Student loans starting to bite the economy

[Wolf359]

Originally Posted By: StevieC
Originally Posted By: SLO_Town
Our debt-based financial model will collapse one day, and soon.
Scott


The piper must get paid and what goes up must come down... ALWAYS!


When do you think the Dow at 25873 will drop down to 41.22 like it was back in 1929?

 

[StevieC]

The answer: When they stop this game of artificially propping it up! Which is soon by the way things are going because they are running out of ways to do so I think.

 

[supton]

Originally Posted By: Mr Nice
Maybe not with engineering or medical school..... but lots of people work and attend college with a full time load of credits.


I didn't, but I was in engineering. Glad I didn't try to work, although there would have been something said about it, and not having the large amount of debt coming out. Back then (late 90's) I don't think anyone was talking about college debt. It was just being pushed as "you gotta" without a thought to the future.

 

[Mr Nice]

Originally Posted By: supton
Originally Posted By: Mr Nice
Maybe not with engineering or medical school..... but lots of people work and attend college with a full time load of credits.


I didn't, but I was in engineering. Glad I didn't try to work, although there would have been something said about it, and not having the large amount of debt coming out. Back then (late 90's) I don't think anyone was talking about college debt. It was just being pushed as "you gotta" without a thought to the future.


That's why you're making much better money than the guy with a political science degree and working at Starbucks.

 

[555]

Wow! I'm impressed(easy to do). Three pages and the thread isn't locked! There is still hope for humanity!

 

[xBa380]

I graduated 5 years ago with a degree in Mech. Engineering.

I applied for two schools and got half-ride scholarships to both… One was some $30K a semester (private), the other was about $4K a semester (city). With a half ride, it would have been $15K or $2K, plus parking/books/whatever.

My choice was easy… Picked the city school that had a reputable engineering program. Plus, I liked the vibe/school better anyway. After my scholarship ended after 4 years, I was responsible for $4500-5000 a semester.

Spent about seven years in college, due to me doing a lot of (paid) internships/coops and taking semesters off. This allowed me to pay my way through. When I graduated, I paid my final semester bill off in full and walked away with no debt, a full-time job six months before I graduated (one I interned at, they hired me on full time early) and all my experience for various companies made it a cake walk for me professionally to go to new jobs and such. From heavy manufacturing to medical, aerospace, combustion and contracting... All gained through internships, which took priority over me graduating in 4-5 year. Currently working in aerospace on the space program… It doesn’t get much better!

Just the other day I was walking on that campus of the other school I applied for (30K semester one, which is even more now)… Cringing at all the poor kids walking around who will take on huge debt loads just to do to the “better” school. I work alongside plenty of ex-students from those schools, making more money than they do. I feel bad for the student loans they have built up for no benefit. Experience is everything, nobody hardly cares what school you went to in my field, at least. I couldn’t imagine taking on such big debt loads.

 

[Drew99GT]

Originally Posted By: SLO_Town
Student loan debt is no different than any other debt.

While driving to make my mandated visit to my mother-in-law, my wife and I drove through the Livermore, Tracy, Stockton areas of California. For an entire stretch of 75 miles there was nothing but new road, housing, and infrastructure development. I am talking "development" on a massive scale with thousands of workers using hundreds of huge machines.

I told my wife that, "See all that? All that is being built with debt. None of those projects are being paid for with cash".

Read some of Peter Schiff's books. Our debt-based financial model will collapse one day, and soon.

Student loans have nothing to do with it. Home mortgages of auto loans "bite the economy" too.

Scott


You might want to read some competing theories about modern economics and judge for yourself who has a better grasp of how modern economies actually function. We do not have a "debt-based" financial system. We have a monetarily sovereign based financial system; it's not gonna magically crash because of too much government debt. Private and local government debt? Perhaps, but the Federal government will bail the system out if, when it needs it. Always has, always will, and the economy always recovers. Is that a good or bad thing depending on the winners and losers? That's for everyone to decide in the political system we operate in.

But the financial system as a whole perhaps isn't the problem... It's the politics of it all!

https://www.amazon.com/Modern-Money-Theory-Macroeconomics-Sovereign/dp/0230368891

 

[StevieC]

Xba380, my brother did his mechanical engineering here at Waterloo in Ontario. Graduated with Honours and it cost him $20K for all 4 years (Roughly). Then MiT in Boston offered him a scholarship to do his PHD in Mechanical engineering. So he went down to Boston for that, completed it on their dime and now works for himself. Teaches at MiT part time.

I honestly can't believe the tuition fees in the U.S. compared to here. It's pretty nuts.

