Which is exactly my point, change the federal law that protects this debt and watch how quickly the education costs come down because students will not be able to get hundreds of thousands of loans just by signing a piece of paper.
Record Surge in Past-Due Student Loans Adds to US Debt Burden
- Thread starter Dave Hess
- Start date
but nothing happened really happened.
They dismissed student loans from fraudulent colleges and for teachers or something? I don't recall much.
Well than, dont borrow the money, Right?
This is whythe program should be cancelled. But wait the majority manage to pay their loans and go onto great careers. Maybe set some kind of standard to eliminate those from the program if they dont perform? Cut the taxpayer losses early.
Family member is now a young doctor, 100's of thousands in student loans. Not complaining and will be making hundreds of thousands to pay it back like almost all doctors. Smart choices in how someone borrows and spends. Kids waste their time in college with no goal. Then they are better off going to a trade school OR start in a trade right at the age of 18.
With the coming of AI you might be more secure in a trade job BTW.
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Hyperbole much?
Nobody is suggesting loan forgiveness, definitely not me. Bankruptcy is not forgiveness and carries quite heavy penalties that go along with it.
Yes, yes I know, in your time you walked to school uphill both ways, we’ve all heard that story.
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So remove all bankruptcy laws then?
Student loan forgiveness eligibility (so people stop thinking everyone gets it)
https://studentaid.gov/manage-loans/forgiveness-cancellation
Does not mean the person will be approved if they apply.
- Teachers
- Gov Employees
- Nonprofits
- Medical professionals
- School has closed or misled
- Federal Perkins Loan borrower
- Parent Borrower
- Forgery
- Declared bacnkrupcy
- Death
Does not mean the person will be approved if they apply.
Amen!
dnewton3
Staff member
Let's tone down the rhetoric please.
The discussion has merit, but only if done with civil discourse. It's OK to disagree; it's not OK to bicker.
Otherwise, it gets locked.
The discussion has merit, but only if done with civil discourse. It's OK to disagree; it's not OK to bicker.
Otherwise, it gets locked.
Private loans disagree. As a bank you are loaning money and need to perform due diligence to ensure your borrower can pay it back. Otherwise lender risk is on you.
When I went to school we had to goto a big room to sign up for classes And then go another day to pay your bill and or receive your financial aid checks. This was in the 90's before online signup, etc. Most of the students I saw were receiving checks because their financial aid was more than their bill. Tell me any of this made sense? I'm sure this is still happening.
My two cents is people that go to college and go into fields this country needs, doctors, nurses, engineers, scientists, etc should have their loans paid by the government. Most of these fields require 6 years of schooling and we need these people in our daily life in America. We don’t need a person with an art history degree that works as a barista now.
During COVID my son was in a trade school to become an electrician. He never qualified for any aid so he and I paid most of it and he ended up with about $5K in loans when he was done. In talking with the other students he learned that he was the only one in the class that was actually paying for his education. The rest were getting grant money or whatever.
The government gave schools money during COVID for some reason. His school gave a portion of the money back as a credit to students. The day they got their payments they were all discussing how much they got. I will let you guess who got the least amount by more than half...
The government gave schools money during COVID for some reason. His school gave a portion of the money back as a credit to students. The day they got their payments they were all discussing how much they got. I will let you guess who got the least amount by more than half...
I dunno--we might not need history majors, but why should people get free schooling? Don't those careers pay enough for people to figure out how to juggle loans and life? Can't people figure ROI out on their own?
Complex situation, but one has to ask what was the role of the parents in all this?
Life is full of grifters, scammers, bad deals, and bad decisions. Many at age 18 haven't fully realized this yet. (Some at age 40 haven't either)
Not saying that educational debt is a bad idea. In many cases it's the only option. But, you need to have a plan, and understand the financial implications and consequences.
Life is full of grifters, scammers, bad deals, and bad decisions. Many at age 18 haven't fully realized this yet. (Some at age 40 haven't either)
Not saying that educational debt is a bad idea. In many cases it's the only option. But, you need to have a plan, and understand the financial implications and consequences.
The government has no money. It's taxpayer money, I dont want to fund anyones college. I have my own kids that I took care of. Furthermore the doctor shortage was created by the government in the first place. Factual information on this but I am posting this one source.
(please understand this is NOT bickering, just friendly discussion!)
We dont need government doing anything, supply and demand works fine, except government put a hold on new doctors. We are now starting to catch up and someday will be a surplus (think, AI, older people dying off etc)
This was the cause. Im willing to bet 85% of the population is unaware of this:
Source
https://en.wikipedia.org/wiki/Physician_shortage_in_the_United_States
Think about that. Due to the moratorium ONLY 3 new medical schools were built in TWENTY FIVE years.
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BINGO! They were charging +7% when borrowing money was free. I’m older and my student loans are at 0.625%. People who graduated a few years after me are at 9%. I know someone who pays $33k per year IN INTEREST and I pay about $300 per year. Keep the loans, peg the interest at just enough to cover overhead.
So, if a university gives you a loan that they are not supposed to you the borrower is responsible for their fraud? University's do that all the time to boost their $$$.
Monkey see, monkey do. I'm not stating this as a means of letting anyone off the hook--but if the parents are clueless about money, then why would the kids be better?
Ouch. I know I'm looking at something like 9% on my kid's loan at the moment. To me that seems ridiculous--thing is, it's an unsecured loan. It carries risk, right? Shouldn't it carry a higher APR as a result?
Or does this go back to the issue of, since this loan cannot be canceled in bankruptcy, there is no (or very little) risk for the fed? If so... then yeah, it's stupid. Bring back reasonable rates.
[I'm a bit miffed as our first loan had a 4% fee. I'm not shocked at that as much as... at 9% interest they are more than making bank here! Should be like $100 for paperwork, if that, since it's all automated. If the wife makes enough over the next year I'm hoping to avoid future loans, between the two it seems unreasonable to me.]
Daughter is starting this month. We toured nearly all of the public universities in VA. These colleges have money they don't know what to do with. Virginia Tech has a project going on where they are covering, already concrete buildings, in hokie stones. These are not new buildings, they were already brick or block but every building on the campus is getting covered in a hokie stone exterior. I can't count the number of student tour guides we had who were in a useless degree path.
Student loans create false demand and drive up the price for everyone. If they weren't federally backed no bank would remotely consider loaning a kid, without a certain future income, that kind of money, they would be out of business next week.
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