Forgive Student Loan Debt to Stimulate the Economy

[The Beast]

Perhaps you haven't noticed but there are tens of thousands of students, if not more, that graduated in the last 2 years with absolutely no hope to land a decent paying job any time soon.

Is this because they picked a bulls*** degree? Or are you saying that generally speaking they haven't found a decent paying job because of the economy?

Can't get to the site but my thoughts are the same as the mortgage forgiveness, why should they benefit? I worked to put myself through school in a major I was not really fond of but it got me a good paying job and a nice career.

Before I started taking college seriously, I was debating what to study and spent more money than I needed to on classes that I won't need in the end. Had I been a bit more responsible I would have worked and gone to the community college first. I too am now putting myself through a major that I'm not entirely fond of but I am enjoying the challenge of it all in business management. I think it makes a lot of sense to go to school in order to get a good return on your investment.

Yes, I have noticed. There has been a switch recently. When my parents were growing up, it was all about graduating from high school. Then, it turned into you have to graduate from college to get a decent job (my age group). Now, it has switched to you need even higher education than that or you need to make sure you choose the correct area to go into. I think that we are now going to the days where you can't just go into anything that you want, or what you like. You may have to go into an area that you are not crazy about to land a good job. That seems to be what my grandparents grew up with. They didn't pick and choose where they went for a job, they were happy to have a job that paid the bills.

 

Now, honestly, I am a bit removed from the college grads these days. So, I don't know if they are choosing their majors based upon what is out there or if they are just following their interests. I'm not in that position, so I don't know. I could be completely off-base and would apologize if so. However, IMO, the answer should be a combination of letting people know that they can't just go into whatever they decide on a whim as well as finding ways to lower the cost of education. How does this in any way lower the cost of education?

I especially agree on the bolded part of your post. I can't just waste my time chasing a dream that's a long shot when there are more qualified graduates out there than me. I'm doing a mix of both at the moment as I'm trying to complete a marketable degree in business while looking out for opportunities in the sports industry. If that doesn't work out, at the very least my degree is from a liberal arts college. What I was told is that if you go into the liberal arts you could go into anything, hence my career ideas as a cop, fireman, PR manager (for the White Sox and Bears of course), something in insurance or a high school guidance counselor.

Edited February 2, 2010 by The Beast

[mr_genius]

and where are we going to get the money to pay off every single student loan out there?

 

also, is this an endless forgiving of loans? why should certain people get a pass while everyone before and after has to pay?

Edited February 2, 2010 by mr_genius

[iamshack]

and where are we going to get the money to pay off every single student loan out there?

 

also, is this an endless forgiving of loans? why should certain people get a pass while everyone before and after has to pay?

That's not what Obama is suggesting.

He's saying loan payments should be limited to 10% of wages over a 20 year period, and a 10 year period if you go into public service.

 

You're also assuming that our Universities are 1) run efficiently; and 2) not gouging the ever-living s*** out of all of us. My guess is costs could be pared down quite a bit without a big effect on salaries.

[mr_genius]

That's not what Obama is suggesting.

He's saying loan payments should be limited to 10% of wages over a 20 year period, and a 10 year period if you go into public service.

 

I was responding to the website posted. It talks about 'forgiving student loans'. I take that as meaning the debt is removed. I don't know anything about the Obama proposal.

 

You're also assuming that our Universities are 1) run efficiently; and 2) not gouging the ever-living s*** out of all of us.

 

haha, trust me, I don't assume that.

Edited February 3, 2010 by mr_genius

[Cknolls]

Let's get some more funding for global warming studies.

 

 

Where do I send my check?

 

 

Got a paypal acct.. Wouldn't want to send it through the mail and use fossil fuels.

[Jenksismyhero]

You are going to the absolute extreme other end of the argument.

I'm not trying to argue that education should be free, neither am I trying to argue that the taxpayers should bear the brunt of yours and my law degrees. I am saying the system has failed. It cannot possibly cost Depaul university $18k a year to educate a student in the part time legal program. It just cannot possibly cost that much. Probably more like $5k a year.

 

You are taking a free market capitalist approach to education, and I simply think the risks are too great for it to be that way.

