Forgive my student loan!

doorki

...large parts of Europe have a better quality of life than the US.

Yeah, their economy is looking super! Let's follow the European model!

Actually, the Scandinavian region is doing quite well and they have the higher quality of life ratings.

http://www.immi.se/migration/control.htm

Have fun!

Ah, the cop-out "if you don't like it then leave" statement. Too bad this country is built on debate.

GasMasterFlash

http://www.immi.se/migration/control.htm

Have fun!

Ah, the cop-out "if you don't like it then leave" statement. Too bad this country is built on debate.

I was joshin' -- just like the "shut up" crack someone made a few pages back.

danifo0811

I'd agree there needs to be more information about interest rates. We had 6 months grace to start paying but interest started accumulating right away. When I wanted to pay off the entire amount, the bank screwed up 4 times calculating the interest.

Finding salaries or job availabilty is not always easy as the more educated and specialized you are the more the postings don't exist or say to be determined.

I still say parents and guidance counsellors should do a better job explaining this to kids. Kids are naive and have no clue about the consequences of their decisions.

I'm confused about saying things were better 15 years ago. When my husband graduated from engineering, half his class was unemployed. the dot com bubble had burst and Nortel (traditionally hired most of the class ) crashed and burned and let go most of their employees. How is that good?

If you'd asked people then, they would have given the same talk about college being the new high school and the costs of life. It sucks but you still have to pay your own way.

doorki

http://www.immi.se/migration/control.htm

Have fun!

Ah, the cop-out "if you don't like it then leave" statement. Too bad this country is built on debate.

I was joshin' -- just like the "shut up" crack someone made a few pages back.

All good. I thought it was out of character for what I have seen from you but I am always amazed by the number of people who think that is a valid response lol.

rml_16

I'm going to community college to get my core classes done and save a bit of money, but after this I'm going to be in school for possibly the next eight years.
Just on the loan situation and choosing expensive schools...I'm not going to waste eight years of my life on a second-rate education. I know it sounds spoiled, but that's the way I'm looking at it.
That's not to say loans are the answer, there's work-study, work, intelligent spending, grants and scholarships (which aren't always as easy as they seem, but they're there).

I don't want to go into debt, but if it's that or dropping out I'm going into debt. School is important to me.

Do a google search on the name Elizabeth Grosz. She was one of my professors at my "second rate" university.

But if it makes you feel better to spend hundreds of thousands of dollars on your education because you think that makes you somehow superior, just be prepared to pay it back on your own. That is your right.

rml_16

People on here are paying so little attention to the cultural and structural factors at play in going to college and getting a job. This debate does not belong on the MFP boards where people without an understanding of a complicated social situation are allowed to post without consequence.

Yes, we simpletons just can't grasp it can we? We should just shut up, right? Let's leave this complicated stuff to the elitists in their ivory towers. Thank you for correcting us, Oh Great and Wise One.

And of course none of us ever went to college or had to find a job.

MFPAddict

So how does a young person who is lucky to make $40K/year out of college (if they are lucky enough to find a job) supposed to pay down on their $50K student loan debt, pay their $1200/month apartment rent, while making payments on their $20K honda civic, while saving up for their $40K down payment, so they can buy their $200K townhouse before they turn 30, because heaven forbids one day they might want to actually start a family. See its almost impossible to start from scratch these days. Most of the young people cannot get out of debt without their parents' help.

Interesting.

I make less than 40k, so does my husband. We have just about the same in student loan debt, pay more for the mortgage on our home, and own both our cars.

Solution?

We have used cars that we paid for with cash. We bought a home that, while it needs work, fits in our budget, and we make smart choices.

He isn't even done getting his degree and it has already cost him 22k a year.

I have two degrees and will be paying them off til I'm 35.

All comes down to you make choices that suit your situation. If I can't afford a brand new car and car payment, I sure as hell aint paying off someone else's school loan.

Well said. I really wanted to respond to that post in more detail earlier but had to leave work. I have been with the same company for close to 20 years and I don't make much more than the $40k he wants college grads to make right out of college. I have several very close friends that are recruiters, and they complain all the time about the sense of entitlement of candidates just out of college. They scoff at job offers they should be grateful to receive.

