to go to college. While in college, though, I lived at home for a total of 3-4 months during the summer, etc. During law school, I was completely on my own. I ended up buying my first condo at 27. Having written that, I know how much of an anomaly I am, even within my own circle of friends. And all in my circle are fully employed; many are simply saving up to get/buy their own places.
The whole system is rigged by the 0.1%. Most millennials have massive debt because of the high price of a college education. The progeny of the 0.1% have no such worries and are in a position to prosper with ease after college.
I have high debt, mainly from law school, but I'm on an income based repayment plan, which means I'm only making basic monthly payments. I only write this to say that (if you have federal loans), there are very manageable repayment plans and that one's debt doesn't have to be crushing. And if you're employed for the public service (doesn't have to be in the formal public sector), you can sign up for the public service loan forgiveness program, which puts you on a 10 year repayment plan (making minimum monthly payments based on income), after which all unpaid debt is forgiven.
I have high debt, mainly from law school, but I'm on an income based repayment plan, which means I'm only making basic monthly payments. I only write this to say that (if you have federal loans), there are very manageable repayment plans and that one's debt doesn't have to be crushing. And if you're employed for the public service (doesn't have to be in the formal public sector), you can sign up for the public service loan forgiveness program, which puts you on a 10 year repayment plan (making minimum monthly payments based on income), after which all unpaid debt is forgiven.
That Tax Bomb is going to hurt!
You'll be paying income tax on the forgiven portion.
As for Public Service, as we're seeing, a lot of that is being cut and is very competitive for college grads.
The whole system is rigged by the 0.1%. Most millennials have massive debt because of the high price of a college education. The progeny of the 0.1% have no such worries and are in a position to prosper with ease after college.
Yeah they're dummies who fell hook line and sinker for college right after highschool.
I'm one that didn't
I wasn't a "good student" in highschool. I worked after school in various skilled trades both on and off the books. (Once was for getting caught mud bogging on a farm, worked on it to pay off damages, that's a long story)
Used to fix and sell cars for a profit too.
Took 2 years before going to college (community college 2200 a semester why pay 40k+ a year for school?) worked like a dog paid cash for tuition up front, bought a fixer upper house for 50k.
Got the sellers to agree to holding the mortgage (why go through a bank and pay interest on a 15 year note and blow the FHA/203k on a small lake house?)
Went to school full time, worked 2nd/3rd shift and worked on the house on weekends.
Paid the house off in full in 5 years, along with building the roof from trusses to shingles, converted it from a glass fuse panel to a circuit breaker box with upgraded service. Swapped the inefficient propane water heater for a fancy programmable electric one. Removed the heating oil boiler and tank made up my own duct work and had propane forced hot air. Propane was cheaper. Already had a couple 300 pound tanks for the stove and hot water heater... Was just a matter of flaring and routing more copper. Not rocket science.
Built a front porch which somehow drastically raised the home value and the town grossly over assessed it... Fought with the town tooth and nail and let the rest of the outside go to shambles.
Borrowed friends equipment and put in a new septic system; tank and distribution box. (Dang tree roots)
Exchanged use of a mini excavator for fixing a couple ford dump trucks.
Called a Mason friend up used his equipment. Bought a couple slabs of granite at Grossmans bargain outlet and made the kitchen and bathroom counter tops and back splashes.
Didn't have much of a social life. Put racing on hold for those 5 years.
The problems we face in the job market, and it's overlooked is most of my generation have an expectation either drilled into our heads in college or a false reality provided, that upon graduating they're going to make 6 figures or close to it... Without years of experience.
Internships pay intern rates... Instead of going to flip burgers or sell movie tickets, look for apprenticeships in a skilled trade... Network with contractors plumbers electricians masons mechanics. Put down the remote and keyboard... Don't worry about finding "the one" my generation is worried about mostly materialistic things! but don't do what it takes to get those things...
I started out for summer work at 15 hauling shingles up a ladder. Paid attention, asked questions, moved up from being a clean up crew and shingle hauler to cutting and laying plywood and building trusses for new construction homes in the area. At those sites, I would talk with plumbers/HVAC guys, masons and electricians that were there, got their number and worked with them as well...there are opportunities out there aside from flipping burgers and selling movie tickets. And it's all about how well you can market yourself.
If you have skills you brag and follow through, have the right people on your side who will vouch for you, even offer to show those skills off for free to take a chance on you. Don't worry about a relationship and kids and the little house and white picket fence. Worry about where you want to be in 20-30 years...
Most jobs want at least an associates, and 3-5 years relative experience but if you have skills you brag and show them off you will go places.
