Student Loans Debt

[AGDee]

Since the length of time to find a "real" job after graduation is getting longer and longer (last I heard it was around 9 months and that was before the more recent downturns), I could see them deferring them longer, or not charging interest while one is laid off, or making some measures like that. But completely forgiving them seems counter productive. College grads are still in a much better position than non college grads. As we're moving away from manufacturing, it's the non-college grads who need job training, etc.

I'm getting kind of tired of hearing people who have two working adults (spouses, whatever) in the home saying "Where's my bailout?" because, in reality, they do not need one! If they do, it's because of their own irresponsibility. I don't need a bailout at this point in time. I believe my job is pretty secure. I spend carefully and save carefully. I'm paying a boatload more in taxes for 2008 than usual because of inheriting IRAs from my mom. I don't expect a handout for no reason just so that I can spend frivolously.

Having programs for people to re-finance out of insane mortgages is one thing. Forgiving loans for those people who are in the best position right now is just silly. That said, I do think teachers who are paid less than $60K or so should get reduced student loans, even on sliding scales for working in various difficult geographic areas. Nurses too, and probably some other "critical need" type jobs. With the shortage of general practice physicians, they should probably qualify too.

[BaltoAlphaPsi]

Originally Posted by AGDee

Since the length of time to find a "real" job after graduation is getting longer and longer (last I heard it was around 9 months and that was before the more recent downturns), I could see them deferring them longer, or not charging interest while one is laid off, or making some measures like that.

I think that's a decent idea.

6 months after graduation is the average amount of time to find a job, and start paying off loans. If you lengthen that to a year, or 18 months, you risk students taking that time off as a large vacation, possibly putting them into a worse situation. Though, it does give time for those harder jobs to find that you may need more time to pay back your loans.




I just feel that, if banks know that at this point in time student loans are almost mandatory for anyone wanting to get their degree, and even MORE likely for grad students, they could help everyone by lowering the interest rates. The government wouldn't need to step in the way people feel they do now, and banks are still making a load of money off of the interest just because people are BORROWING so much money.

Building credit is one of the best things a student can do for themselves, so they need ways to do that. Some credit card companies have stepped in a had great rates and insensitive for current college students. Students also need to learn financial responsibility so they wont be relying on unemployment/welfare for the rest of their lives. (Which ultimately hurts the rest of the country because we're paying taxes for their lazy @$$es)

When I first heard about this petition, i was surprised at the amount of support I saw. But then I thought about how many of my friends (college students) are on unemployment, and It kind of made me think about how lazy this country is. The government get's nothing out of you going to college. So why should the government bail you out of your student loans. The government would get something out of lowering student loans Interest rates because less people would be having difficulty in paying back.

I'm the youngest of 5, all went to college, I'm still in it. My parents told us, they would pay for half of the first 4 years we were in school. After that, we're on our own. So i have loans out, and my parents have loans for me, and when I enter my 5th year (because my program can't really be done in 4) I'll be on my own. Would I love for that year to be free? Duh, who wouldn't. But that's what scholarships are for. And that's why I keep applying for scholarships. I wont be in the worst of shape after i graduate. But my parents have 5 kids worth of loans, 20 years worth of college loans, in 12 years. They consolidate, and they do what they can. But the amount of interest alone is putting them in a serious financial situation.

I think lowering the interest rates can help longer than forgiving student loans. Forgiving student loans just makes people even more lazy, and possibly feel even more entitled to things that they're not entitled. Also, as many people have said, that money could go toward much better things... as long as they are things IN this country. But bailing out student debt will only help one generation of college students, what about the next set of college students? The government can't help everyone get through college, they do what they can, FAFSA, and other ways to get government aid. There are private loans, and as always... just a damn good highschool GPA can do wonders for you!

[KSigkid]

Originally Posted by AGDee

That said, I do think teachers who are paid less than $60K or so should get reduced student loans, even on sliding scales for working in various difficult geographic areas. Nurses too, and probably some other "critical need" type jobs. With the shortage of general practice physicians, they should probably qualify too.

I think things are going that way, at least to a certain degree. From the emails that go out over my law school's listserve, it appears that the new federal loan consolidation programs have an option where you can base your repayment on your income. Now, I don't know whether that significantly drops the starting payments, and I'm guessing you get hit hard on the back end, but it's an option. Plus, there are the loan forgiveness options for teachers and lawyers; I'm not sure which other professions have that sort of program.

I'm not sure how far to stretch the programs though. How do you decide which professions should qualify? Of course, I'm speaking as someone who is going into a profession that has some loan forgiveness, and as someone who was able to us a minimal amount of student loans (through merit and need based scholarships/grants and full-time work proceeds) through undergrad and law school, so take my opinion for what it's worth.

[AGDee]

I can't speak much to student loans either. I never had them. For undergrad, I had a full tuition scholarship, help from parents for room & board and worked for my book/spending money/sorority dues. For grad school, I did it while working full time for employers that had decent tuition reimbursement programs.

[BaltoAlphaPsi]

Originally Posted by AGDee

For grad school, I did it while working full time for employers that had decent tuition reimbursement programs.

If only there were more of those out there :-\ They exist, but are oddly hard to find.

[PhiGam]

Originally Posted by BaltoAlphaPsi

If only there were more of those out there :-\ They exist, but are oddly hard to find.

