They probably still have the latest Apple gear though.
More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
51–60 of 298 posts
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#52Earlier quoted context omitted.
Or we could make public college free, just like we did with high school.
And when public college becomes the new high school continue to add layers of education as needed.
Nah, we just realize that we're demanding an excessive amount of education for most jobs because employers can demand it with no cost to themselves, forcing an entire generation to take on a debt burden their parents did not have to because the cost of education had not become overly inflated yet.
The fix for this can be realized with a tax that funds education; if you need someone with a bachelors, you pay X as a tax. If you need someone with a masters, you pay 2X. A PhD? 4X. If the position doesn't require a degree and you train them, you pay no tax (ie journeyman or apprenticeship).
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#53Serious question: Who loses out if all the student debt got canceled? Not the colleges, I assume, because they already got the tuition. And not the students. So would it be loan companies and the US government? Would such an action be catastrophic?
I think the "cancelling" action you're saying would be some way to pay the loan companies off with US govt funding. So, as a US taxpayer who is almost done paying his student loans, I lose out. Twice, i think.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#54Earlier quoted context omitted.
This is such a silly meme. Its not "due to government involvement." Its "due to the manner of government involvement." Loans that are guaranteed by the government, for all students, that can't be discharged by bankruptcy, is an idea clearly put together by lenders. If we wanted government subsidies for private education, there are plenty of alternatives. Here's one: government guaranteed loans for all students; but r…
Or we could make public college free, just like we did with high school.
"Free" is covered by taxes already paid. So making university "free" would be an additional tax. But instead of the attendees paying for them directly, the pay would be spread out. Also, it would change the dynamic of which school you could attend. High School is covered based on taxes in the town paid for by property owners. Some university programs are subsidized by state taxes (like SUNY for New York) and are discounted for residents of the state. This would likely just extend these kinds of programs with a higher state tax.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#55Serious question: Who loses out if all the student debt got canceled? Not the colleges, I assume, because they already got the tuition. And not the students. So would it be loan companies and the US government? Would such an action be catastrophic?
I think this is kind of a nonsensical question but please feel free to correct me if I'm wrong.
Imagine you and I agree to a deal, both verbally and contractually (i.e. on paper). I give you 10 euros and you pay me back 11 euros in exactly 1 year.
Now 6 months into the deal you suddenly ask yourself: "Well who would lose out when this debt gets cancelled?"
Do you see now why I think it is a nonsensical question?
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#56This one is easy. People are buying things that they can't afford. Throwing it into a loan and then partying their way through school. Since that worked out so well, then they do that with their car, house, furniture, cell phones, and car rims.
You aren't entitled to 100,000 dollar education.
You aren't entitled to go down to Mexico every spring break.
you aren't entitled to eat pizza and hit the bar every weekend.
You aren't entitled to a college education.
Go learn a trade, get scholarships, join the military, work for a company that will pay for your education, start your own business.
Instate tuition at VA Tech is 13k for the year, if you live in Texas, UT is 4-5k a semester. While not cheap, this is far from unaffordable.
I have zero sympathy for junior who goes to some 150,000 a year liberal arts college and gets a degree that makes no money or requires another 2-4 years of school.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#57Earlier quoted context omitted.
The amount of people I know with degrees who work in retail, or something completely unrelated is staggering. From my observations, I'd guess "underemployment" is the biggest contributor to the late payments. This is just another example of why I urge any young people I know (high school age) to think long and hard before choosing to go to a 4 year college. When I graduated high school in 99', we were primed to think…
The key is a marketable college degree. In fields such as aerospace and defense where the credential is the key to open the door, get the credential as cheaply as possible. Do a couple of years at a community college and then finish at a state school. Name-brand degrees bring no extra value. Oh yeah, and get your master’s while you’re still in the zone. The idea that trade school somehow is lower tier or oppressive i…
Not only what you said, trades can also lead you down a path of owning your own business. If that is the direction you go often you can exceed the incomes of the college educated quite handily.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#58Earlier quoted context omitted.
This is such a silly meme. Its not "due to government involvement." Its "due to the manner of government involvement." Loans that are guaranteed by the government, for all students, that can't be discharged by bankruptcy, is an idea clearly put together by lenders. If we wanted government subsidies for private education, there are plenty of alternatives. Here's one: government guaranteed loans for all students; but r…
> but repayment of those loans is capped as a percentage of the person's income, Depending on what you mean by this, it could be either a good idea or nothing would change. So can you clarify? If you simply mean that the students would only have to pay back a portion of the loan, but the government would still have to fund the rest to the university, then nothing would change from how things work right now. The unive…
I meant as in, student loans (whether private or public) have a maximum mandatory monthly repayment rate of, say, 10% of the individual's monthly income.
So let's say I took in $1000 before taxes this month. The highest my minimum monthly payment can be on my student loans (total) is $100.
That puts pressure back on the university to keep their tuition rates in line with what can actually be repaid, ie, the actual financial value of the degree itself.
Not saying this is the ideal solution, it just shows how much of a canard the parent poster's answer is. There are plenty of solutions to this issue, depending on what we want to do.
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#59Earlier quoted context omitted.
This is such a silly meme. Its not "due to government involvement." Its "due to the manner of government involvement." Loans that are guaranteed by the government, for all students, that can't be discharged by bankruptcy, is an idea clearly put together by lenders. If we wanted government subsidies for private education, there are plenty of alternatives. Here's one: government guaranteed loans for all students; but r…
Or we could make public college free, just like we did with high school.
Maybe the real problem is that we've developed this caste system over the last 50 years where people who don't get college degrees are excluded from careers that can sustain a middle class lifestyle. What if free college just moves the goal post and in a couple more decades nearly everyone has a Master's degree and you need a PhD to earn a decent living? What happens if the most talented segment of our work force ends up spending their most creative years trying to achieve meaningless credentials instead of actually contributing to the GDP?
(Preemptive Edit: I know they have free college in some European countries, but maybe they have the same problem.)
Re: More Americans Are Falling Behind on Student Loans, and Nobody Quite Knows Why
#60The share of Americans at least 31 days late on loans from the U.S. Department of Education ticked up to 18.8 percent as of June 30, up from 18.6 percent the same time last year Is this newsworthy?
The uptick isn't. But if 1/5 student loans are more than 30 DPD, that will be a problem.
Just for some perspective mortgage delinquency rages (90+ days overdue) were highest at 11.5%[1]. But there's a lot of factors to consider, so I wouldn't necessarily say this is the sign that the bubble is going to pop soon.