scgal
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Post by scgal on May 20, 2022 9:04:47 GMT -5
I tend to think that to buy a house costs money, down, lawyers etc... gotta drive but a hyundai drives you to the same place a lexus does. Peoples choices of needs and how they justify them vs not paying their student loans and their justification for it yet complain about still being in debt for 15 years post grad. Who is really to blame? Rent here is stupidly expensive and so are house prices unfortunately. But buying a house locks in your costs vs. Being at the mercy of rent increases. Most young people buying a house are getting gifts for down payments, or using housing assistance programs. I've said before, and will say again that our student loan system is predatory. Lenders charging above market rates on loans that carry no risk is predatory. There are a lot of things that got us here, but the fault and the blame are in the institutions with all the power. True the lenders are predatory..That is before hand. Most not all but most people keep kicking the can down the road. Buying a house is great idea how many keep upgrading to another house, upgrading their car to more expensive, luxury car before they make extra payments on student loans. How many people on this board is have carried, or is carrying student loan debt 10 yrs past their graduation. Instead of being personal accountable to me it seems like people just wants to blame the system and bitch.
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pulmonarymd
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Post by pulmonarymd on May 20, 2022 9:32:31 GMT -5
More urban myths. Maybe you should investigate what the percentage of these so called people living in a way you disapprove. Maybe you will learn something
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TheOtherMe
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Post by TheOtherMe on May 20, 2022 10:08:07 GMT -5
FYI, DN1 has all kinds of loans for his PhD. They make good money. They drive a 1994 Sable Mercury that his grandparents gave them.
They had agreed on a price and signed a promissory note. When he sent the check for the first payment, it was never cashed. When he called grandma, she said they had decided to give it to them.
They currently live in downtown Toronto and it only gets driven when they come back here.
His wife likes really nice things but she understood the financial reasons for keeping this car as long as possible.
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nidena
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Post by nidena on May 20, 2022 10:11:35 GMT -5
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scgal
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Post by scgal on May 20, 2022 12:31:43 GMT -5
More urban myths. Maybe you should investigate what the percentage of these so called people living in a way you disapprove. Maybe you will learn something What urban myths? You going to tell me you don't know anyone who has or have student loans that did not put make paying the student loans at a higher priority. I call bullcrap
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pulmonarymd
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Post by pulmonarymd on May 20, 2022 13:11:39 GMT -5
More urban myths. Maybe you should investigate what the percentage of these so called people living in a way you disapprove. Maybe you will learn something What urban myths? You going to tell me you don't know anyone who has or have student loans that did not put make paying the student loans at a higher priority. I call bullcrap No, people are irresponsible. People will scam the system. But conservatives use that argument to say we shouldn’t do anything. Are the majority of the people with student loans driving a Lexus? Are they buying mcmansions? The question that should be asked is if such a program will be cost-effective. How much of a benefit will this be to those who are helped. But if we avoid doing anything because someone undeserving benefits, we wind up with the stupid welfare system we have, where making $1 less gets you full benefits and $1 more cuts you off. All of you conservatives who rail against these programs such as welfare and food stamps, who is the typical beneficiary? Look at your poor white neighbors, because it is them. And I bet they vote Republican
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imawino
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Post by imawino on May 20, 2022 14:46:38 GMT -5
Rent here is stupidly expensive and so are house prices unfortunately. But buying a house locks in your costs vs. Being at the mercy of rent increases. Most young people buying a house are getting gifts for down payments, or using housing assistance programs. I've said before, and will say again that our student loan system is predatory. Lenders charging above market rates on loans that carry no risk is predatory. There are a lot of things that got us here, but the fault and the blame are in the institutions with all the power. True the lenders are predatory..That is before hand. Most not all but most people keep kicking the can down the road. Buying a house is great idea how many keep upgrading to another house, upgrading their car to more expensive, luxury car before they make extra payments on student loans. How many people on this board is have carried, or is carrying student loan debt 10 yrs past their graduation. Instead of being personal accountable to me it seems like people just wants to blame the system and bitch. I'm curious where you got that data? I find the claim that it is "most" are not paying on their loans in accordance with the payment plan fairly suspect.