 

[KrisZ]

"monetarily sovereign" ha, more fancy words to confuze people.
Why do we have to service the debt to print the supposedly sovereign currency? What would happen if we stopped servicing the debt? With what are we repaying the debt, certainly it cannot be with the worthless notes the Federal reserve prints?

 

[CT8]

Originally Posted By: blupupher
Yup, I have a co-worker that just graduated with his Bachelors in Nursing, has over $30,000 in debt because of it.
28 and still living with his parents (but now that he has a nursing job is getting ready to move out).
Still, he should have it paid off pretty quickly since he actually has a degree that is employable with actual income.

I got my BSN and incurred no debt at all (took me a little longer, but still).
The debt [Over $30,000.00 is less than the cost of a new car. How much does a journeyman service tech have invested in tools?

 

[billt460]

Originally Posted By: Drew99GT
You might want to read some competing theories about modern economics and judge for yourself who has a better grasp of how modern economies actually function. We do not have a "debt-based" financial system. We have a monetarily sovereign based financial system; it's not gonna magically crash because of too much government debt. Private and local government debt? Perhaps, but the Federal government will bail the system out if, when it needs it. Always has, always will, and the economy always recovers. Is that a good or bad thing depending on the winners and losers? That's for everyone to decide in the political system we operate in.

But the financial system as a whole perhaps isn't the problem... It's the politics of it all!


This ^^^^^^^^^^^^^^^^^^^^^^^^^^^

You are 100% correct. All I'm waiting for now is someone to come in with the whole, "We need to go back on the gold standard", lunacy.

 

[rshaw125]

Originally Posted By: SLO_Town
Student loan debt is no different than any other debt.

While driving to make my mandated visit to my mother-in-law, my wife and I drove through the Livermore, Tracy, Stockton areas of California. For an entire stretch of 75 miles there was nothing but new road, housing, and infrastructure development. I am talking "development" on a massive scale with thousands of workers using hundreds of huge machines.

I told my wife that, "See all that? All that is being built with debt. None of those projects are being paid for with cash".

Read some of Peter Schiff's books. Our debt-based financial model will collapse one day, and soon.

Student loans have nothing to do with it. Home mortgages of auto loans "bite the economy" too.

Scott


The housing loans were also subsidized by the government. Freddie and Fannie or the VA. The government should never be in the loan business.

 

[JohnnyJohnson]

Its way past time they start pulling degrees and licenses for not paying off loans. That would really get some licensed professionals attention.

 

[StevieC]

Not sure how it is there but here education debt follows you forever, even a bankruptcy won't clear it. They had to do that because there were a ton of folks getting an education and then declaring bankruptcy to pay for it.

Even bankruptcies up here aren't easy. You most go through a consumer proposal first with repayment plan and must show that you are at some sort of hardship even under the easiest payment terms before declaring bankruptcy.

You would think this would make people think twice about borrowing insane amounts but yeah it doesn't... Most Canadians are spending $1.22 for every $1 they bring in. It's sad.

 

[Andrew1972]

I graduated with an engineering degree in 1994 with for a total of $38k including room, board, meals etc. I also walked into a $36k/year job and no requirement of getting more then a 4 year degree.

Fast forward to present at same university and the degree is $100k for above. You start at around $60k now and really should get a grad school degree. So at start you don't even make per year what your degree costs and at a disadvantage. Is an 18 yr to blame for this no entirely? No it is all generations who made or wanted it to happen and subsidizing the loans getting there. Also you old folks collecting pensions/living too long weighing down the costs of running a University.

 

[rshaw125]

End the loans solve the problem.

 

[JohnnyJohnson]

Originally Posted By: rshaw125
End the loans solve the problem.


This and you'll see the cost of a college education drop.

 

[Andrew1972]

Originally Posted By: rshaw125
End the loans solve the problem.


Too simple. Loans worked well in past however ability to get them easily now or larger amounts of money is what changed and not working.

I am surprised this has not pushed by wealthy folks to keep their average/stupid kids at an advantage.

 

[javacontour]

Or have the schools loan THEIR money and provide the guarantees, not the government.

They will be less likely to loan money for degrees that do not have the job market to make the numbers work.

The problem is it is other people's money and not the school's money on the hook.

Originally Posted By: rshaw125
End the loans solve the problem.

 

[userfriendly]

In Canada we have thousands of foreign students supported by their wealthy parents. Call it a back door to immigration, but many stay after graduating.

edit; I'm not qualified to apply for the job I worked 39 years at and retired from. HR! Can't live with them, can't live without them.