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I strongly believe that lower cost vocational education with group housing for 18-23 year olds is part of a solution to this problem. You don't need the full college experience, but as the article mentions, getting away from home is a part of it for most.
> I strongly believe that lower cost vocational education with group housing for 18-23 year olds is part of a solution to this problem. In other words, the Army.
> Meanwhile, some people are more than happy to spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year > A lot of that has to do with what Goldfarb likes to call the narrative—one that convinced kids that the only route to middle-class respectability was to get a college degree and that suggested failing to do so meant having failed at the American dream of upward mobility. To…
Earlier quoted context omitted.
The way it would burst is through a naive political change that permits e.g. the mass (and simultaneous) discharging of debt.
Student debt, or all debt? All debt won't happen, because it will destroy a lot of assets - like pension funds. But student debt... that could happen if it became clear that much of it was uncollectable because the kids didn't have the money, and weren't ever going to have the money. We're not there, yet, but we do seem to be heading that way. Alternatively, student debt could be discharged through political means if…
Student debt, pardon me. Allowing for limited discharge in special circumstances or general discharge in broader circumstances. The first could happen through the courts. The latter probably needs legislation.
> Meanwhile, some people are more than happy to spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year > A lot of that has to do with what Goldfarb likes to call the narrative—one that convinced kids that the only route to middle-class respectability was to get a college degree and that suggested failing to do so meant having failed at the American dream of upward mobility. To…
The cost isn't $100k. The minimum wage pays $15k per year [1]. Four years of lost wages equals $60,000. Add that to the tuition debt and you have a real cost of $160,000.
The surplus wage is apparently no more than $25k. Even here, we see a 15% return on investment. Not shoddy per se, and certainly a sustainable debt load.
[1] https://www.epi.org/publication/minimum-wage-workers-poverty...
> Meanwhile, some people are more than happy to spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year > A lot of that has to do with what Goldfarb likes to call the narrative—one that convinced kids that the only route to middle-class respectability was to get a college degree and that suggested failing to do so meant having failed at the American dream of upward mobility. To…
I don't have any statistics to back this up, but I would guess that in many (most?) fields that don't absolutely require degrees for legal/other reasons, someone who spends 4 years actually working in their field is going to be in at least as good of shape as someone who spent those 4 years getting a degree (and maybe even better, depending on the field). That said, getting that first job without the degree is the ha…
Whether it's better to start with the broader or the narrower learning first... well, that's debatable, and it might boil down to personal differences.
> Meanwhile, some people are more than happy to spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year > A lot of that has to do with what Goldfarb likes to call the narrative—one that convinced kids that the only route to middle-class respectability was to get a college degree and that suggested failing to do so meant having failed at the American dream of upward mobility. To…
> spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year The cost isn't $100k. The minimum wage pays $15k per year [1]. Four years of lost wages equals $60,000. Add that to the tuition debt and you have a real cost of $160,000. The surplus wage is apparently no more than $25k. Even here, we see a 15% return on investment. Not shoddy per se , and certainly a sustainable debt lo…
Even if you do, you cannot just set all 40k to pay for it, you have to live somewhere and probably have a family, not insignificant expenses. So real repayment rate might be as low as 5k/year... and this assumes you keep in good health, do not get laid off etc. This is at best a 10 year debt for your typical middle class.
And where do you get a house here on top?
Earlier quoted context omitted.
I don't have any statistics to back this up, but I would guess that in many (most?) fields that don't absolutely require degrees for legal/other reasons, someone who spends 4 years actually working in their field is going to be in at least as good of shape as someone who spent those 4 years getting a degree (and maybe even better, depending on the field). That said, getting that first job without the degree is the ha…
Most higher degrees are supposed to teach some higher level stuff from a broader perspective than what will be required on a daily basis on the job, so someone who only does that particular job might be better at doing it, but will lack the ability to see beyond, and will still require degree-like learning. Whether it's better to start with the broader or the narrower learning first... well, that's debatable, and it…
> Meanwhile, some people are more than happy to spend $100,000 on a graphic design degree that may get them a job paying roughly $40,000 a year > A lot of that has to do with what Goldfarb likes to call the narrative—one that convinced kids that the only route to middle-class respectability was to get a college degree and that suggested failing to do so meant having failed at the American dream of upward mobility. To…
If the only reason why your buying a degree is get past an automated resume filter, and they are all the same otherwise, then for god sakes, don't buy the porsche, buy the used toyota!
Earlier quoted context omitted.
I believe this does not include most of the mortgages. For example, Fannie Mae has 3.35 trillion in assets, which dwarfs total student loans. https://en.wikipedia.org/wiki/Fannie_Mae
> I believe this does not include most of the mortgages. For example, Fannie Mae has 3.35 trillion in assets, which dwarfs total student loans. Fannie Mae is a publicly-traded, privately-owned corporation, despite being federally chartered for a public mission. So, yes, their holdings are not counted in government holdings, because they aren't the government.
Summary of what a student loan bubble bursting would be from the article. The government would guarantee less student loans. This would be means some for profit institutions might shut down.
The govt shouldn’t guarantee any student loans. My tax dollars shouldn’t be an ATM for student tuition.