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NomoreDramaQ1015
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Post by NomoreDramaQ1015 on May 20, 2022 15:56:46 GMT -5
Even Phil has said if it's low interest debt keep paying the minimum and use the rest of your money to build wealth instead. If it's not breaking your back I see absolutely no reason to utilize the tools made available for student loan repayment and not rush to pay it off before you have to. That doesn't address our broken college education system in this country though. We're talking about a system that feeds on itself by handing out non-dischargable loans to kids then uses the fact that they can easily get these loans to drive up costs. Telling people to eat beenie weenies and don't move on with life until they pay back what they owe doesn't fix the system anymore than yelling at people to not buy houses fixed the corruption in the mortgage industry. Speaking of mortgages when I signed mine I got a letter less than 3 weeks later in the mail that it had been sold to another company. Me making an extra mortgage payment a month does absolutely nothing to solve the fact they are back to playing stupid games.
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TheOtherMe
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Post by TheOtherMe on May 20, 2022 16:09:31 GMT -5
Speaking of mortgages when I signed mine I got a letter less than 3 weeks later in the mail that it had been sold to another company. Me making an extra mortgage payment a month does absolutely nothing to solve the fact they are back to playing stupid games. My first mortgage check on this house was cashed but not credited to the loan account. My mortgage broker called to see why I hadn't made my payment. I told him I had and the check was cashed. Apparently he realized everyone who had closed on mortgages and made their first payments were showing as delinquent. It was because the mortgage was sold and nobody bothered to tell us where to make the payment. He got it all straightened out. This was the 2nd time in my life that had happened to me on the first payment. Yes, that was back in the days when I wrote checks. But that was not the problem. It was nobody told us the correct place to mail the checks.
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scgal
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Post by scgal on May 20, 2022 16:25:07 GMT -5
What urban myths? You going to tell me you don't know anyone who has or have student loans that did not put make paying the student loans at a higher priority. I call bullcrap No, people are irresponsible. People will scam the system. But conservatives use that argument to say we shouldn’t do anything. Are the majority of the people with student loans driving a Lexus? Are they buying mcmansions? The question that should be asked is if such a program will be cost-effective. How much of a benefit will this be to those who are helped. But if we avoid doing anything because someone undeserving benefits, we wind up with the stupid welfare system we have, where making $1 less gets you full benefits and $1 more cuts you off. All of you conservatives who rail against these programs such as welfare and food stamps, who is the typical beneficiary? Look at your poor white neighbors, because it is them. And I bet they vote Republican I left political affiliation out of it because I see people from both sides whine about their debt and don't do anything to help themselves pay it off. You like to generalize me I vote conservative but I do admit welfare and food stamps need an overhaul to help out the needy better I just don't see republicans or democrats doing anything that real do any real good.
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scgal
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Post by scgal on May 20, 2022 16:28:16 GMT -5
True the lenders are predatory..That is before hand. Most not all but most people keep kicking the can down the road. Buying a house is great idea how many keep upgrading to another house, upgrading their car to more expensive, luxury car before they make extra payments on student loans. How many people on this board is have carried, or is carrying student loan debt 10 yrs past their graduation. Instead of being personal accountable to me it seems like people just wants to blame the system and bitch. I'm curious where you got that data? I find the claim that it is "most" are not paying on their loans in accordance with the payment plan fairly suspect. No data that is why I originally posted I would like to see a study done on it. The most I refer to is people I know family and friends who whine and cry about their loans.
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raeoflyte
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Post by raeoflyte on May 20, 2022 16:37:24 GMT -5
Rent here is stupidly expensive and so are house prices unfortunately. But buying a house locks in your costs vs. Being at the mercy of rent increases. Most young people buying a house are getting gifts for down payments, or using housing assistance programs. I've said before, and will say again that our student loan system is predatory. Lenders charging above market rates on loans that carry no risk is predatory. There are a lot of things that got us here, but the fault and the blame are in the institutions with all the power. True the lenders are predatory..That is before hand. Most not all but most people keep kicking the can down the road. Buying a house is great idea how many keep upgrading to another house, upgrading their car to more expensive, luxury car before they make extra payments on student loans. How many people on this board is have carried, or is carrying student loan debt 10 yrs past their graduation. Instead of being personal accountable to me it seems like people just wants to blame the system and bitch. We'll make the most impact addressing the lenders and lending practices. Tackling that could fix 80% of the issues. Or we could throw all of our energy into tracking loan users and fix what? Add in a class in high-school about compound interest? Only push high income kids toward college? It's like the environment. I can only do so much when it comes to reducing my environmental impact. It doesn't mean that I should or will stop, but a few thousand people composting, Reusing, recycling makes the smallest dent in the current issues. Hold coke and Pepsi and Amazon accountable for the waste they create and we'll actually see a difference.
