Student debt

junior1

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May 29, 2001
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Here’s an interesting stat….from Wsj article….
8% of people own 40% of the debt ….and since 2017, those who owe $200,000 or more has increased by 69%. That last one is from dept of education. it’s funny that some who want to wipe out $1.6 trillion of debt seem to have forgotten that when the Obama admin sold this to congress, it was going to make money.
 

1Hammers1

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Jan 26, 2014
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I wouldn't be surprised if some can pay but are waiting to see how much they can get. If you borrow money to get a worthless degree you need to be working all 365 days a year before anyone helps you at all. Many with large debt are to good to even pick up a broom.
 

fairfaxlion2

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Oct 12, 2014
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The fact of the matter is, if you have $200,000 in debt and make $70,000 per year, you may be mad at your decision but you actually do have the means to pay it back. And arguably it was even worth it, whether you are annoyed by it or not. The arguments for canceling debt are really weak
 

ao5884

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Oct 1, 2019
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Here’s an interesting stat….from Wsj article….
8% of people own 40% of the debt ….and since 2017, those who owe $200,000 or more has increased by 69%. That last one is from dept of education. it’s funny that some who want to wipe out $1.6 trillion of debt seem to have forgotten that when the Obama admin sold this to congress, it was going to make money.
It takes a special kind of moron to advocate for young people to not be responsible for their bad choices. Coddling young people has created the soft generation we are seeing today.
 
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bdgan

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I wouldn't be surprised if some can pay but are waiting to see how much they can get. If you borrow money to get a worthless degree you need to be working all 365 days a year before anyone helps you at all. Many with large debt are to good to even pick up a broom.
I'm surprised that anybody is makjng payments. Why would anybody pay their student debt when the government has already deferred payments and lowered interest rates to zero?

The 0% interest giveaway is costing the government $60 billion per year in lost interest income.
 

NCHawk55

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Mar 15, 2022
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The fact of the matter is, if you have $200,000 in debt and make $70,000 per year, you may be mad at your decision but you actually do have the means to pay it back. And arguably it was even worth it, whether you are annoyed by it or not. The arguments for canceling debt are really weak
Idk about that. Really depends on where you live. 70k goes a long way in some areas, not so much elsewhere.
 

LionDeNittany

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May 29, 2001
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I wouldn't be surprised if some can pay but are waiting to see how much they can get. If you borrow money to get a worthless degree you need to be working all 365 days a year before anyone helps you at all. Many with large debt are to good to even pick up a broom.

Student debt is one of the cheapest forms of debt.

Many of my colleagues paid the minimum because carry was very low.

People leveraging student loans to play in the stock market is pretty common.

LdN
 
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NCHawk55

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Mar 15, 2022
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so get a roommate

a lot of us had to go through periods where we didn't make a lot and lived in a high cost area. Nobody was bailing us out
I’m not advocating forgiveness. I’m simply pointing out that it’s not exactly cheap to pay off 200k. Default term is 10 years, that puts you at 2k a month just in student loan payments.
 

bdgan

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so get a roommate

a lot of us had to go through periods where we didn't make a lot and lived in a high cost area. Nobody was bailing us out
^^^ this ^^^

Dave Ramsey has a saying "Live like nobody else so that later on in life you can live like nobody else."
 

NCHawk55

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Mar 15, 2022
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Student debt is one of the cheapest forms of debt.

Many of my colleagues paid the minimum because carry was very low.

People leveraging student loans to play in the stock market is pretty common.

LdN
Yikes. That sounds like a very risky thing to do. Not my cup of tea, but if they’re beating their interest rate, good for them.
 

NCHawk55

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Mar 15, 2022
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Less risky than taking out 200k for a degree in communications.

LdN
True. But leveraging with debt that can never legally go away (and I don’t think blanket forgiveness is ever happening) is a poor choice imo. Best to be rid of it ASAP.
 

ao5884

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Oct 1, 2019
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I’m not advocating forgiveness. I’m simply pointing out that it’s not exactly cheap to pay off 200k. Default term is 10 years, that puts you at 2k a month just in student loan payments.
Then don't sign for ant take out the loan. No one said life was easy.
 

fairfaxlion2

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I also heard today 56% of student is held by people with graduate degrees. So blue collar folks are paying for Dr.s a Nd lawyers. I get it. Oy vey!
This is such a stupid idea, that it is guaranteed to backfire on whoever proceeds with it

It should, however, be possible to declare bankruptcy if someone really cannot afford it and needs to get out of it. That is far from the same thing as canceling, and would impose the right discipline up front before the loans are granted.
 

LionDeNittany

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This is such a stupid idea, that it is guaranteed to backfire on whoever proceeds with it

It should, however, be possible to declare bankruptcy if someone really cannot afford it and needs to get out of it. That is far from the same thing as canceling, and would impose the right discipline up front before the loans are granted.

Which student, upon graduation, wouldn't declare bankruptcy in your scenario?

LdN
 

LionDeNittany

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anyone who doesn't want to ruin their credit

If you just graduated from college with $200k of debt and can declare bankruptcy to make it all go away, you'd be a fool to not declare.

Credit upon graduation, despite scores, is just about zero. No landlord is taking in people fresh out of college and saying "Oh this is a good idea".

There's a reason student loans are not voided upon bankruptcy. You're lending money to someone with no income. No job. No money. And then hoping upon completion of college all those things happen.

LdN
 
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fairfaxlion2

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Credit upon graduation, despite scores, is just about zero. No landlord is taking in people fresh out of college and saying "Oh this is a good idea".