The military will pay off everything and you'll go in as an officer.

[Munchkin03]

Originally Posted by BaltoAlphaPsi

I think lowering the interest rates can help longer than forgiving student loans.

as always... just a damn good highschool GPA can do wonders for you!

Student loan interest rates are lower than they've ever been; I honestly don't think they can get any better. Mine were at just under 3%; my savings account has a higher interest rate! I figured it made more sense for me to pay that off and put the money I was paying for loans in savings.

Oh yeah...not everyone who does well in school will get scholarships. A lot of colleges do not provide merit aid; some private scholarship organizations look at need before they look at merit to prevent one or two students at the top from taking the most scholarship money. I was in the top 1% of my HS class with a ton of extracurrics, and I got exactly $1,500 in scholarship money. That money was actually connected to an activity I was involved in. Great considering 4 years of tuition was just about $150,000.

[BaltoAlphaPsi]

Originally Posted by Munchkin03

Student loan interest rates are lower than they've ever been; I honestly don't think they can get any better. Mine were at just under 3%; my savings account has a higher interest rate! I figured it made more sense for me to pay that off and put the money I was paying for loans in savings.

But most student loans have variable interest rates that change every 6 months... they could go back up to 8. And that sucks :-( I pay 15,000 a semester for 5 years... plus summer classes

[Munchkin03]

Originally Posted by BaltoAlphaPsi

But most student loans have variable interest rates that change every 6 months... they could go back up to 8. And that sucks :-( I pay 15,000 a semester for 5 years... plus summer classes

Most people get their loans consolidated after school; usually, after a few years of on-time payments, your interest rate will be lowered. Also, if you agree to do automatic debit, your rate could be lowered as well. My loans--federal and private--were NEVER as high as 8 percent; they hovered somewhere around 2.5-5% before I locked them in.

[UGAalum94]

I think one thing that's being left out of this debate is the cost of attending some schools versus others.

If you elect to attend a pricey private school you probably owe somewhere between four and ten times as much money as a public college grad, with no corresponding increase in your salary. (Sure there could be an increase in your salary, but it's probably much more field of study related rather than cost of school related.)

Why should this decision be subsidized by the government at all?

ETA: am I wrong in thinking of it this way? It's not that I want some system that keeps students who can't afford to write a 100,000-200,000 dollar check for their education out of elite schools, and yet, maybe the schools themselves should help the kids finance it? What was Havard's endowment?

[Munchkin03]

Originally Posted by UGAalum94

ETA: am I wrong in thinking of it this way? It's not that I want some system that keeps students who can't afford to write a 100,000-200,000 dollar check for their education out of elite schools, and yet, maybe the schools themselves should help the kids finance it? What was Havard's endowment?

The schools with the largest endowments, and their peer institutions, do finance it for families who don't pay. Most of the Ivies, along with Stanford, MIT, and others, have essentially waived loans for families making under $100,000. If your family makes less than 60K or so, you're not expected to contribute at all.

[UGAalum94]

Originally Posted by Munchkin03

The schools with the largest endowments, and their peer institutions, do finance it for families who don't pay. Most of the Ivies, along with Stanford, MIT, and others, have essentially waived loans for families making under $100,000. If your family makes less than 60K or so, you're not expected to contribute at all.

Sounds great to me.

Maybe it's because I went to a downscale institution, but if a person wants to individually mortgage his or her future to attend Emory over UGA to study Art History at the undergraduate level, I'm down with that. Live your dreams and I hope it's worth the price difference.

But it is odd to think that we'd have federal programs that would help or regulate it.

[Munchkin03]

Originally Posted by UGAalum94

Sounds great to me.

Maybe it's because I went to a downscale institution, but if a person wants to individually mortgage his or her future to attend Emory over UGA to study Art History at the undergraduate level, I'm down with that. Live your dreams and I hope it's worth the price difference.

But it is odd to think that we'd have federal programs that would help or regulate it.

But, you're not borrowing directly from the government. You're taking loans out from a bank; in the event that you completely default (which is next to impossible since they garnish your wages and/or reduce your income tax refund if you don't pay), the government backs it up. Also, since loans can't be discharged in bankruptcy anymore, it's not as if people are shirking their responsibilities. In my mind, it's no different from a VA or FHA mortgage except you can't foreclose on it.

Oh, most people who go to private schools don't "mortgage their future," either, unless they're going to law or medical school.

[texas*princess]

Originally Posted by kddani

Seriously, me too. People, you took on the debt, pay it back. Everyone thinks they are entitled to a bailout of their own. You decided to take on that debt, you signed on the dotted line. Be responsible for your own actions and pay for it.

Not that a facebook petition/online petition is going to be too influential.

I agree.

Why don't we just pay off everyone's mortgages and personal credit cards while we're at it?

Shizz, if they start paying off people's credit cards, I'm taking all 3 of my 0-balance cards out for a joyride and maxing those puppies out!

</sarcasm>

[texas*princess]

Originally Posted by AGDee

That said, I do think teachers who are paid less than $60K or so should get reduced student loans, even on sliding scales for working in various difficult geographic areas.

There is a program - I think it's called something like "Teach for America" - that either reduces or completely pays for college loans for people who enroll in the program and teach for 2-3ish years.