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scgal
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Post by scgal on May 20, 2022 16:41:23 GMT -5
Even Phil has said if it's low interest debt keep paying the minimum and use the rest of your money to build wealth instead. If it's not breaking your back I see absolutely no reason to utilize the tools made available for student loan repayment and not rush to pay it off before you have to. That doesn't address our broken college education system in this country though. We're talking about a system that feeds on itself by handing out non-dischargable loans to kids then uses the fact that they can easily get these loans to drive up costs. Telling people to eat beenie weenies and don't move on with life until they pay back what they owe doesn't fix the system anymore than yelling at people to not buy houses fixed the corruption in the mortgage industry. Speaking of mortgages when I signed mine I got a letter less than 3 weeks later in the mail that it had been sold to another company. Me making an extra mortgage payment a month does absolutely nothing to solve the fact they are back to playing stupid games. you are right. Build weath etc. the problem here is the people doing this shouldn't be whining about not getting their loans paid off right? The system is broken the money is handed out like it's water on a hot day. The loans shouldn't be dischargeable instead if the loans are not paid off say in 10 years all of the persons income tax checks go to the lender and the persons pay gets garnished. I never said to eat beenie weenies or don't move on with life. I just think people should be responsible for themselves and stop looking for bailouts. The current system sucks and anyone paying a little attention in the last 10 years had to hear something about the student loan crisis but yet there they go borrowing up to their eyeballs. We haven't even touched the kids that go for a year or two drop out or kicked out, or take loan after loan to live off while in school and take 15 years to get a degree all the while they borrow every year because they are still going to school I know 2 people who are doing this.
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raeoflyte
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Post by raeoflyte on May 20, 2022 16:50:59 GMT -5
Even Phil has said if it's low interest debt keep paying the minimum and use the rest of your money to build wealth instead. If it's not breaking your back I see absolutely no reason to utilize the tools made available for student loan repayment and not rush to pay it off before you have to. That doesn't address our broken college education system in this country though. We're talking about a system that feeds on itself by handing out non-dischargable loans to kids then uses the fact that they can easily get these loans to drive up costs. Telling people to eat beenie weenies and don't move on with life until they pay back what they owe doesn't fix the system anymore than yelling at people to not buy houses fixed the corruption in the mortgage industry. Speaking of mortgages when I signed mine I got a letter less than 3 weeks later in the mail that it had been sold to another company. Me making an extra mortgage payment a month does absolutely nothing to solve the fact they are back to playing stupid games. you are right. Build weath etc. the problem here is the people doing this shouldn't be whining about not getting their loans paid off right? The system is broken the money is handed out like it's water on a hot day. The loans shouldn't be dischargeable instead if the loans are not paid off say in 10 years all of the persons income tax checks go to the lender and the persons pay gets garnished. I never said to eat beenie weenies or don't move on with life. I just think people should be responsible for themselves and stop looking for bailouts. The current system sucks and anyone paying a little attention in the last 10 years had to hear something about the student loan crisis but yet there they go borrowing up to their eyeballs. We haven't even touched the kids that go for a year or two drop out or kicked out, or take loan after loan to live off while in school and take 15 years to get a degree all the while they borrow every year because they are still going to school I know 2 people who are doing this. But the first 5-10 years are your lowest paying and most expensive. Garnishment when they're just starting to earn decent money? Without addressing the interest rate on no risk loans? I'd rather people spend those first years insuring the heck out of themselves for health and disability and saving up an emergency fund and start saving for retirement. No one is getting out of student loans. They're not forgiven till you die. Being more punitive on borrowers will not fix our problem.
