Student loan debt is more than credit cards or car loans

I don't see how getting rid of the federal student loan program would solve this problem when private student loans are lent at a much higher interest rate. -Sun_Tzu-

I suppose if the free market principle was put in place and you allowed universities to compete for the students this would drive prices down.

[QUOTE="-Sun_Tzu-"]I don't see how getting rid of the federal student loan program would solve this problem when private student loans are lent at a much higher interest rate. Philokalia

I suppose if the free market principle was put in place and you allowed universities to compete for the students this would drive prices down.

The federal student loan program seemed like a great idea back in 1965: Borrow to go to college now, pay it back later when you have a job. Surging above $1 trillion, U.S. student loan debt has surpassed credit card and auto-loan debt. This debt explosion jeopardizes the fragile recovery, increases the burden on taxpayers and possibly sets the stage for a new economic crisis. Story here. Ron Paul wants to get rid of the federal student loan program. Thoughts, opinions? Moody's Analytics doesn't think government loans and subsidies are particularly cost-effective.topsemag55

Germany has a free system of college that you take after high school. Upon deciding a preference for a particular field, you then go to the appropriate school and get a degree for whatever you desire to be involved with.

It's free. Socially subsidized. (I know that's a negative word in the US, but realistically that's what is going to happen anyway and we might as well embrace it. Sounds a lot like the healthcare issue too....)

If the US is going to try and shape it's future in more productive ways, then I suggest we begin by looking at our peers and modeling after them. Clearly something is working in Germany and it's high time we took note.

Hopefully I finish my degree before this bubble bursts.

Student loan debt, credit card debt and car loan debt all have one thing in common. They are all completely avoidable to the individual person.

Getting rid of federal student loan program...

Derp.

I wouldn't have been able to go to school without as with most people in college. No matter what he says, private companies cannot pick up the slack.

It's a good job I enjoy my degree then

I don't see how getting rid of the federal student loan program would solve this problem when private student loans are lent at a much higher interest rate. -Sun_Tzu-

We should follow the models of the U.K. and Sweden.

At least the money is being used well.Tylendal

probably should just make college education more exclusive so it becomes more valuable again. It's pretty worthless these days.StRaItJaCkEt36

Try getting a decent salaried job without schooling today and then tell me how worthless secondary education is.

probably should just make college education more exclusive so it becomes more valuable again. It's pretty worthless these days.StRaItJaCkEt36

Each level of education has become less exclusive and subsequently less prestigious. Hence, undergraduate degrees have become the new high school diploma, and graduate degrees have become the new undergraduate degrees.

[QUOTE="StRaItJaCkEt36"]probably should just make college education more exclusive so it becomes more valuable again. It's pretty worthless these days.Wasdie

Try getting a decent salaried job without schooling today and then tell me how worthless secondary education is.

[QUOTE="StRaItJaCkEt36"]probably should just make college education more exclusive so it becomes more valuable again. It's pretty worthless these days.BluRayHiDef

Each level of education has become less exclusive and subsequently less prestigious. Hence, undergraduate degrees have become the new high school diploma, and graduate degrees have become the new undergraduate degrees.

[QUOTE="BluRayHiDef"]

[QUOTE="StRaItJaCkEt36"]probably should just make college education more exclusive so it becomes more valuable again. It's pretty worthless these days.StRaItJaCkEt36

Each level of education has become less exclusive and subsequently less prestigious. Hence, undergraduate degrees have become the new high school diploma, and graduate degrees have become the new undergraduate degrees.

I want a cheeseburger right now.

Anyways, debt is apart of life. If managed correctly, using things like auto loans and mortgages can get you ahead in life much quicker.

You *can* live near debt free but it's a much more tedius process. Unlike what people want you to believe, banks don't try to screw you whenever possible. Loans and some CC debt isn't the end of the world. You just have to manage it correctly.

People who get in trouble with debt usually are ones who don't think things through. There will always be unlucky people who get hit with massive medical bills, or their house is burnt down and their crappy insurance didn't cover it properly and stuff like that, but if you've got a good head on your shoulders and a stable income, you can really minimize the chances that something like that will happen to you and be able to have a little debt.

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

comp_atkins

Pick a good major.

Problem solved.

[QUOTE="comp_atkins"]

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

Planet_Pluto

[QUOTE="Planet_Pluto"]

[QUOTE="comp_atkins"]

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

l4dak47

[QUOTE="Planet_Pluto"]

[QUOTE="comp_atkins"]

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

l4dak47

[QUOTE="l4dak47"][QUOTE="Planet_Pluto"]Sounds good to me.... or you'll have everyone going to school and upon graduating, promptly filing for bankruptcy.

Planet_Pluto

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

comp_atkins

[QUOTE="Planet_Pluto"]

[QUOTE="l4dak47"] Yes, because that's exactly what everyone will do. You do realize there are consequences to filing for bankruptcy? l4dak47

[QUOTE="l4dak47"][QUOTE="Planet_Pluto"]Those consequences will expire before student loans would be repaid in many instances.

Planet_Pluto

Pick a good major.

Problem solved.

Dynafrom

I wanna be a theator major, daddy.

[QUOTE="comp_atkins"]

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

Anyways, debt is apart of life. If managed correctly, using things like auto loans and mortgages can get you ahead in life much quicker.

You *can* live near debt free but it's a much more tedius process. Unlike what people want you to believe, banks don't try to screw you whenever possible. Loans and some CC debt isn't the end of the world. You just have to manage it correctly.

People who get in trouble with debt usually are ones who don't think things through. There will always be unlucky people who get hit with massive medical bills, or their house is burnt down and their crappy insurance didn't cover it properly and stuff like that, but if you've got a good head on your shoulders and a stable income, you can really minimize the chances that something like that will happen to you and be able to have a little debt.

Wasdie

Based on this post and your stance on lax gun laws in the U.S., I'd say that you're a poster boy for the status quo. Shame. The system has programmed you well. Very well.

[QUOTE="Planet_Pluto"]

[QUOTE="comp_atkins"]

wait what?

"Complicating the picture further: Like child support and income taxes, student loans usually can't be discharged or reduced in bankruptcy proceedings, as can most other delinquent debt. This restriction was extended in 2005 to also include student loans made by banks and other private financial institutions."

So if you get a student loan now from a private bank and go bankrupt you're still on the hook for life for it? The fkuc?

Dynafrom

I was askingComp because he seemed to imply that people should be able to just walk away from their student loan debt via bankruptcy.

[QUOTE="Planet_Pluto"]

[QUOTE="l4dak47"] Yea, meanwhile, they'll have a hard time even getting an apartment or a car or even a job. l4dak47

[QUOTE="l4dak47"][QUOTE="Planet_Pluto"]Thats the same crap I hear people whining about because they have to pay their loans back.

Dynafrom

Well, college prices are ridiculous.

Maybe you shouldn't have majored in underwater basket weaving, and partied away at school.Dynafrom

College tuition needs to go down, that's the big thing. People need to have the option of going to college, but one year at a private school should not cost more than your entire pre-college education (which it does, my town spends $11,669 for the entire 13 years of education before college per student. Many colleges charge $50,000 per year).

I do not believe for a second that tuition needs to be as high as it is, its bad for the students and its bad for the economy. The colleges like it because they get paid directly by the banks, so there's no risk in not getting their money back, meaning they'll have more available for educational tools, technology, and scholarships, and banks like it because they can seriously collect afterward. It needs to change though. College is far too expensive and the pay off isn't there.

The worst thing is I have so many friends who plan on going to $50,000 a year private schools with majors like Architecture and English. They aren't getting their money back, they're smart, but they're going to get screwed with the debt. Everyone thinks that all previous generatoins had to pay back a $200,000 student loan, they have no idea how wrong they are.

[QUOTE="Dynafrom"]

Yea, that's what tends to happen when universities bend you over and fvck you for every cent they can get. l4dak47

Well, college prices are ridiculous.

[QUOTE="Dynafrom"]Maybe you shouldn't have majored in underwater basket weaving, and partied away at school.T_P_O

[QUOTE="T_P_O"][QUOTE="Dynafrom"]Maybe you shouldn't have majored in underwater basket weaving, and partied away at school.Dynafrom

[QUOTE="l4dak47"][QUOTE="Planet_Pluto"]Thats the same crap I hear people whining about because they have to pay their loans back.

Dynafrom

[QUOTE="T_P_O"][QUOTE="Dynafrom"]Maybe you shouldn't have majored in underwater basket weaving, and partied away at school.Dynafrom

College tuition needs to go down, that's the big thing. People need to have the option of going to college, but one year at a private school should not cost more than your entire pre-college education (which it does, my town spends $11,669 for the entire 13 years of education before college per student. Many colleges charge $50,000 per year).

I do not believe for a second that tuition needs to be as high as it is, its bad for the students and its bad for the economy. The colleges like it because they get paid directly by the banks, so there's no risk in not getting their money back, meaning they'll have more available for educational tools, technology, and scholarships, and banks like it because they can seriously collect afterward. It needs to change though. College is far too expensive and the pay off isn't there.

The worst thing is I have so many friends who plan on going to $50,000 a year private schools with majors like Architecture and English. They aren't getting their money back, they're smart, but they're going to get screwed with the debt. Everyone thinks that all previous generatoins had to pay back a $200,000 student loan, they have no idea how wrong they are.

RandomWinner

This is exactly what I saw in school. Programs like "Art History" or "Philosophy" rammed with 2000+ students who pay a ridiculous amount of money to qualify them for what? A barista at Starbucks?

You don't even need to be a math genius to calculate that with a 120k+ loan @ 6.5%+ has a minimum monthly payment of 1k+. Kind of hard to pay when you only make 30k~ a year, especially when you only pay the minimum (which would probably stay with you for 30 years).