Also not living in a $200k Townhouse either. Despite being told we could "afford" a much more expensive house, we bought something we knew was within our means. Fixed rate. A payment we could afford. Not an ARM with a lower payment with hopes we are going to get that BIG promotion a few years down the road.

jnh17

I think that this whole topic is just very frustrating.

I graduated from a private university in 2010 with a bachelor's in psychology. Oh, and about $60k in loans that my parents signed for and now I have to pay back.

I couldn't find a worthwhile job (other than retail and nannying) after graduation and thus I decided to get my master's. At least to defer loans long enough for me to find a more substantial job.

I will graduate in December of this year with a master's in psychology. With about $30k in loans. The loans I do have do not cover all of tuition or even books.

I hope to teach at a community college or online. Surprisingly, there are a lot of these jobs available and the pay is pretty good (compared to the $10/hr I am making working as a full time nanny).

Right now I am paying on a parent PLUS loan that my father took out for me my freshman and sophomore years at undergrad. He never asked me how much money I needed for those years, and took out more than I needed. Thanks to dear old Dad and Sallie Mae, the total of my $30K plus loan will be about $60K after ten years. I'm paying on it monthly now.....but when I have to start paying the loans in MY name come May of next year, I may be SOL. While many student loans give you the option of income based repayment, the loan in my Dad's name is completely fixed. Thank god I work full time and can afford things. For now.

What I think people don't realize is that our parents and teachers have been feeding us the idea that going to college is the magical step to a well paying job. You'll have all of your dreams come true if you go to college! Unfortunately, that's not true. I know more unemployed graduates than I do people who actually have anything other than a McJob. College is NOT necessary; it's a waste of time and money.

I hope my children enjoy paying off my student loans after I die.

Okay, no offense here, but it's not the teaching of "if we go to college we'll be rich" that's the problem. It's the "find what you love and make a career out of it!" or "you can be anything you want to be" (that's fine for a 5 year old) that is the issue. Everyone likes psychology -- that's why there are SO many psychology majors -- but there are very limited jobs and a huge, HUGE pool of candidates. People can't honestly believe that I sat in my first accounting class and fell in love with the field. Just like someone else brought up, I'm not going to say I won't help with college expenses for my kids if they pick a useless (not saying yours is useless) degree, but who knows.

I'm sorry but I don't buy into the whole college makes you more "well rounded" and makes our society better as a whole. Really? My college (deep in Texas) professors were cut from the same cloth aside from my criminal justice professors which were a cloth all their own (minor in CJ). You go to get a skill for a job. If I wanted a more well rounded child, I'd send them on missions to actually do some good getting well rounded. Trade schools have been looked down on far too long. In my area, those people make more (refinary operators) than most will ever see. Who gets to make 6 figures right out of school?

MFPAddict

Something else I forgot to add yesterday. Not only did I start off and earn an Associates Degree from a Community College before transferring to a 4 year school, BUT it was a far better learning experience for me than what I received at the University. As a group, my instructors at the Community College were far superior than the instructors I had at the University. Definitely not an example of "getting what you paid for."

angryguy77

Here's a thought, how about we demand the gov institutes an actual pro-growth jobs agenda and abandon it 'spread the wealth around" ideology instead of asking for our loans to be forgiven? That way, people find work and can afford their loan payments.

Instead of demonizing the rich, the gov should encourage people to become wealthy because they are the one who create the jobs. Or we could just tax the rich into oblivion and kill the incentive to better one's self.

tquig

I would prefer more education for those recieving the loans. I asked several times over, "what can i expect as a monthly payment after i graduate?" they never gave me an answer. I was never informed about the compounded interest rates, the fact that they would not request payments that were reasonable to my income, or the fact that they just plain lie and tell you while your in school "sure you can consolidate your loans with us for one easy payment!" then after you leave they they say "oh im sorry because of the loans you took out, your credit is bad so you cant consolidate your loans please pay us half your gross monthly income." I have been chased clear across the country trying to find a job that will cover what i owe. still havent found one. now due to the interest i owe 3 times what i borrowed. That is predatory lending. they shuck and jive while you dig yourself a hole and blame you for believing what they told you to sell it.

No i dont want loan forgiveness, i want loans with REASON.

I was also not informed about compounded interest and the interest rates on my student loans are higher than the ones on my credit cards! (Note-I use my credit cards responsibly and don't carry a balance.) They also don't tell you they capitalize the interest, so my 14,000 sallie mae loan is actually going to be 22,000.

