YOU take the loan out....YOU pay it back................simple....
Record Surge in Past-Due Student Loans Adds to US Debt Burden
- Thread starter Dave Hess
- Start date
What needs to happen is government backed loans should require some sort of plan to repay that begins on day one. Too many students borrow and then defer payments until six month after graduation so oodles of “kids” are borrowing and then remaining in a part time student status, racking up more debt, just so they don’t have to make loan payments. Then, by the time they are 26 and about to get kicked off their parents’ health insurance, they finally seek employment. By that time, their $60K loan has ballooned to $100K plus and their minimum payments do nothing for the rising principle.
Also, loans should only be given out for fields that will actually recoup the investment.
Also, loans should only be given out for fields that will actually recoup the investment.
All college loans have a criminal loan shark style interest schedule that even after 10 years the principal is hardly touched. No, the government shouldn’t forgive these loans however there should be some corrective action forced on the lenders to be reasonable. Universities giving away free tuition to foreign students when in-state students are required to pay ridiculous tuition costs is also criminal.
Universities should be co-signers on all student loans.
I'd bet that would change their acceptance criteria and course offerings.
I'd bet that would change their acceptance criteria and course offerings.
No, it’s not that simple. If it was that simple, you should be able to default on it and declare bankruptcy, just like with any other debt, but you cannot and student loans carry some of the highest interest rates too, all backed by Uncle Sam and are guaranteed to never go away.
Talk about the banker lobby wining it big on this one, all in the name of education and “helping” young people.
O yes it is.....You take the loan out you pay it back....NOT other tax payers....
Then you have to apply the same logic to corporations, credit card dept, mortgages and our own government that borrows and doesn’t pay off the debt.
You have some really selective logic here.
Edit:
I never said it’s the tax payers that should be paying off student dept, not sure where you got that from.
I said it should be able to go through the normal bankruptcy process, just like any other debt.
No I dont... Dont take a loan out and expect others to pay it for you....At 71 I guess I was brought up different...
wemay
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Just a drop in the 4.5 trillion-dollar deficit bucket.
Don't pay attention to the right hand, look, LOOK over here. The left hand is where it's at.
Don't pay attention to the right hand, look, LOOK over here. The left hand is where it's at.
Complete macro view - directed at no individual.
The federal government took over student loans in 2010. Given there was absolutely no discretion to the loans, they would lend a 18 year old massive amounts of money for a degree that would never pay out, even if they got a job. The Universities figured this out (coordinated?) and increased costs massively.
This of course raised the price for everyone, including those that pay themselves.
US federal government now borrows more money every year than everyone else in the USA combined. Let that sink in. Who is pounding the table saying they have to pay their debt back? No one.
We have a young population who is saddled with student loan debt. That means that they won't be buying houses, cars and other things that the economy relies on to grow. BITOG will say good - they don't need them - which is true. However our entire house of cards economy has been built for 50 years on buying things no one needs.
You can beat on the kids, and they did take the loan and should pay it back, but there is a lot more to the story. Is it the crack addict or dealer? Both I say.
No, I have no solution either, other than to cut federal student loans so we don't create yet another generation with the same problem.
The federal government took over student loans in 2010. Given there was absolutely no discretion to the loans, they would lend a 18 year old massive amounts of money for a degree that would never pay out, even if they got a job. The Universities figured this out (coordinated?) and increased costs massively.
This of course raised the price for everyone, including those that pay themselves.
US federal government now borrows more money every year than everyone else in the USA combined. Let that sink in. Who is pounding the table saying they have to pay their debt back? No one.
We have a young population who is saddled with student loan debt. That means that they won't be buying houses, cars and other things that the economy relies on to grow. BITOG will say good - they don't need them - which is true. However our entire house of cards economy has been built for 50 years on buying things no one needs.
You can beat on the kids, and they did take the loan and should pay it back, but there is a lot more to the story. Is it the crack addict or dealer? Both I say.