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scgal
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Post by scgal on May 20, 2022 19:31:13 GMT -5
you are right. Build weath etc. the problem here is the people doing this shouldn't be whining about not getting their loans paid off right? The system is broken the money is handed out like it's water on a hot day. The loans shouldn't be dischargeable instead if the loans are not paid off say in 10 years all of the persons income tax checks go to the lender and the persons pay gets garnished. I never said to eat beenie weenies or don't move on with life. I just think people should be responsible for themselves and stop looking for bailouts. The current system sucks and anyone paying a little attention in the last 10 years had to hear something about the student loan crisis but yet there they go borrowing up to their eyeballs. We haven't even touched the kids that go for a year or two drop out or kicked out, or take loan after loan to live off while in school and take 15 years to get a degree all the while they borrow every year because they are still going to school I know 2 people who are doing this. But the first 5-10 years are your lowest paying and most expensive. Garnishment when they're just starting to earn decent money? Without addressing the interest rate on no risk loans? I'd rather people spend those first years insuring the heck out of themselves for health and disability and saving up an emergency fund and start saving for retirement. No one is getting out of student loans. They're not forgiven till you die. Being more punitive on borrowers will not fix our problem. Agreed on the lowest paying years. These are the same people that are buying 2 or 3 mid priced cars in that timeframe. We all can go round and round about this. The student loan system is messed up can anyone answer how did or why did it get this way. What is the correlation to the price of college to it. It seems that tuition prices went thru the roof in the last 30 yrs. Easy to raise prices when money is handed out like viagra
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nidena
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Post by nidena on May 20, 2022 20:01:04 GMT -5
But the first 5-10 years are your lowest paying and most expensive. Garnishment when they're just starting to earn decent money? Without addressing the interest rate on no risk loans? I'd rather people spend those first years insuring the heck out of themselves for health and disability and saving up an emergency fund and start saving for retirement. No one is getting out of student loans. They're not forgiven till you die. Being more punitive on borrowers will not fix our problem. Agreed on the lowest paying years. These are the same people that are buying 2 or 3 mid priced cars in that timeframe. We all can go round and round about this. The student loan system is messed up can anyone answer how did or why did it get this way. What is the correlation to the price of college to it. It seems that tuition prices went thru the roof in the last 30 yrs. Easy to raise prices when money is handed out like viagraAnd paying for it (or paying off student loans) is like trying to get a hysterectomy at 26 with no kids and no husband. (Not sure if I want to lol or have a sad face at the dichotomy)
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scgal
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Post by scgal on May 20, 2022 20:09:08 GMT -5
Agreed on the lowest paying years. These are the same people that are buying 2 or 3 mid priced cars in that timeframe. We all can go round and round about this. The student loan system is messed up can anyone answer how did or why did it get this way. What is the correlation to the price of college to it. It seems that tuition prices went thru the roof in the last 30 yrs. Easy to raise prices when money is handed out like viagraAnd paying for it (or paying off student loans) is like trying to get a hysterectomy at 26 with no kids and no husband. (Not sure if I want to lol or have a sad face at the dichotomy) Is it thou? I did it, my kid did it, my brother did it. Husband paid his courses as he went. I have a cousin that is a OB she graduated with just under 100k abiet she had a 20k gift everything else she worked as she went. Had it paid off in 4 years. Now of course to be fair I have several cousins that have student loans for many years just lingering around, but those nice 4 door jeeps, cruises and mcmansions are more important.
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raeoflyte
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Post by raeoflyte on May 21, 2022 7:22:53 GMT -5
And paying for it (or paying off student loans) is like trying to get a hysterectomy at 26 with no kids and no husband. (Not sure if I want to lol or have a sad face at the dichotomy) Is it thou? I did it, my kid did it, my brother did it. Husband paid his courses as he went. I have a cousin that is a OB she graduated with just under 100k abiet she had a 20k gift everything else she worked as she went. Had it paid off in 4 years. Now of course to be fair I have several cousins that have student loans for many years just lingering around, but those nice 4 door jeeps, cruises and mcmansions are more important. I'm glad your life has been so awesome. Mine has too which Im grateful for. But I know that I'm damn lucky in so many ways that I don't apply my life experience as a blanket how to guide. Just because someone struggles doesn't mean they're a failure.
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scgal
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Post by scgal on May 21, 2022 7:31:26 GMT -5
Is it thou? I did it, my kid did it, my brother did it. Husband paid his courses as he went. I have a cousin that is a OB she graduated with just under 100k abiet she had a 20k gift everything else she worked as she went. Had it paid off in 4 years. Now of course to be fair I have several cousins that have student loans for many years just lingering around, but those nice 4 door jeeps, cruises and mcmansions are more important. I'm glad your life has been so awesome. Mine has too which Im grateful for. But I know that I'm damn lucky in so many ways that I don't apply my life experience as a blanket how to guide. Just because someone struggles doesn't mean they're a failure. Absolutely not awesome....great now but we / I have had our times of struggle, in spite of that I always say I'm blessed. I don't consider my life as a blanket to others and I sure don't consider them a failure. In the topic of this forum there is more a person can do to help themselves out of debt than to just blame the system. The system is a failure I happen to think most people push the debt off because they cannot see it everyday like a car, or the excitement of a vacation, or the pool in the back yard.
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raeoflyte
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Post by raeoflyte on May 21, 2022 8:06:02 GMT -5
I'm glad your life has been so awesome. Mine has too which Im grateful for. But I know that I'm damn lucky in so many ways that I don't apply my life experience as a blanket how to guide. Just because someone struggles doesn't mean they're a failure. Absolutely not awesome....great now but we / I have had our times of struggle, in spite of that I always say I'm blessed. I don't consider my life as a blanket to others and I sure don't consider them a failure. In the topic of this forum there is more a person can do to help themselves out of debt than to just blame the system. The system is a failure I happen to think most people push the debt off because they cannot see it everyday like a car, or the excitement of a vacation, or the pool in the back yard. But your more interested in blaming the borrowers then the behemoths that created the mess. Of course people do stupid things with their money. This board is probably 50/50 of all good decisions led them here and the other half found their way here trying to dig their way out. There are people who navigate student loans without problems. The ideal of the system as designed. But that doesn't mean the system isn't a problem. I truly can't comprehend how private student loans are allowed to exist as-is, but they do. Your focus is on the wrong place. It reads to me like you want to keep punishing the borrowers because some might buy a nicer house or car if they have lower student loan payments. Only by struggling and deprivation can someone deserve a comfortable life. You paid your dues so no one else should get a break (or in this case an ethical student loan system).
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nidena
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Post by nidena on May 21, 2022 11:17:00 GMT -5
And paying for it (or paying off student loans) is like trying to get a hysterectomy at 26 with no kids and no husband. (Not sure if I want to lol or have a sad face at the dichotomy) Is it thou? I did it, my kid did it, my brother did it. Husband paid his courses as he went. I have a cousin that is a OB she graduated with just under 100k abiet she had a 20k gift everything else she worked as she went. Had it paid off in 4 years. Now of course to be fair I have several cousins that have student loans for many years just lingering around, but those nice 4 door jeeps, cruises and mcmansions are more important. Me? Hell no! I had $6000 in SLs (and that was only because the Financial Aid person effed up) and paid them off in 2020. I'm prior military. Sucking off the govt teat in the form of GI Bill and Yellow Ribbon program in exchange for the 20 years that I gave them. But I have numerous friends who have SLs that couldn't get a well-paying job right out of college and so their balances ballooned. Then there are others who started college, got loans, but due to life and the demands of being a grownup, never finished but still have the SLs and haven't been able to pay on them because, well, life. I would say that easily half my friends have student loans. None live in McMansions. Well, some do but they're in their 60s and had gone back to school later in life. Another friend is in her 70s, took out loans in her 40s, has been a minister, and is currently unemployed because her position didn't transfer when the place she was working was bought out. Her $25k loan balance from the late 1990s is now $50k+ and she lives off Social Security.
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scgal
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Post by scgal on May 22, 2022 7:09:21 GMT -5
Absolutely not awesome....great now but we / I have had our times of struggle, in spite of that I always say I'm blessed. I don't consider my life as a blanket to others and I sure don't consider them a failure. In the topic of this forum there is more a person can do to help themselves out of debt than to just blame the system. The system is a failure I happen to think most people push the debt off because they cannot see it everyday like a car, or the excitement of a vacation, or the pool in the back yard. But your more interested in blaming the borrowers then the behemoths that created the mess. Of course people do stupid things with their money. This board is probably 50/50 of all good decisions led them here and the other half found their way here trying to dig their way out. There are people who navigate student loans without problems. The ideal of the system as designed. But that doesn't mean the system isn't a problem. I truly can't comprehend how private student loans are allowed to exist as-is, but they do. Your focus is on the wrong place. It reads to me like you want to keep punishing the borrowers because some might buy a nicer house or car if they have lower student loan payments. Only by struggling and deprivation can someone deserve a comfortable life. You paid your dues so no one else should get a break (or in this case an ethical student loan system). Thanks this reply very well written I wish I could do better than ramble my thoughts on keyboard. I do believe the system is wonky and needs a serious overhaul. I recall in one of my posts I would like to see a study done on the student loan debt to people on how they basically spend their money. I'm not talking about punishing people but holding them accountable. We talk all over this board about digging out of debt, savings, sacrificing to save. Is it unreasonable to think that people should sacrifice to pay off student debt no matter how bad the system is?
