Student debt "Crisis"

[Crippledsledge64]

I think I'm as tired of hearing about the "student loans crisis" as I am about the older generations bitching about those caught in it.
Came from a small farm family who couldn't help out with college, that's fine, that's just life. Worked hard through school as did my wife, still came out with a small mortgage worth of loans that hold us back from buying a house or having kids but were lucky and still afford a decent apartment and have good vehicles. It was our choice to take loans and now you got to pay it back, I get it.

The "crisis" isn't about the fact that people borrow. Its the fact that college tuition cost have sky rocketed by 160% in comparison to minimum wage and early career salaries which have risen only 25%. 30 years ago (when many of you were in college) you'd only have to work 400 hours to pay off a year of school, now it takes over 3000.
In addition, a lot of these "kids" are the ones padding your stock portfolios with interest rate about 14%, the down side is that most aren't buying houses, having kids, or other activities that drive other areas of the economy.

My wife and I are lucky in that we both have high paying degrees and that we both have strong work ethic but to boil this down to a bunch of "coddled" kids who are just looking for handouts is idiotic plain and simple. Then again maybe that's just the way the generations treat each other, seems like the greatest generation saw the boomers the same way.

Everything said and done however, i'd probably trade my degree and debt for a trade. No one talked about that though when I was 18, that was where the kids who weren't "smart" enough got encourage to go.

 

[ODB]

I’ve always wondered why basic economics was never taught in grade school. You know, credit cards, debts, checking accounts, taxes, compounding interest....must be a reason, but can’t put my finger on it...

 

[Poser]

Why fiorgive any debt that they signed up for? These folks do not need any more coddling. No free rides, welcome to big boy rules and consequences.

I’m not arguing that people shouldn’t be responsible for their debt, but you seem to be implying that this is a problem exclusive to the younger millennials. You have Gen Xers, well into their 40s with a 20+ year work history still paying off student loan debt. The real problem isn’t 25 year old kids in debt, it’s people, be it older millennials or younger Xers, who are in their earning prime, still making $600-$1000 a month in student loan payments.

 

[Ratbeetle]

To think, I gave Uncle Sam four years of my life during the height of the GWOT in exchange for my college education. What a fool! Apparently I should have racked up 6 figures in debt on an transgender racial studies degree and then screeched about "predatory loans."

Personal responsibility is for suckers.

 

[541hunter]

I graduated with just over 80k in debt. All will be paid off by 2021. I chose a degree field that pretty much guaranteed me a job. For me it has been worth it. I logged and fought fire during the summers to keep things going.
The government should never have gotten involved in the loan business. By offering loans to practically anyone who asked they all but ensured that college costs would go up exponentially.
Politicians can claim all they want that they want to forgive or fix the system. They are completely full of it, every single one of them. The government will never let go of a business that makes them billions of dollars.


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[brsnow]

If you start a business and you fail, most obligations are eliminated. Our current president is a solid example of using bankruptcy laws for an advantage.You fail in education or if you get sick, student loans and medical bills are attached to you forever. Education and health care have this special treatment. Interesting no doubt.

 

[*zap*]

I’m not arguing that people shouldn’t be responsible for their debt, but you seem to be implying that this is a problem exclusive to the younger millennials. You have Gen Xers, well into their 40s with a 20+ year work history still paying off student loan debt. The real problem isn’t 25 year old kids in debt, it’s people, be it older millennials or younger Xers, who are in their earning prime, still making $600-$1000 a month in student loan payments.

I do not care what age someone is they need to repay what they borrowed.

 

[colersu22]

I went into an apprenticeship and make more than friends that went to college and got degrees, a few of which do not even work with the degree they got. I see people get degrees and get pissed when they get a job right out of college for less than $20 an hour and I tell them a 1st year apprentice makes more than them and has no debt.

My wife on the other hand got a bachelors in Biology and then went to pharmacy school, we are fortunate enough that her parents saved and she graduated both under grad and grad school with no student loans and my sister in law was in the same boat with a BS and no student loans. My in-laws don’t make a ton but they saved so they could have both kids go to college if that’s what they wanted and to help by not having them start out with the massive debt that other have now.

 

[307]

I do not care what age someone is they need to repay what they borrowed.

How much Fox News do you watch in an average day? Gut feeling.

 

[Ratbeetle]

How much Fox News do you watch in an average day? Gut feeling.

Must be lonely being a Bernie fan in WY...gut feeling.

 

[monsterB]

I do not care what age someone is they need to repay what they borrowed.

Hopefully you feel the same way about corporation bankruptcies, pension liabilities and tax obligations.

 

[mooretitan]

Well student debt sucks but the reality for most people it doesn’t have to be that way. I went to school on a athletic scholarship and came out with about 10,000 in debt. Paid it off in a year. Wife was lucky and parents paid for her but she worked all through college.
When we look at our kids(5) we realize that paying for them to all go to college is not going to happen. I am not going put my life on hold to pay for them to to go to school to a certain degree. We have told them that we will pay for a JC for 2 years and they will work during that time. JC is pretty cheap and when they are done after 2 years they should have been able to save enough money to pay for a year of college at a university. The last year we will do a 50/50 split. They will work the entire time and should come out of college with almost no debt.
What really hurts these kids is paying out of state tuition and board. My nephew is going out of state and it will cost him roughly $200,000 for his degree. Yes it will lead to a great degree but he could have done it a lot cheaper
1. Use your JC system
2. Join the military
3. Move in state and get a job for year or so and then apply to the college

Can’t believe these parents who just take out debt for their kids. Guess I just don’t love them enough to do that

 

[Poser]

I do not care what age someone is they need to repay what they borrowed.

But you do acknowledge that a significant chunk of the population who are in their earning prime are partitioning a significant amount of their income to pay for education and that there are economic ramifications because of this and these ramifications may very well effect you directly or indirectly now or in the near future?

 

[307]

Must be lonely being a Bernie fan in WY...gut feeling.

Libertarian actually. The government involvement in the student loan system created this mess.

No other debt is enforced to the same degree as student loan debt, by the force of the federal govt.

The govt involvement has opened the door to abuse.

 

[LostArra]

Michael Lewis Podcast Against the Rules:

The Seven Minute Rule is an interesting episode about the government outsourcing the"servicing" of student loans to private companies. It's hard to play by Zap's big boy rules when the rules change on the fly and are very one-sided.

1. Getting useless degrees while taking out student loans, by useless I mean a degree that will never see a return on investment
2. Many people at college shouldn’t be there.
3. High school counselors are telling kids and parents that if you don’t go to college you will never amount to anything.
4. Not having a career path or goal when you decide on a major
5. Parents that are in massive amounts of debt, so students think that debt is normal, and have no idea how to live within or below your means
6. Keeping up with the Jones’s. Students lease/buy cars on student loans, buy insanely nice clothes, eat out constantly, new phones, etc.

/professor soapbox

zacattack should make a poster for parents.

 

[dr.mooseknuckles]

I was fortunate enough to have parents that had saved for my sister and I to go to college out of state. Grad school was on us though.

I have many veterinary school classmates and colleagues that knowingly took on upwards of $350k to realize their dreams of being a vet. At 6% interest and the worst income to debt ratio out of all medical professionals, many of them will be paying for the rest of their working lives and beyond. I like my career path, but not that damn much.

As stated above, getting an education within your means is key.


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[Sportsman]

Well student debt sucks but the reality for most people it doesn’t have to be that way. I went to school on a athletic scholarship and came out with about 10,000 in debt. Paid it off in a year. Wife was lucky and parents paid for her but she worked all through college.
When we look at our kids(5) we realize that paying for them to all go to college is not going to happen. I am not going put my life on hold to pay for them to to go to school to a certain degree. We have told them that we will pay for a JC for 2 years and they will work during that time. JC is pretty cheap and when they are done after 2 years they should have been able to save enough money to pay for a year of college at a university. The last year we will do a 50/50 split. They will work the entire time and should come out of college with almost no debt.
What really hurts these kids is paying out of state tuition and board. My nephew is going out of state and it will cost him roughly $200,000 for his degree. Yes it will lead to a great degree but he could have done it a lot cheaper
1. Use your JC system
2. Join the military
3. Move in state and get a job for year or so and then apply to the college

Can’t believe these parents who just take out debt for their kids. Guess I just don’t love them enough to do that

How old are your kids? CA junior colleges are a great deal but unless you are commuting distance to a four year school, it will still be tough for a kid to save enough to pay for junior year and split senior year with you. If you are local with no room and board, it is possibly feasible.

Military route is best deal and may be able to get an associates on tuition assistance before getting out. Or ROTC and go commissioned.

 

[*zap*]

But you do acknowledge that a significant chunk of the population who are in their earning prime are partitioning a significant amount of their income to pay for education and that there are economic ramifications because of this and these ramifications may very well effect you directly or indirectly now or in the near future?

Other people choices effect me daily. Everyone needs to pay their student loans.

 

[mooretitan]

JC and University are local

 

[MTNRCHR]

I am a journeyman tool and die maker that went through a company paid 4 year apprenticeship program. I make twice what my brother and sister make, one with a bachelors in business the other with a master degree in something. I'll be pushing my kids towards a trade.