You were not informed or you didn't understand the information they provided to you? There is a big difference. Not trying to pick a fight, but it would be illegal for them not to provide that info.

Bahet

Here's a thought, how about we demand the gov institutes an actual pro-growth jobs agenda and abandon it 'spread the wealth around" ideology instead of asking for our loans to be forgiven? That way, people find work and can afford their loan payments.

Instead of demonizing the rich, the gov should encourage people to become wealthy because they are the one who create the jobs. Or we could just tax the rich into oblivion and kill the incentive to better ones' self.

Oh where to even begin. 1st, the rich won't be taxed into oblivion by having them pay the same rate as the middle class. 2nd, they aren't the ones who create job. They are the ones who send jobs overseas. It's small business owners who create jobs. 3rd, even if they paid higher taxes than the middle class do you honestly think that would kill the incentive to get rich? that's a bit like saying "I don't want to win the lottery because then I'll have to pay taxes on it." You still end up WAY ahead.

tquig

I haven't read every single post, and I understand how economics work, but I just want to make sure everyone understands what the bill says. It isn't "good job for going to college forget about those silly loans" it's a 10/10 plan. Under the plan, those with student loan debt will pay 10% of their income towards their loan for 10 years. So if someone graduates and starts out making 40K a year they will only pay 4k towards their loans that year. If they go up to making 60K their payments will rise as well. Many people will pay their whole loan back. The problem is that right now repayments are based on percentage of loan amount so unfortunately new graduates are making their biggest (minimum you can always pay more) payments when they are just starting off and most likely making the least they will make.

The issue is that this only works if 10% of the individual's annual income over 10 yrs equals the loan amount. What happens if they have a tremendous loan debt for a degree in basket weaving? They won't have put a dent in the principle, even if there was no interest. We haven't helped the country, as some have claimed, by supporting an individual's perceived 'right' to an education.

The only way to make this work would be to set the repayment terms based upon the realistic earning potential for a degree. There is certainly a large amount of data available to base this upon. In other words, if the average salary for an entry level engineer is $40K, they might get 10 yrs to repay it. If you pick a degree with less earnings potential, you pay it over a longer period. It might make people rethink their education strategies.

On a side note, when I was in grad school at Syracuse University (Go Orange) I regularly heard students say they were only in grad school because they had little luck finding a job so this allowed them to defer their loan repayment- so getting more debt to avoid paying your debt makes sense how?

callmeBAM

How about the govt get OUT of the loan business. Private markets would handle this much better.

And why do you think tuition goes up every year? Because the schools know they govt will pay for it silly!
If the schools were dealing with banks that need to make a profit, the banks would not allow those rates to go up, or the would give out less loans, which supply and demand would cause the tuition to come back down eventually.

Artificial markets always come back to bite you in the *kitten*.

callmeBAM

I would also be for elimination school loans for arts and other "pointless" degrees where the graduate ends up delivering pizza. and yes, I have LOTS of friends who got degrees in vocal performance and theater, yada yada. Only 2 actually use their degree now, and that is b/c they are public school teachers. the rest are eternally underemployed or doing some menial task like office admin.

tquig

Here's a thought, how about we demand the gov institutes an actual pro-growth jobs agenda and abandon it 'spread the wealth around" ideology instead of asking for our loans to be forgiven? That way, people find work and can afford their loan payments.

Instead of demonizing the rich, the gov should encourage people to become wealthy because they are the one who create the jobs. Or we could just tax the rich into oblivion and kill the incentive to better ones' self.

Oh where to even begin. 1st, the rich won't be taxed into oblivion by having them pay the same rate as the middle class. 2nd, they aren't the ones who create job. They are the ones who send jobs overseas. It's small business owners who create jobs. 3rd, even if they paid higher taxes than the middle class do you honestly think that would kill the incentive to get rich? that's a bit like saying "I don't want to win the lottery because then I'll have to pay taxes on it." You still end up WAY ahead.