No, I have no solution either, other than to cut federal student loans so we don't create yet another generation with the same problem.
I’m pretty sure the lending and bankruptcy laws were the same during the time you were brought up. But I do know boomers like to pat themselves on the back quite a lot.
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The solution is quite simple, the dept can go through the bankruptcy.
You cannot discharge student loan debt through bankruptcy. Federal law - no judge can throw the debt out. There are some really extreme cases - like total disability or such, but for the most part it can't.
Let that sink in. Every other kind of debt can be discharged in bankruptcy - even delinquent income tax.
So one more example of no equal protections under the law - aka special rules for special folks.
Which is absolutely and completely egregious and just shows how ---backwards this country is on who gets special treatment.
Yes it is that simple. It's not like any debt. You being extended a loan with no credit check and no job. You understand at the time you take it you have to pay it back. Simple stuff. Excuses are why the system is broken. Many now think that they can get away with not paying what they borrowed. Sickening the way some people think. The best answer is cancel the program, let them figure out how to do something on their own.
Welcome to the real world. If one can not accept those terms, go borrow the money someplace else or go to a completely affordable trade school or get a good paying job in the automotive industry and many others without college which I am POSITIVE make more money then many graduates. Im not paying for your college. That is the problem here, people forget there is no such thing as government money. The government took money from my paycheck and all other Americans and lent it to college kids because they want to go to college. No questions asked.
Well guess what? My fellow Americans and I need to be paid back with the money that the government took from me.
My own daughter worked through college, had a fair share of loans. Got a job and started working away from home part time 3 days before the first year of college started near the university. In her last year she worked part time in her field of study. Graduated and started full time work in the field she studied (and previously also worked part time when going to college) within a month of graduating.
Using amortization sheets not only paid her loans on time but doubled up (with our contribution of 50% towards whatever extra principle that she doubled up every month) and was debt free in 5 years.
During that time she was driving an old ratty Pontiac Grand Am that was running fine, used hand me down cell phones and we paid her service during college. You can imagine how she felt initially once she paid off her loans, all of a sudden they started talking about "loan forgiveness"
Oh wait!!! Spring break? Winter recess? Summers? She worked near the university (or near our home) while many went on their spring breaks. For summer, she worked locally at a Texas Roadhouse near our home. Very proud of what she achieved compared to some of her friends as we were in an affluent area.
This year she just bought her first home on her own.
(ps honorable mention, my son, wasnt college material so he didnt pretend to want to go to college, a hard worker, held many jobs, sometimes one full time and one part time in the health field. Today I am sure he makes more money than many college grads working for BMW. Just sold his first home, 2 kids and stay at home mom and they just bought a new 5 bedroom home since the other was getting small for the growing family.
I dont think my kids are unique and I hate hearing that the system is unfair. This is the best country in the world to "make it" if you work for it. The excuses in social media are making many young people and their parents think doing nothing with your life and life is unfair is the majority. Nothing could be further from the truth. Just look at all the young families and people living in homes enjoying life.
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There was talk under our last President about forgiving student loan debt, not to mention payment deferrals due to COVID. My son stopped paying, hoping for debt canceling; why pay when the government isn't requiring you to? My kid will pay off his obligation, of course. My point is just that the system was unclear for several years.
Agreed.
borrowed ~$49,500
Paid off ~$69,500 in my first year of earning right out of college.
I would tell my younger self to never get married because for myself, I never ever needed to borrow any money of any sort.
I can have a decent amount of savings earning even $24,000 yearly, done that many times while in college, have always been good with money.
That drove my daughter nuts. When this started happening she just finished paying off her student loans 5 years early. She was so angry.
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I couldn't agree more, all the excuses are for people who don't know how the world works financially.
I can't stand excuses, if you borrowed, you need to pay it back, no ifs and buts.
It is that simple...and if if you think it is not that simple, you are the problem, you are the one who made a bad decision.
I made a bad decision to get student loans, but I paid it off without a second thought.
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