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According to one study, most Federal student loan debt will never be repaid:
"According to Steinbaum, the ever-increasing cost of college combined with decreased state funding of higher education, stagnant wages, and more higher education requirements to attain any job at all mean more and more people need to take on more and more student loan debt to live a middle class life. But with wages not keeping up with the cost of higher education, more borrowers are unable to repay their balances, carrying the debt longer and "impairing economic wellbeing for a widening and diversifying swathe of the population, inhibiting savings, increasing precarity, and draining the very incomes the student debt was supposed to increase."
That article talks in terms of "much" and "many". Much of the loans will not be paid back because many of the borrowers can't afford to make multi hundred monthly loan payments.
It doesn't really say that *most* borrowers will default on their loans, only that many will, which they were probably doing before all of this. Nothing has really changed for them.
Some clearly took money that they had no intention of ever paying back. That doesn't mean that most student loan borrowers did that. But some did.
Sounds accurate. But evidently they're standing on principle, which in this case is probably not the best choice.
What principle is that?
Other people should subsidize my housing, cars, and trips to Cancun?
Quote:
Originally Posted by Wile E. Coyote
On the other hand, education should be more affordable (and you would have a much more educated workforce).
It is affordable and your statement is contrary to the Laws of Economics.
In 1980, the University of Cincinnati was $2,800/year. Today it's $13,800/year.
Before screaming "inflated" make sure you do a point-by-point comparison, because in 1980, only professors had desktops. TAs and RAs had none. No one had laptops. Professors, TAs/RAs did not have smart-phones from the university. Maintenance and grounds-staff had walkie-talkies and not smart phones. None of the classrooms were connected to anything. There was no Wi-Fi. There were no "remedial" courses offered for people who should never have been admitted to the university in the first place. There was no 32-person Office of DEI or any other silly non-academic offices.
I could go on and on, but I'm hoping you get the point. It's not different people screaming housing about prices and then showing that the price per square foot of the standard 960 sq ft home in the 1950s in on a par with the price per square foot of the standard 2,600 sq ft home today.
Quote:
Originally Posted by Wile E. Coyote
Some people just forgo higher education because they are unable to afford it (and end up paying taxes for others who are receiving the benefits of higher education in the case of student loan forgiveness).
Everyone can afford it. They just refuse to do what needs to be done to afford.
That includes working while going to school. It includes going part-time and working full-time.
There is no law that says you have to go to 4-year school. You can go to a cheaper 2-year school and transfer.
And not all 4-year schools cost the same but if people insist on going to the most expensive 4-year school that's on them.
According to one study, most Federal student loan debt will never be repaid:
"According to Steinbaum, the ever-increasing cost of college combined with decreased state funding of higher education, stagnant wages, and more higher education requirements to attain any job at all mean more and more people need to take on more and more student loan debt to live a middle class life. But with wages not keeping up with the cost of higher education, more borrowers are unable to repay their balances, carrying the debt longer and "impairing economic wellbeing for a widening and diversifying swathe of the population, inhibiting savings, increasing precarity, and draining the very incomes the student debt was supposed to increase."
The above is just not true. The median monthly repayment is less than $200 per month. The vast majority of student loan holders can easily afford $200 per month. Don't forget the maximum federal loan amount, for undergraduates, is $26000. Even for those graduating with less in demand majors the repayment is affordable.
The above is just not true. The median monthly repayment is less than $200 per month. The vast majority of student loan holders can easily afford $200 per month. Don't forget the maximum federal loan amount, for undergraduates, is $26000. Even for those graduating with less in demand majors the repayment is affordable.
Makes you wonder why this has ballooned into such a national crisis.
Makes you wonder why this has ballooned into such a national crisis.
Yes it does. The young adults from 20-30 undoubtedly have an entitled perspective. Us parents are to blame. My kids all went to privates and they complain about their "debt burden"! I crackup when I hear my oldest complain about her $210 per month repayment schedule after she has returned from her fourth trip to God knows where!
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,690 posts, read 57,994,855 times
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Quote:
Originally Posted by Slater
Makes you wonder why this has ballooned into such a national crisis.
That's no secret.... Politics / buying votes
Been happening ever since political office has feathered the pockets of special interest causes.
Ever hear of Pork Barrel?
USA civics class, 9th grade.
BTW, college debt is not a national crisis, only publicized as such. Sells more media during off cycle election years when media is starving for income / readers.
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