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scgal
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Post by scgal on May 22, 2022 7:28:27 GMT -5
Is it thou? I did it, my kid did it, my brother did it. Husband paid his courses as he went. I have a cousin that is a OB she graduated with just under 100k abiet she had a 20k gift everything else she worked as she went. Had it paid off in 4 years. Now of course to be fair I have several cousins that have student loans for many years just lingering around, but those nice 4 door jeeps, cruises and mcmansions are more important. Me? Hell no! I had $6000 in SLs (and that was only because the Financial Aid person effed up) and paid them off in 2020. I'm prior military. Sucking off the govt teat in the form of GI Bill and Yellow Ribbon program in exchange for the 20 years that I gave them. But I have numerous friends who have SLs that couldn't get a well-paying job right out of college and so their balances ballooned. Then there are others who started college, got loans, but due to life and the demands of being a grownup, never finished but still have the SLs and haven't been able to pay on them because, well, life. I would say that easily half my friends have student loans. None live in McMansions. Well, some do but they're in their 60s and had gone back to school later in life. Another friend is in her 70s, took out loans in her 40s, has been a minister, and is currently unemployed because her position didn't transfer when the place she was working was bought out. Her $25k loan balance from the late 1990s is now $50k+ and she lives off Social Security. Thank you for your service, I truly mean that I know several women who served none that i've known to do a full 20. You are right life happens I believe part of that is factoring the student loan payment as a priority to paying rent or mortgage. Actually I believe any debt should be treated like this. Your friend that had the 25k debt for 30 years is one of the problems I see. She must have kicked the can down the road to the dead end. I find it hard to believe that it went that long without using deferment. A 25k loan at 10% personal rate for 10 years would be under 300 a month. Maybe all colleges should require economics or a course on how to repay student loans.
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Mardi Gras Audrey
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Post by Mardi Gras Audrey on May 22, 2022 10:32:17 GMT -5
Me? Hell no! I had $6000 in SLs (and that was only because the Financial Aid person effed up) and paid them off in 2020. I'm prior military. Sucking off the govt teat in the form of GI Bill and Yellow Ribbon program in exchange for the 20 years that I gave them. But I have numerous friends who have SLs that couldn't get a well-paying job right out of college and so their balances ballooned. Then there are others who started college, got loans, but due to life and the demands of being a grownup, never finished but still have the SLs and haven't been able to pay on them because, well, life. I would say that easily half my friends have student loans. None live in McMansions. Well, some do but they're in their 60s and had gone back to school later in life. Another friend is in her 70s, took out loans in her 40s, has been a minister, and is currently unemployed because her position didn't transfer when the place she was working was bought out. Her $25k loan balance from the late 1990s is now $50k+ and she lives off Social Security. Thank you for your service, I truly mean that I know several women who served none that i've known to do a full 20. You are right life happens I believe part of that is factoring the student loan payment as a priority to paying rent or mortgage. Actually I believe any debt should be treated like this. Your friend that had the 25k debt for 30 years is one of the problems I see. She must have kicked the can down the road to the dead end. I find it hard to believe that it went that long without using deferment. A 25k loan at 10% personal rate for 10 years would be under 300 a month. Maybe all colleges should require economics or a course on how to repay student loans. I’m sure some people are living “high on the hog”but I would guess most aren’t. I can give you a real example and you can tell me how to make the math work... I went to grad school a few years ago (graduated 2013). The cost of attendance was ~$55k a year. Most got no grants, as it was grad school. So we got grad plus loans which had an interest rate of 6.75% (mortgage rates at the time were ~4.25%). So most of my classmates took out loans for the whole cost, so $220k (this was a full time health profession program so no working full time while going). The monthly payment on $220k over 25 years is $1520. I bring home $5000 a month net (I do max my 401k, pay medical insurance, and have a $5k/year dependent fsa taken out but the rest is taxes. I have 2 kids and daycare (so I can work) is ~$2k a month (a center that is mid price point for our area... no private nanny or anything like that). So $5k- $2k-$1500= $1500 a month for housing/food/transport/clothing/medical deductibles/diapers, etc for my family. Student loan interest wouldn’t be tax deductible and I wouldn’t qualify for daycare subsidies with my income. I guess I could put off having kids until the 25 year loan is paid off. That puts me at trying for kids in my 40s, which increases the risk of the pregnancy and can have fertility issues, costing more $$. I drive a 2015 Toyota sedan (only reason my car is that new is because my 2005 Toyota sedan was totaled in an accident a few years ago). I could cut back the 401k but then I get to not starting to save for retirement until loans are paid? So don’t start until mid 40s? And sacrifice employer Match? Full disclosure: I was lucky snd have no loans (used the GI bill to pay for school due to my military time). That did put me in my thirties when I went to school but this is what my classmates would be looking at. I work full time and my salary is competitive. Luckily, my DH works and his salary helps but that is the math my classmates would be looking at
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nidena
Senior Member
Joined: Dec 28, 2010 20:32:26 GMT -5
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Post by nidena on May 22, 2022 10:40:20 GMT -5
Me? Hell no! I had $6000 in SLs (and that was only because the Financial Aid person effed up) and paid them off in 2020. I'm prior military. Sucking off the govt teat in the form of GI Bill and Yellow Ribbon program in exchange for the 20 years that I gave them. But I have numerous friends who have SLs that couldn't get a well-paying job right out of college and so their balances ballooned. Then there are others who started college, got loans, but due to life and the demands of being a grownup, never finished but still have the SLs and haven't been able to pay on them because, well, life. I would say that easily half my friends have student loans. None live in McMansions. Well, some do but they're in their 60s and had gone back to school later in life. Another friend is in her 70s, took out loans in her 40s, has been a minister, and is currently unemployed because her position didn't transfer when the place she was working was bought out. Her $25k loan balance from the late 1990s is now $50k+ and she lives off Social Security. Thank you for your service, I truly mean that I know several women who served none that i've known to do a full 20. You are right life happens I believe part of that is factoring the student loan payment as a priority to paying rent or mortgage. Actually I believe any debt should be treated like this. Your friend that had the 25k debt for 30 years is one of the problems I see. She must have kicked the can down the road to the dead end. I find it hard to believe that it went that long without using deferment. A 25k loan at 10% personal rate for 10 years would be under 300 a month. Maybe all colleges should require economics or a course on how to repay student loans. I don't know how it got to the point that it did for her. I do know they were garnishing her paychecks back in 2018 and those weren't large to begin with. I think the $300/mo garnishment was 25% of her monthly net. As a minister, she made very little.
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Deleted
Joined: Apr 18, 2024 20:54:36 GMT -5
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Post by Deleted on May 22, 2022 11:20:32 GMT -5
Some interesting figures from the Kiplinger Letter:
With the exception of the over-50s who borrowed for training for a second career, it looks like some have been kicking the can down the road. Or maybe they're following the Phil script and making minimum payments so they can invest spare money at a higher rate- but many of those government-guaranteed loans give the government the right to garnish your SS payments for unpaid student loan debts.
