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I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

nytimes.com

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Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#21

Post by sjg007 »

quantified wrote: post #10
Meph504 wrote: post #2

I'm sorry I take issue with these articles written from the perspective of they are a victim. They took $78k in loans to get a degree whose prospective returns were abysmal. They made the choice to defer resolving their debts, and let the interest be added to principal while not making payments. I'm not saying that the system doesn't do everything it should to help people understand. But the contracts they sign for t…

It seems heartless to agree but also level-headed. A bachelor’s in biology can only be obtained if you have quantitative reasoning, and understand compound growth and the fundamental insecurity of the natural world, so this seems especially egregious. If they were reporting on their own life as a journalist, what agency do they give themselves in making their own choices? Why borrow at least 1.5 years’ gross salary a…

A Bachelor's in biology doesn't earn you much either!

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#23

Post by jdmoreira »

valuearb wrote: post #13
m348e912 wrote: post #6

Earlier quoted context omitted.

I think something like this might be a more reasonable approach than forgiving student loan debt completely. There is little risk to banks servicing federally backed student loans, so interest rates should reflect that. There is a cost to servicing the loan, and banks should be compensated for that, but I don't think student loans should be a large government backed profit center for banks.

Zero risk isn’t zero cost. Banks pay interest to depositors, pay for loan servicing, have staff and marketing costs, etc. 0% would just be another handout to those least entitled to deserve one. The average college graduate will make roughly double the lifetime earnings of a high school graduate. Why should high school graduates pay more in taxes to make college loans cheaper for their bosses?

The college graduate will pay at least double in taxes. Will hopefully also deliver more in terms of innovation a competitiveness.

It could be easily seen as an incentive.

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#24

Post by cassalian »

People seem to blame the people giving out loans or the people receiving them. However, isn't this all the colleges fault for dramatically increasing their tuition over the last 20ish years?

Student loan forgiveness would be nice for the people who currently have student loan debt, but tomorrow, a whole new group of young people will be signing these loans and so what then? If the cost of higher education is allowed to rise unchecked, we are just going to continue to have this problem, no matter how many times we forgive loan debt.

IMO we need policies similar to rent control on college tuition.

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#25

Post by d0gbread »

jdmoreira wrote: post #19
Meph504 wrote: post #2

I'm sorry I take issue with these articles written from the perspective of they are a victim. They took $78k in loans to get a degree whose prospective returns were abysmal. They made the choice to defer resolving their debts, and let the interest be added to principal while not making payments. I'm not saying that the system doesn't do everything it should to help people understand. But the contracts they sign for t…

But sometimes that’s life when you are young. Making bad choices after bad choices. This is a predatory system. My soft European brain can’t even compute how such villainy is not only allowed but also the status quo

Agreed. The take you're replying to is logical and true but with sympathy and not empathy. In practice, the kids making these decisions have no business making them, full information or not. The numbers are so foreign and the outcome so distant, while they haven't even ever left home.

Further, not all kids making these decisions have strong families or networks that can help set them straight. Instead, all they hear is "college is critical" and accept on faith there's an ROI.

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#26

Post by Meph504 »

jdmoreira wrote: post #19
Meph504 wrote: post #2

I'm sorry I take issue with these articles written from the perspective of they are a victim. They took $78k in loans to get a degree whose prospective returns were abysmal. They made the choice to defer resolving their debts, and let the interest be added to principal while not making payments. I'm not saying that the system doesn't do everything it should to help people understand. But the contracts they sign for t…

But sometimes that’s life when you are young. Making bad choices after bad choices. This is a predatory system. My soft European brain can’t even compute how such villainy is not only allowed but also the status quo

What villainy?

The terms are clear, the real issue is how many people take on such massive debt without reading the terms or having a plan other than "it will work out."

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#27

Post by Meph504 »

m463 wrote: post #14
Meph504 wrote: post #12

Earlier quoted context omitted.

then all student loans would be be via the government, as why would any financial institution loan the money at 0% even more so now, with the level of default that high? Is that possible, certainly, is there enough will from the people of the U.S. to make it a priority to pay an increase in taxes, no. I think people should be responsible with their choices and that these sort of debts should require a class be taken…

There could be a case made for educated people paying more taxes over the years, so in that respect there could be some "externalities" to support a zero interest rate. That and the fact that large institutions are paying very little to borrow money nowadays. So maybe there is an argument for a "wholesale" interest rate. I thought it is also impossible to default on student loans.

From the banks perspective to make the money back, that it takes for a lot of people to payback their student loans, means they end up charging massive interest.

I don't like to see people placed in a financial situation that is a massive hardship, but the details were there, they weren't tricked, it's not like they are people loan sharing these loans. The people go to them, have the terms presented and seemingly take the loans that put them in a world of hurt.

Many of these loans, have you building interest the whole time you are in school. So you end up owning principal + 4 years interest the day you graduate, that's a bad deal that students take every semester.

And you can't easily discharge the debt, but tons of people just don't pay their loans back. And many more that take 10 times as long as they agreed to.

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#28

Post by valuearb »

jdmoreira wrote: post #23
valuearb wrote: post #13

Earlier quoted context omitted.

Zero risk isn’t zero cost. Banks pay interest to depositors, pay for loan servicing, have staff and marketing costs, etc. 0% would just be another handout to those least entitled to deserve one. The average college graduate will make roughly double the lifetime earnings of a high school graduate. Why should high school graduates pay more in taxes to make college loans cheaper for their bosses?

The college graduate will pay at least double in taxes. Will hopefully also deliver more in terms of innovation a competitiveness. It could be easily seen as an incentive.

The college graduate only pays more in taxes because they make immensely more. If your wages were doubled, would you complain about paying a quarter of the new earnings in taxes?

They will contribute innovation regardless, why should they be allowed to foist their education costs on their subordinates?

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#29

Post by quantified »

sjg007 wrote: post #21
quantified wrote: post #10

Earlier quoted context omitted.

It seems heartless to agree but also level-headed. A bachelor’s in biology can only be obtained if you have quantitative reasoning, and understand compound growth and the fundamental insecurity of the natural world, so this seems especially egregious. If they were reporting on their own life as a journalist, what agency do they give themselves in making their own choices? Why borrow at least 1.5 years’ gross salary a…

A Bachelor's in biology doesn't earn you much either!

It’s all what you make of it. I never got my bachelor’s, because I ran out of my parent’s limited funds and we weren’t going to borrow.

My family is lucky in some way because I’ve paid for my wife’s and one kid’s college so far. But saving so my kids could complete their education was a major life goal, achieved due in part to a lack of bad luck.

Re: I’ve Spent $60k to Pay Back Student Loans and Owe More Than Before I Began

#30

Post by prirun »

Idea: make universities fund the loans. Then they have an incentive to monitor student progress and make sure the student graduates and has a reasonable plan to make money to pay back the loan. If they make a lot of bad loans, they'll need to fire some of their cushy Dean and Assistant Dean jobs.
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