About That Student Loan Forgiveness....

[Monello]

I feel for today's students. They're paying way too much and getting too little.

The ones that choose a major wisely, and don't spend their loan money on spring break to Mexico should be just fine once they graduate and get a job.

It's the one's that financed 4 years of living and didn't bother to work or economize during their school days that will struggle with the loan debt.

 

[SamSpade]

The ones that choose a major wisely, and don't spend their loan money on spring break to Mexico should be just fine once they graduate and get a job.

It's the one's that financed 4 years of living and didn't bother to work or economize during their school days that will struggle with the loan debt.

But I've already demonstrated that - if you choose engineering - your debt will equal at MINIMUM a year's salary, assuming you were somehow able to cover room and board with a job, which is somewhat possible.

(I say "somewhat" because *I* struggled with my job going through school, and I lived in a drafty dump with four roommates and biked to school 5 miles away).

And that is the BEST case scenario I can think of - many of today's graduates aren't working at a job in their profession for at least half a year.

I'm not arguing for or against "forgiveness" - my point is that today's graduates are getting WAY less bang for their buck EVEN WITH THE BEST SCENARIO POSSIBLE. When I attended, the cost per credit hour was 35-40 dollars. Today, it's 300. Yup. ONE 3-credit course sets you back at least a thousand, with books and fees (and books are ridiculous - hundred bucks each, easy). There's also mandatory fees. One 12 credit semester at UofM is over 7k. 14k a year. And you'll average 15 credits a semester at least, if you want to graduate.

My first semester cost at Maryland was ~500 bucks.

How many things can you think of that now cost ten times more than they did forty years ago? And WORTH less?

 

[Monello]

But I've already demonstrated that - if you choose engineering - your debt will equal at MINIMUM a year's salary, assuming you were somehow able to cover room and board with a job, which is somewhat possible.

When I got out of the service and went to work as a defense contractor, I switched career fields from supply to IT. I started at the bottom with the recent college grads as far as salary and position. In around 3-4 years I had doubled my salary with annual raises and promotions. Getting in the right line of works sure goes a long way into chipping away at that debt.

I think a big part of the issue is that some students finance 4 years of their life. So it's not just books and tuition. That's how they end up with those enormous debt amounts.

 

[Clem72]

I think a big part of the issue is that some students finance 4 years of their life. So it's not just books and tuition. That's how they end up with those enormous debt amounts.

Yup. Always the same story, how can I focus on my drinki..err studies if I don't live in the dorms or an adjacent apartment. What do you mean get a job, I have so many homeworks!

 

[SamSpade]

When I got out of the service and went to work as a defense contractor, I switched career fields from supply to IT. I started at the bottom with the recent college grads as far as salary and position. In around 3-4 years I had doubled my salary with annual raises and promotions. Getting in the right line of works sure goes a long way into chipping away at that debt.

I think a big part of the issue is that some students finance 4 years of their life. So it's not just books and tuition. That's how they end up with those enormous debt amounts.

I don't doubt that happens. What I AM saying is, this BEST CASE scenario has an engineering student at the local state university coughing up 56-60 k (because ADDITIONAL fees are tacked on junior and senior years). And that totally leaves all out eating and rent and stuff. Like paying the electric bill.

That's to say nothing of the countless numbers of students majoring in everything from English, Business, Economics, Education or History.
They DO NOT have as promising a salary path as IT or engineering. Ask any teacher in the county.

And everyone can't be an engineer, nor should they.

College - costs - too - much. The problem is that most professional careers REQUIRE them.
And don't go all "learn a trade". Not everyone can be a plumber or bricklayer. We need teachers, and nurses and - well anything requiring a degree.
I used to work at a trade - I was a carpenter - and a roofer - and I still got paid crap. I got MONEY when I became a programmer.

There HAS TO EMERGE a new way to train the next generation, because the way we do it just costs too much.

 

[ArkRescue]

It never said what the degree was in or jobs she worked, only that she eventually got a govt job.

Aren't Masters degrees only about 20K .?

The story did say the person had 2 Masters Degrees. But STILL .... half a million dollars?!

 

[herb749]

Try to think of a GOOD paying job - say an Engineer. Starting salary between 48-65k.

To have anything resembling MY costs in 1982, total cost for four years would have to be about 11k. For all four years. Good luck.

Fact is STILL that college costs have risen way faster than starting salaries even in the BEST jobs.

They sure are. Problem is many of these kids are using these loans on more than college.

 

[herb749]

Yup. Always the same story, how can I focus on my drinki..err studies if I don't live in the dorms or an adjacent apartment. What do you mean get a job, I have so many homeworks!

My oldest worked in supermarkets or Home Depot to supplement his needs. Another worked as a waiter or bartender. My nephew who became an engineer worked for Lowe's.

 

[SamSpade]

They sure are. Problem is many of these kids are using these loans on more than college.

(sigh)

It doesn't matter. If the loans are ONLY USED for *exactly* what they're intended for, they're STILL VERY likely to be close to impossible to pay back.
IF you're lucky, it will only cost you a year's salary but probably will cost more.

I already showed that for one of the best jobs coming out of college, and ONLY COUNTING tuition and fees but not counting books and all living expenses - you know like, food, a place to stay - it's still obscenely high.

I do think I've adequately shown it is STILL TOO MUCH even if you do everything right. You will still come out owing the cost a small starter home - which the rest of us typically pay for in 20-30 years.

 

[SamSpade]

My oldest worked in supermarkets or Home Depot to supplement his needs. Another worked as a waiter or bartender. My nephew who became an engineer worked for Lowe's.

And I also worked in a restaurant. And because to become an engineer, you actually have to STUDY and READ, you can either cut down the hours or not do so great on courses or possibly - just take even longer to graduate.

The problem is - it costs too much. In terms of what it costs versus what you will be able to pay back - if you are lucky it may only take you a couple decades to pay back. Whereas in an earlier life, maybe three or four years of very non-onerous payments.

 

[Merlin99]

(sigh)

It doesn't matter. If the loans are ONLY USED for *exactly* what they're intended for, they're STILL VERY likely to be close to impossible to pay back.
IF you're lucky, it will only cost you a year's salary but probably will cost more.

I already showed that for one of the best jobs coming out of college, and ONLY COUNTING tuition and fees but not counting books and all living expenses - you know like, food, a place to stay - it's still obscenely high.

I do think I've adequately shown it is STILL TOO MUCH even if you do everything right. You will still come out owing the cost a small starter home - which the rest of us typically pay for in 20-30 years.

What is the interest rate on these loans?

 

[SamSpade]

What is the interest rate on these loans?

Typically between 4 and 6%.

 

[my-thyme]

And DIL just told me, because of the freeze on required payments, all the payments she has made for the last 2 1/2 yrs have been interest free.

All money went to principle. Who wouldn't have taken advantage of that? Her loan is now almost paid off.

 

[PrchJrkr]

And DIL just told me, because of the freeze on required payments, all the payments she has made for the last 2 1/2 yrs have been interest free.

All money went to principle. Who wouldn't have taken advantage of that? Her loan is now almost paid off.

Acting responsibly should be rewarded. Good on her.