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scgal
Well-Known Member
Joined: Sept 18, 2020 16:56:48 GMT -5
Posts: 1,283
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Post by scgal on May 22, 2022 11:47:44 GMT -5
Thank you for your service, I truly mean that I know several women who served none that i've known to do a full 20. You are right life happens I believe part of that is factoring the student loan payment as a priority to paying rent or mortgage. Actually I believe any debt should be treated like this. Your friend that had the 25k debt for 30 years is one of the problems I see. She must have kicked the can down the road to the dead end. I find it hard to believe that it went that long without using deferment. A 25k loan at 10% personal rate for 10 years would be under 300 a month. Maybe all colleges should require economics or a course on how to repay student loans. I’m sure some people are living “high on the hog”but I would guess most aren’t. I can give you a real example and you can tell me how to make the math work... I went to grad school a few years ago (graduated 2013). The cost of attendance was ~$55k a year. Most got no grants, as it was grad school. So we got grad plus loans which had an interest rate of 6.75% (mortgage rates at the time were ~4.25%). So most of my classmates took out loans for the whole cost, so $220k (this was a full time health profession program so no working full time while going). The monthly payment on $220k over 25 years is $1520. I bring home $5000 a month net (I do max my 401k, pay medical insurance, and have a $5k/year dependent fsa taken out but the rest is taxes. I have 2 kids and daycare (so I can work) is ~$2k a month (a center that is mid price point for our area... no private nanny or anything like that). So $5k- $2k-$1500= $1500 a month for housing/food/transport/clothing/medical deductibles/diapers, etc for my family. Student loan interest wouldn’t be tax deductible and I wouldn’t qualify for daycare subsidies with my income. I guess I could put off having kids until the 25 year loan is paid off. That puts me at trying for kids in my 40s, which increases the risk of the pregnancy and can have fertility issues, costing more $$. I drive a 2015 Toyota sedan (only reason my car is that new is because my 2005 Toyota sedan was totaled in an accident a few years ago). I could cut back the 401k but then I get to not starting to save for retirement until loans are paid? So don’t start until mid 40s? And sacrifice employer Match? Full disclosure: I was lucky snd have no loans (used the GI bill to pay for school due to my military time). That did put me in my thirties when I went to school but this is what my classmates would be looking at. I work full time and my salary is competitive. Luckily, my DH works and his salary helps but that is the math my classmates would be looking at Thanks for your service. I guess the devil is in the details. First is the cost college here in the US is crazy high. Knowing that the price of the grad school is that high and it is grad school your classmates must have some sort of financial education to make an educated decision if it is worth it to them proceed. That is a personal choice. If they have high outstanding debt that is still on them no matter what that debt is and shouldn't be forgiven. Thankfully your situation is different. Even so your retirement, working while kids are young etc...are all your personal decisions.
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pulmonarymd
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Joined: Feb 12, 2020 17:40:54 GMT -5
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Post by pulmonarymd on May 22, 2022 12:18:08 GMT -5
You don’t get it. Many careers require advanced degrees. Licensing bodies require it. If you don’t get one, you go nowhere. According to you, the only people who can get these degrees are those who are rich
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Mardi Gras Audrey
Senior Member
So well rounded, I'm pointless...
Joined: Dec 25, 2010 18:49:31 GMT -5
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Post by Mardi Gras Audrey on May 22, 2022 12:35:28 GMT -5
You don’t get it. Many careers require advanced degrees. Licensing bodies require it. If you don’t get one, you go nowhere. According to you, the only people who can get these degrees are those who are rich This!! My school was a public school and the cost for our degree program was actually very reasonable (private school tuition for the same degree st that time were 2.5 to 3 times higher). They offered no financial aid either (I applied to both private snd public schools since the admission rates were low for all the schools). I got lucky and got accepted to a public school but many didn’t. Our degree is required for our field. Most of the new grads were women. You can’t have people “holding their lives” for 25 years. That impacts families. I guess you could tell people to wait until their forties to start having families or could just say not our problem and let the fields (healthcare, social work, teachers, etc) go empty. That will go well as the boomers age and there is no one to take care of them.
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pulmonarymd
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Post by pulmonarymd on May 22, 2022 13:56:22 GMT -5
You don’t get it. Many careers require advanced degrees. Licensing bodies require it. If you don’t get one, you go nowhere. According to you, the only people who can get these degrees are those who are rich This!! My school was a public school and the cost for our degree program was actually very reasonable (private school tuition for the same degree st that time were 2.5 to 3 times higher). They offered no financial aid either (I applied to both private snd public schools since the admission rates were low for all the schools). I got lucky and got accepted to a public school but many didn’t. Our degree is required for our field. Most of the new grads were women. You can’t have people “holding their lives” for 25 years. That impacts families. I guess you could tell people to wait until their forties to start having families or could just say not our problem and let the fields (healthcare, social work, teachers, etc) go empty. That will go well as the boomers age and there is no one to take care of them. Yes. People don’t get it. The fields have high barriers to entry. Delaying until you can “afford” it significantly shortens careers. Given how much it costs to educate people for these fields, something has to give. Or, we can decrease requirements, but that may not work out do well
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