 

Now let's get this straight. I went to SIU and pounded out 61 credit hours in a year and a half so I could do it as inexpensively as possible (I had gone to a private school previously, wherein my tuition was free because my father had taught there. I absolutely hated it, and the education sucked. And a clergyman tried to molest me on top of it all).

 

Next, I went to Depaul. And I worked full-time for the last 3 years of the 4 years I was there. I busted my ass, working 8-5 every day then going to class from 5:50 - 8:30 four nights a week. I didn't take private loans so I could sit on my ass and do nothing all day or live in some high rise apartment down in the City. I busted my freaking ass.

 

Now I don't have an issue with paying off my loans, but it's getting to the point where it is simply ridiculous. Your student loan payment should not rival your mortgage payment in size, just because you wanted an advanced degree. I just cannot accept that. Especially since the workplace we busted our ass to step into has completely collapsed.

 

If you think the system is still fair and efficient, than so be it. But I cannot believe a system wherein I am trying to be a productive member by educating myself actually comes back to harm me more than had I never chose to educate myself at all is one that is working.

 

 

Dude, I did the same thing. What year did you graduate? Dec 2007 here.

 

I'm not for totally forgiving student loans, but I've said repeatedly before one of the better ways to stimulate the economy is to put all student loans into deferment for a certain amount of time. My fiance (masters) and I (juris doctor) pay over 1200 a month on loans. We'd gladly spend that on a house/things to put in the house/other services/goods.

[kapkomet]

Where do I send my check?

 

 

Got a paypal acct.. Wouldn't want to send it through the mail and use fossil fuels.

 

 

Trust me, you already are paying for it.

[Balta1701]

Yea, but we need more money spent to figure it all out and what and how we're going to fix it.

Again, that's your side. Ours says the answers are already out there, and working in other countries.

[bigruss]

You don't need to go to a school that costs 30K per year. I went to a state school, paid under 1000 a semester (now prices have been raised and it is now about 2000 a semester), but that is a far cry from 30K a year and it is an affordable amount. Even if you go to a University, you wouldn't be more than 15K a year in tuition I'd imagine.

 

Now there are living costs, but that is an entirely separate issue.

With room and board the total cost per year for me at U of I UC in the business school is about $25,000, tuition itself is about $13,000 a year and the business school charges an extra $4000 a year just to be in it.

 

You can go to the non flagship state school, but you are still looking at $8000-10000 a year in tuition plus living expenses.

[kapkomet]

Again, that's your side. Ours says the answers are already out there, and working in other countries.

 

 

 

Again, everywhere else is so much better then the US. Go live there.

[Balta1701]

 

Again, everywhere else is so much better then the US. Go live there.

Thankfully, doing so will protect me from changes to the atmosphere...

[iamshack]

Dude, I did the same thing. What year did you graduate? Dec 2007 here.

 

I'm not for totally forgiving student loans, but I've said repeatedly before one of the better ways to stimulate the economy is to put all student loans into deferment for a certain amount of time. My fiance (masters) and I (juris doctor) pay over 1200 a month on loans. We'd gladly spend that on a house/things to put in the house/other services/goods.

I graduated in May of 07'. Hard to believe it's been that long actually.

[kapkomet]

Thankfully, doing so will protect me from changes to the atmosphere...

 

 

Everywhere has so much better stuff - so much of what you want... you should go. At least you can have peace of mind knowing that the country you live in isn't killing the rest of the world by its pollution. And messed up health care system. And lack of redistribution of wealth. And education standards. My, this country sucks. We suck! SUCK!

[Balta1701]

Everywhere has so much better stuff - so much of what you want... you should go. At least you can have peace of mind knowing that the country you live in isn't killing the rest of the world by its pollution. And messed up health care system. And lack of redistribution of wealth. And education standards. My, this country sucks. We suck! SUCK!

However, a lot of them use nuclear power.

[nitetrain8601]

I agree that not all of it should be forgiven, but at the same time, for a couple that has decided to educate themselves is pumping $1200 bucks of their hard earned dough to just pay back what was supposed to help them get ahead. That doesn't seem right to me. As someone said before, schools are charging for you just to be in the program. Not for what it would actually cost to ensure you get the proper education with the proper utensils, but they are charging you just based on them making a super duper large profit.

 

Seriously, $4,000 for just being in the business program? That's a joke. What seems better to you, especially in this economy.

 

High School Graduate, goes and works at a bank, works his way up from teller, to personal banker, to finance advisor, bookkeeper, to branch manager to regional manager(in the span of 6 years is norm where I am) to VP of banking relations while spending money only on food and travel while living in mom's basement until 25 where he actually becomes a finance advisor and can make some decent money.

 

or

 

High School Graduate goes to State College, racks up about $100,000.00 in college loans, but gets business degree, starts right away working as an intern under the bookkeeping department, then gets a full-time job as a bookkeeper. Then after 2 or 3 years working as a bookkeeper tries to get on in a different department(takes him this long because his degree is accounting and they think he should specialize and become head of bookkeeping since he doesn't have experience on how the other components of the bank works.) and eventually is put in the field as a branch manager for a year than a regional manager after that to VP of banking relations.

 

Now it may have taken the graduate a year shorter or sometimes 2 years shorter or sometimes the same time. But the thing is, the other guy who may have started at a lower position making peanuts busting his butt off did not rack up that student loan debt. He may even make a lower average salary(probable) than the graduate in the same position. The difference is, he has nowhere near the debt the college student who took the shortcut, the good route has. So in all, during the course of their lives, the high school graduate probably will be able to spend more on a monthly basis than the guy who racked up crazy debt.

 

Now of course, if you went to school for engineering or actuary sciences, then the story is different. I'm just going for the average college student. College does open opportunities for more fields such as teaching, etc. But it will cost you a ton in the long run to do something that makes you truly happy.

 

All in all, from my experience, I would say go to college if you have to pay no more than what high school tuition was. If it's more, you better be getting grants and scholarships because then it won't be worth it financially.

[mr_genius]

A lot of people who graduated during this recession are definitely in rough shape. I would support some type of additional grace period for paying back student loans.

Edited February 3, 2010 by mr_genius

[Texsox]

These universities should not be entitled to build up annuities in the hundreds of millions or even billions while charging students outrageous tuitions to try and contribute to the economy and have a successful career.

 

Actually much of that comes from donations. By spending the interest and not the principle, the university is helping to assure their future. It really is better than having them spend the principle.

[Texsox]

I am certain everyone here with degrees will encourage all of you to drop out of college. That way, years from now, we'll hear you b**** that you were denied a promotion because a college degree was required, or they won't even interview you. Meanwhile, those with degrees will be promoted and interviewed. The choice is yours.

 

And college is not just a path for your career. Some people actually value education for education's sake.

 

I could write a scenario where the kid that dropped out of high school winds up managing the college grad, but that isn't reality and hasn't been for a long time. Check the want ads, without a degree of any kind, you will not be considered for positions. Why start a job search by eliminating possibilities?

 

And at least in my corner of Texas, you will not be a bank manager without a degree. That's a minimum.

[G&T]

I think that we are now going to the days where you can't just go into anything that you want, or what you like. You may have to go into an area that you are not crazy about to land a good job. That seems to be what my grandparents grew up with. They didn't pick and choose where they went for a job, they were happy to have a job that paid the bills.

 

This is absolutely true. I majored in history. Completely useless, but I couldn't do the math to get through chemistry in college (and that math isn't very hard). I knew I wanted to go to law school, so it wasn't a problem.

 

But the comparison to our grandparents isn't quite right. We still take jobs we don't want in order to pay the bills. The difference is that our grandparents didn't pay over $100k to get a job they didn't want. If they did pay, then they got whatever job they wanted. Generally, they went to trade school and got into union work that not only paid the bills, but also paid incredible pensions.

[G&T]

Seriously, $4,000 for just being in the business program? That's a joke. What seems better to you, especially in this economy.

 

High School Graduate, goes and works at a bank, works his way up from teller, to personal banker, to finance advisor, bookkeeper, to branch manager to regional manager(in the span of 6 years is norm where I am) to VP of banking relations while spending money only on food and travel while living in mom's basement until 25 where he actually becomes a finance advisor and can make some decent money.

 

or

 

High School Graduate goes to State College, racks up about $100,000.00 in college loans, but gets business degree, starts right away working as an intern under the bookkeeping department, then gets a full-time job as a bookkeeper. Then after 2 or 3 years working as a bookkeeper tries to get on in a different department(takes him this long because his degree is accounting and they think he should specialize and become head of bookkeeping since he doesn't have experience on how the other components of the bank works.) and eventually is put in the field as a branch manager for a year than a regional manager after that to VP of banking relations.

 

Now it may have taken the graduate a year shorter or sometimes 2 years shorter or sometimes the same time. But the thing is, the other guy who may have started at a lower position making peanuts busting his butt off did not rack up that student loan debt. He may even make a lower average salary(probable) than the graduate in the same position. The difference is, he has nowhere near the debt the college student who took the shortcut, the good route has. So in all, during the course of their lives, the high school graduate probably will be able to spend more on a monthly basis than the guy who racked up crazy debt.

 

Except the comparison appears to be flawed, although I don't know much about the business. The college grad can leave that bank and get a higher paying job elsewhere because he has bargaining power. The high school can't necessarily leave, and without that power, he never be paid what the grad will. Despite the experience he has, he will be up against college graduates who have similar experience if he tries to leave.

[iamshack]

I am certain everyone here with degrees will encourage all of you to drop out of college. That way, years from now, we'll hear you b**** that you were denied a promotion because a college degree was required, or they won't even interview you. Meanwhile, those with degrees will be promoted and interviewed. The choice is yours.

 

And college is not just a path for your career. Some people actually value education for education's sake.

 

I could write a scenario where the kid that dropped out of high school winds up managing the college grad, but that isn't reality and hasn't been for a long time. Check the want ads, without a degree of any kind, you will not be considered for positions. Why start a job search by eliminating possibilities?

 

And at least in my corner of Texas, you will not be a bank manager without a degree. That's a minimum.

Tex,

How much did your tuition cost when you were in college?

[southsider2k5]

Tex,

How much did your tuition cost when you were in college?

 

Plato taught him for a couple of drachmas.

[bmags]

The fact that the not going to college v. going to college is even being considered lets you know how much the system is broken. I say this b/c while college degrees earn more, that is becoming increasingly bogged down and unclear. The bachelors degree system is probably not the most efficient system, certainly not the best use of most's money, and incompatible with a large number who go there. Which makes it more insane that those with the language and math skills to get through to a for year, to reach their full potential, are asked to go into mountains of debt in order to get into a good program It's insane.

 

And it's funny how moral this argument is. The idea comes from the facts that we had to bail the banks out because then lending would freeze, the economy would come to a standstill, crippling depression. YOu can see where you benefit. For this, relieving thousands of the nations best educated from debt of a broken system, gets met as if they are dead beats and why should they get free. If these people were relieved of this student loan debt, these are the ones who could best use that money on capital for a small business, or let alone the fact that these are a whole bunch of single/18-34's who like to spend. But when this is suggested, everyone becomes defensive.

[nitetrain8601]

Except the comparison appears to be flawed, although I don't know much about the business. The college grad can leave that bank and get a higher paying job elsewhere because he has bargaining power. The high school can't necessarily leave, and without that power, he never be paid what the grad will. Despite the experience he has, he will be up against college graduates who have similar experience if he tries to leave.

 

He would be able to leave, but his bargaining power would be less. Also the college grad would probably have an easier time leaving. The high school grad also wouldn't have that college loan debt which is huge. Therefore he has as good if not better spending power than the college grad which is the main point. Now as I stated before, engineers and actuaries are different.

[nitetrain8601]

The fact that the not going to college v. going to college is even being considered lets you know how much the system is broken. I say this b/c while college degrees earn more, that is becoming increasingly bogged down and unclear. The bachelors degree system is probably not the most efficient system, certainly not the best use of most's money, and incompatible with a large number who go there. Which makes it more insane that those with the language and math skills to get through to a for year, to reach their full potential, are asked to go into mountains of debt in order to get into a good program It's insane.

 

And it's funny how moral this argument is. The idea comes from the facts that we had to bail the banks out because then lending would freeze, the economy would come to a standstill, crippling depression. YOu can see where you benefit. For this, relieving thousands of the nations best educated from debt of a broken system, gets met as if they are dead beats and why should they get free. If these people were relieved of this student loan debt, these are the ones who could best use that money on capital for a small business, or let alone the fact that these are a whole bunch of single/18-34's who like to spend. But when this is suggested, everyone becomes defensive.

 

100% accurate in my opinion.