1- true, but it is very frustrating to make more but receive less. When my income moved my family into a higher tax bracket it cost me money. The extra income I made that barely raised me to the next level resulted in my net income being lower (man were we looking for deductions) 2- huge generalization depending upon your definition of rich (lets assume you mean millionares, not billionares). the vast majority of "rich" people own small business or invest in smaller companies, 3- this is like someone's grade analogy- you got a 100 on your test but we are going to lower it to a 70 and give your points to the kid that slept in class and only got a 40. Thanks for your hard work and effort!

kayteesb

My $0.02
Student loan debt is not bad. You have to adjust your lifestyle to make ends meet and student loans are included. I wouldn't be so harsh to say that anyone with student loan debt who is struggling to pay for it bit off more than they could chew. I'm inlcined to believe that circumstances change...life happens...and we adjust.
Call your lenders and work with them on paying your student loans back. Most are more than willign to work out payment arrangements you can afford. Also, seek the help of a financial strategist who will help you modify your finances so that you are able to pay the debt.
Loan forgiveness is usually offered and available to those who get into a transactional agreement with the government - work at a specific school or school system for a number of years in order to have the loan forgiven. There are other methods too so do your research. Nonetheless, forgiveness has to be researched and negotiated appropriately.
Be well.

BullDozier

Here's a thought, how about we demand the gov institutes an actual pro-growth jobs agenda and abandon it 'spread the wealth around" ideology instead of asking for our loans to be forgiven? That way, people find work and can afford their loan payments.

Instead of demonizing the rich, the gov should encourage people to become wealthy because they are the one who create the jobs. Or we could just tax the rich into oblivion and kill the incentive to better ones' self.

Oh where to even begin. 1st, the rich won't be taxed into oblivion by having them pay the same rate as the middle class. 2nd, they aren't the ones who create job. They are the ones who send jobs overseas. It's small business owners who create jobs. 3rd, even if they paid higher taxes than the middle class do you honestly think that would kill the incentive to get rich? that's a bit like saying "I don't want to win the lottery because then I'll have to pay taxes on it." You still end up WAY ahead.

Your comments show your class warfare bias.

I'd assume explaining how the wealthy create jobs through consumption and investment would fall on deaf ears unfortunately.

BullDozier

Here's a thought, how about we demand the gov institutes an actual pro-growth jobs agenda and abandon it 'spread the wealth around" ideology instead of asking for our loans to be forgiven? That way, people find work and can afford their loan payments.

Instead of demonizing the rich, the gov should encourage people to become wealthy because they are the one who create the jobs. Or we could just tax the rich into oblivion and kill the incentive to better ones' self.

Oh where to even begin. 1st, the rich won't be taxed into oblivion by having them pay the same rate as the middle class. 2nd, they aren't the ones who create job. They are the ones who send jobs overseas. It's small business owners who create jobs. 3rd, even if they paid higher taxes than the middle class do you honestly think that would kill the incentive to get rich? that's a bit like saying "I don't want to win the lottery because then I'll have to pay taxes on it." You still end up WAY ahead.

1- true, but it is very frustrating to make more but receive less. When my income moved my family into a higher tax bracket it cost me money. The extra income I made that barely raised me to the next level resulted in my net income being lower (man were we looking for deductions) 2- huge generalization depending upon your definition of rich (lets assume you mean millionares, not billionares). the vast majority of "rich" people own small business or invest in smaller companies, 3- this is like someone's grade analogy- you got a 100 on your test but we are going to lower it to a 70 and give your points to the kid that slept in class and only got a 40. Thanks for your hard work and effort!

All things being equal, when you earn more money and are moved to a higher income bracket, it does not result in lower take home pay. That's not how marginal tax rates work.

aiwich

The feeling of entitlement! Wow.

I went to a public University in WI costing roughly $10,000/year (without housing, etc). My parents paid precisely zero. I did not qualify for assistance other than Unsubsidized Stafford Loans.

I took those loans, I worked full-time throughout the school year and summers. I worked year round, I went to school year round. I also worked in High School to save - concept.

Upon graduation at the age of 21, I got a job paying in the $20K range, started paying back my student loans and living "small." Within two years I tripled my income through hard work and dedication.

I bought my first house at the age of 23.

I am now 35, continue my career path, a single mom, have zero debt, zero credit cards, and a 10 year old car, and a crappy lil' house to live in.

My point?? I don't owe you *kitten* if you can't pay your own student loans.

:drinker: :drinker: :drinker: :drinker: :flowerforyou: