Well, yes, I’m aware… the creation comes from the promise to pay. But the default gets tacked onto the taxpayers, so yes essentially the taxpayer is funding the money creation.
Record Surge in Past-Due Student Loans Adds to US Debt Burden
- Thread starter Dave Hess
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GON
$150 Site Donor 2025
Maybe the universities should guarantee the loans instead of US taxpayers. Universities can guarantee the loans with their endowments.
One problem is that many 18 year olds don't know what they want to do in their career but think it might be in academics, science, medicine, law, education or "something like that". So they go straight into university and take a year of general arts or science. While I was taking first year engineering, my roommate (in first year science) really liked his class in philosophy and made that his major. Needless to say there weren't and still aren't many jobs available for philosophy majors. Some would say he wasted those years at university. He did a variety of things in his life including working in construction and later in his career became a shop teacher. So it all worked out for him.
I took a year off before I started university and knew I needed a degree in an area where there would be jobs. And I liked mechanical things, so - Mechanical Engineering. My career has wandered quite a bit since then but I have a solid first degree in a core area that opens the door to many kinds of future work, not only in engineering. It all worked out well for me too.
Taking a year off before university made me a better student. I recommend it.
I took a year off before I started university and knew I needed a degree in an area where there would be jobs. And I liked mechanical things, so - Mechanical Engineering. My career has wandered quite a bit since then but I have a solid first degree in a core area that opens the door to many kinds of future work, not only in engineering. It all worked out well for me too.
Taking a year off before university made me a better student. I recommend it.
Owen Lucas
$100 Site Donor 2023
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Deleted.
What’s her major ?
Bank of Dad
that's great. I put 3 daughters through private college so far best investment I have made two making big money living independently on there own. My little one she's on her last year I'm so close to it being over.Boston College undergrad and Tufts dental.
I'm not disagreeing with you @ripcord, but the ability to make those calculations/estimates should be taught in high school.
Scott
That would assume people can do arithmetic, and think/plan beyond today.
We attend Stanford, Berkeley and local JCs lectures for free. Life is for learning.
I will post tomorrow's SLAC Rubin Digital Camera lecture in a few minutes.
"The world’s biggest digital camera was built at SLAC, and shipped to the NSF-DOE Vera C. Rubin Observatory in northern Chile last year. This observatory has a goal no less ambitious than to map the entire the southern sky and all of the galaxies out to 10 billion light years from earth."
Yup.
Propflux01
$100 Site Donor 2025
So its better just to make the banks richer? You're gonna pay it anyway through higher interest when the loans are not paid. You already pay for K-12. Would you rather have a dumbed-down society that has no higher education and the resulting social issues that come with that, or spend a bit more on the future of the country?
Propflux01
$100 Site Donor 2025
No, they don't. They come from the banks. It's just loan rules under federal control. This is why you cannot file student loans under bankruptcy. The feds get nothing, the banks profit. Why do you think the schools charge so much now? They can because they know the feds don't control the cost. The schools get their money, and if the student defaults, the banks lose out first. They then write off the loss and the taxpayer gets to pay the interest lost as well.
You do realize that, literally, making hundreds of millions of dollars available out of thin air in order to overpay professors is the very reason that those colleges have gotten so insanely unaffordable? If there was not money hanging off of every idiot who applied to the school, they would actually have to be critical of what programs they provided and which/how many professors they hired, in order to keep the university above water.
Not every kid needs to go to college. Not every $100k degree is ever going to provide a career that justifies the cost of that education.
So, to go back to the Purdue model, not only have they frozen tuition, but there is also no “loan” for the tuition. Depending on your major, there is a set % of your earnings that must be paid back to the school. STEM degrees have lower % and length requirements than liberal arts, because those degrees will actually benefit society.
Not only does that keep kids off of an interest nightmare, it encourages Purdue to throw every possible resource into getting their grads great-paying jobs… because it will increase the funds coming back to the school, but still only be a fixed % of gross income. There really is NO valid defense of the student loan system, unless you’re cheerleading for destroying young lives under a mountain of debt.
There’s plenty of ways around traditional student loans, if the school is actually interested in helping students, rather than just their faculty & old-money alumni boosters.
I'm 42 and still paying on student loans, for an associates degree. 20 year note.
Life happens, and $169 a month doesn't go very far towards paying it down.
Something is wrong with the student loan situation.
My spouse was smart and her employer pays $7500 per year towards her student loans, and agrees to pay them in full within 5 years.
Many people do not have that option.
When I was a kid I used to scrape by to pay the $78 monthly loan on my other school loans.
Out of college I got a big job offer of $43000/year. Kids coming out of school are still getting sub 50k job offers.
Something is wrong with the student loan situation.
I received no grants, no forgiveness.
Life happens, and $169 a month doesn't go very far towards paying it down.
Something is wrong with the student loan situation.
My spouse was smart and her employer pays $7500 per year towards her student loans, and agrees to pay them in full within 5 years.
Many people do not have that option.
When I was a kid I used to scrape by to pay the $78 monthly loan on my other school loans.
Out of college I got a big job offer of $43000/year. Kids coming out of school are still getting sub 50k job offers.
Something is wrong with the student loan situation.
I received no grants, no forgiveness.
Yep. I worked alot of overtime and knocked out the last of my student loans in March of this year. Part of the problem is that people are getting student loans for degrees that could take an exorbitant amount of time to pay back.
Propflux01
$100 Site Donor 2025
Go back and read my first reply about capping the cost.
No, not every kid does. However, for those that don't there is little to no financial assistance for them (Tech schools, etc). It is college we are talking about. The Purdue model would work just as well. But income fluctuates as well.
You last sentence sums alot of it up "if the school is actually interested in helping students". Problem is, they are not. All they care about is the financial gain they get. public as well as private (worse).
This thread was an overall depressing read.
Thanks, BiTOG.
Thanks, BiTOG.
She is taking her masters in Comp Sci. She just trained her first AI model last semester. I hope the AI don't learn how to train themselves, or I spent a lot of money for nothing.
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