I am pretty sure that there are tons of landlords taking in tenants who are just out of college.
 

ao5884

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This is just my experience. I graduated college with no credit. I had never borrowed and I financed both degrees on my own by working full time and going to school full
time. It was easy to get a place to rent but expensive. So I got roommates until I saved enough to buy a house. It was not an easy lifestyle but it can be done through proper planning and sticking to that plan. The problem is most students have been taught to get a degree in something you like to do instead of a degree that has value and can lead to a career. Which is not a good thing to teach them.
 
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ao5884

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Would you rent to someone with limited work history and huge debt?
I would need more info. I currently co own 5 rental properties with my sister, 4 are the standard vacation rentals in Virginia Beach. The other is primary residence of the renter. His credit is absolutely awful....however he pays us a year at a time by his own choice. I know it's not typical...but I could care less about his rating because he pays his rent.
 

NJPSU

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This thread is hilarious. A bunch of Boomers who went to college when you could pay for it by bartending on the weekend complaining about helping the younger generation with 6 figure student loan debt.
 

ao5884

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This thread is hilarious. A bunch of Boomers who went to college when you could pay for it by bartending on the weekend complaining about helpi ng the younger generation with 6 figure student loan debt.
I'm not a boomer bud...my education was not cheap especially my MA. Like I said it's possible it's not easy.
 
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fairfaxlion2

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This thread is hilarious. A bunch of Boomers who went to college when you could pay for it by bartending on the weekend complaining about helping the younger generation with 6 figure student loan debt.

$100,000 in student debt today is the same as $58,000 in 1999.

I am not sure things have really changed all that much. Except that now we have politicians wanting to zero it out (which means making everyone else pay it off; the lenders are not taking a haircut)
 

ao5884

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$100,000 in student debt today is the same as $58,000 in 1999.

I am not sure things have really changed all that much. Except that now we have politicians wanting to zero it out (which means making everyone else pay it off; the lenders are not taking a haircut)
It's like they don't get why it's not wise to absolve young people of their responsibility. Let something actually bad happen...they can't handle words ffs.
 

fairfaxlion2

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It's like they don't get why it's not wise to absolve young people of their responsibility. Let something actually bad happen...they can't handle words ffs.

It's also like they think it is new. I remember people with lots of student loans in the early 2000s, and I'm sure it was true before that as well.
 

roswelllion

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This thread is hilarious. A bunch of Boomers who went to college when you could pay for it by bartending on the weekend complaining about helping the younger generation with 6 figure student loan debt.
Who you make at appointment to see at the lawyer or doctors office. You do infer a good point. How have we allowed college tuition to go up like it has for the last 30 years.
 

LionDeNittany

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This thread is hilarious. A bunch of Boomers who went to college when you could pay for it by bartending on the weekend complaining about helping the younger generation with 6 figure student loan debt.

My bartenders make 1k a week on tips for three days of work.

You think they can't afford college?
 

NJPSU

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May 29, 2001
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$100,000 in student debt today is the same as $58,000 in 1999.

I am not sure things have really changed all that much. Except that now we have politicians wanting to zero it out (which means making everyone else pay it off; the lenders are not taking a haircut)
You don’t think tuition prices have increased at multiples higher than the inflation rate. You would be wrong.

Yes things did change..a lot.
 

bdgan

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This thread is hilarious. A bunch of Boomers who went to college when you could pay for it by bartending on the weekend complaining about helping the younger generation with 6 figure student loan debt.
Your response is ignorant. A lot of us recently had kids in college.

I have two kids. One had good scholarships. The other started out at a 2 year school then finished at a state school. Both are doing quite well and neither one of them accumulated 6 figure student debt.
 
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bdgan

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Yes things did change..a lot.
Agree. Now we have a lot of kids borrowing a ton of money to attend expensive private universities where they can major in things like gender studies. Now that they're graduated and working at Starbucks they expect others to pay for their poor choices.
 
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KnightWhoSaysNit

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You don’t think tuition prices have increased at multiples higher than the inflation rate. You would be wrong.

Yes things did change..a lot.

You do realize that the reason tuition went up the way it did was, like everything else, through "easy money."

Forgiving loans isn't fair to those who paid, and it certainly isn't fair to future students who will pay even more as loans are forgiven.

This is the typical band-aid, vote-buying response of the Democrats. They ignore the root cause of the problem and implement a "fix" that only makes matters worse.

If you were foolish enough to go to college for a degree that makes it difficult to pay back a loan then you made a bad choice. Others should not be paying for that bad choice.

Educators would love to see this. It's more money for them down the road without doing anything about the problem while shoveling it onto the laps of those who get nothing but become the ultimate payers -- through taxes or higher inflation.
 
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Op2

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You don’t think tuition prices have increased at multiples higher than the inflation rate. You would be wrong.

Yes things did change..a lot.

Saying "tuition prices have increased at multiples higher than the inflation rate" makes is passive, as if it's something that just happened and nobody had control over. A more accurate way to say it is "colleges have increased tuition prices at multiples higher than the inflation rate." In addition to being more accurate, putting it that way shows where some of the blame should go.

Having the government give the loans did nothing but incentivize the colleges to rip people off, which is exactly what they did, as evidenced by the fact that many of the loan-takers aren't earning enough to pay off what the colleges charged them. The colleges should buy the loans from the government. Then, if the colleges want to forgive the loans, they can. And if they don't (and they won't) the peoples' ire will be where it should have been all along.
 
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