Only privileges I had was my parents owning a camp ground, rental houses, and had a restaurant in that town as well. As long as I hustled for them with grounds maintenance plumbing electrical and equipment repairs I was good. Didn't have rent to pay or cars paid for by mommy and daddy. Had a 40x70 garage with a Mohawk lift where I built race cars and hot rods.
I'm not exactly a people person that is customer service orientated I refused that opportunity. Ran the campground while they were away wasn't my cup of tea.
Its a system out there my theory is older generations placing stricter requirements and higher emphasis on a college degree over dexterity. Couple that with amount of relative experience which is understandable... Who would want a wet behind the ears pimple faced kid constructing a house, or representing your case before a judge, or filing your taxes, or performing surgery on you...starts making older generations more desirable in the work place and less competitive for them, as an employer would you hire someone who is at an intern level or a seasoned veteran of the field? My guess is the seasoned person who knows the trade and has the skills 9 times out of 10. I'm a diesel mechanic and I see UTI grads all the time with very little hands on experience get in over their head big time. They lack the experience and come with a know it all attitude but can't fix a sand which... But the ones who tinkered with cars years prior to getting into college who asked questions and paid attention to the seasoned guys then got into school for that trade, with a little refinement they go places.
You'll be paying income tax on the forgiven portion.
As for Public Service, as we're seeing, a lot of that is being cut and is very competitive for college grads.
Even if the tax goes through (while the balance of most federal loans forgiven after 25-30 years of payments are taxable under existing IRS rules, I'm not sure that the public service loan forgiveness program has been added to that policy. It hadn't as of 2015: https://studentloanhero.com/featured...n-forgiveness/), I'd still be saving a whole lot of money.
As far as public service goes, a lot is being cut, but there are still tons of job opportunities out there in the public service field (from military to not-for-profits to most other non-governmental organization and government jobs alike). Of course, there's an income limit when signing up for the program.
You'll be paying income tax on the forgiven portion.
As for Public Service, as we're seeing, a lot of that is being cut and is very competitive for college grads.
This is actually true, I'm somewhat familiar with taxes as part of what I do, and there's no "silver bullet" for millennials hoping for student loan forgiveness
Using an overly simplistic example:
Let's say you charge $10,000 to a credit card and never pay it back. Eventually, should the creditor write it off or "forgive" the debt, that $10,000 can be seen as "income" that you would owe taxes on. Doesn't always happen, but it can happen, and that's the point.
Be careful what you wish for I can see a possible future where a Bernie Sanders type gets into office and "forgives" all student loans with the stroke of a pen. Can you imagine a $9/hour liberal Starbucks barista suddenly getting a tax bill over $100-$300k in "forgiven" student loan debt? Ouch!
This is actually true, I'm somewhat familiar with taxes as part of what I do, and there's no "silver bullet" for millennials hoping for student loan forgiveness
Using an overly simplistic example:
Let's say you charge $10,000 to a credit card and never pay it back. Eventually, should the creditor write it off or "forgive" the debt, that $10,000 can be seen as "income" that you would owe taxes on. Doesn't always happen, but it can happen, and that's the point.
Be careful what you wish for I can see a possible future where a Bernie Sanders type gets into office and "forgives" all student loans with the stroke of a pen. Can you imagine a $9/hour liberal Starbucks barista suddenly getting a tax bill over $100-$300k in "forgiven" student loan debt? Ouch!
Its actually not true, at least not for the Public Service Loan Forgiveness Program. For general loan forgiveness, what you write is absolutely true. But the poster was responding to my comment that applied specifically to the PSLF program. Currently, there is no tax penalty for loans forgiven under the PSLF program, though some in Congress have tried to tax such. Who knows what will happen in the future, though.
Its actually not true, at least not for the Public Service Loan Forgiveness Program. For general loan forgiveness, what you write is absolutely true. But the poster was responding to my comment that applied specifically to the PSLF program. Currently, there is no tax penalty for loans forgiven under the PSLF program, though some in Congress have tried to tax such. Who knows what will happen in the future, though.
We're not talking about the PSLF we're talking about IBR for those who qualify. You get tax bombed.
If you take 100k in student loans, pay 25k through IBR, that 75k remaining comes back later as Income. See I.R.C. § 61(a)(12).
I was responding to your comment about IBR and PSLF not as one but two different trains of thought, thats why I used the phrase "As for Public Service . . ."
Maybe I could have been clearer, but nonetheless we actually agree, but what you are describing is a carrot for a few, the rest of students either pay the loan or get tax bombed.
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