Student Loan Debt?

[Jstpssng]

When student loans get "forgiven", who's NOT being paid. Someone's being shorted.

Au contrair. They will be paid with more of that "free" government money.

 

[scootr]

When student loans get "forgiven", who's NOT being paid. Someone's being shorted.

The wage earning taxpayer...same as always

 

[oldnslo]

When student loans get "forgiven", who's NOT being paid. Someone's being shorted.

Lets punish the people who pay their debts and live within their means and award the people who spend foolishly beyond their means

 

[scootr]

Lets punish the people who pay their debts and live within their means and award the people who spend foolishly beyond their means

It's not their fault. They were given participation awards without winning. Is it any surprise they want financial rewards without loan fulfilment? Maybe those who have their loans erased should have their degrees erased as well?

 

[jyoutz]

Another thread had posts about Household Debt and mentioned many college grads are starting out with significant debt due to student loans.

There are ways around besides having the means to self fund or through family.

Tried and true are scholarships for all or part of expenses… 2 of my 4 nieces are attending now with merit scholarships.

Military Service can both retire existing or pay for future education expenses… I work with RNs through military service we’re able to avoid or reduce loan debt.

Another is by agreeing to practice in underserved areas which could be anywhere under United States jurisdiction.

Another is employer sponsored… several of our RN’s were able to advance from LVN to RN through employer programs on the job.

Then there are significant sign on or retention bonuses that can be applied to reduce household debt.

Having a degree in a sought after field opens many doors.

Here is just one example:

California system gave $100,000 bonuses to nurses for retention. Did it work?

Those are great options for people in the medical field. Not so much if you are studying engineering or another science. I think back to when I was in school. Tuition was much more affordable (not just cheaper due to the value of money). There are multiple reasons why, but in the case of state universities they are funding a higher percentage of operating costs from tuition and fees today. Thinking about when I attended in Arizona during the 1980s, the state legislature covered over 30% of university operating costs. Today in that state, the state only funds about 7-9%, with tuition and fees funding a much higher percentage. I’m very happy that my sons got their undergraduate tuition paid by the state lottery scholarships, but realize this isn’t an option for most US students. One son also received additional funds through the military.

 

[CloverKnollFarms]

The amount most spend on new cars during their childs lifetime, would pay for a lot of secondary education. It's just not really a priority for most parents. New cars and vacations are though

 

[CloverKnollFarms]

I had a neighbor who drove a $50k truck, didn't need to. Was always buying crap. His three car garage was filled with things he would just buy and store. No room for his cars. Kids had to get loans... Choices.

 

[3Ts]

My kids high school held a meeting for parents about funding college via grants, loans, etc. After the presentation it was opened up for questions. One person asked: "Let me see if I have this straight. My neighbor & I make exactly the same amount. He spends his money on vacations and boats so doesn't have anything in savings and I put mine in savings and forgo the vacations and boats. He will get the grant money and I won't." The presenter said: I wouldn't put it that way, but essentially you are correct.

 

[RjCorazza]

My kids high school held a meeting for parents about funding college via grants, loans, etc. After the presentation it was opened up for questions. One person asked: "Let me see if I have this straight. My neighbor & I make exactly the same amount. He spends his money on vacations and boats so doesn't have anything in savings and I put mine in savings and forgo the vacations and boats. He will get the grant money and I won't." The presenter said: I wouldn't put it that way, but essentially you are correct.

That is unfortunately the case. We got our daughter through college without debt, but she also sought out and received a crap load of small scholarships that are available for the asking. It's a lot of leg work, but she really stepped up and got a fair portion of her various tuitions paid for.

 

[WM75Guy]

Loan forgiveness just means you don't have to pay back the federal government. For public subsidized loans the money is appropriated each year by Congress and given to the DOE to disperse. The loan is then assigned to a loan servicer to collect the payments. The money collected goes back to the federal government. So, when the DOE piggybank for loans doesn't get filled up, taxpayers will make up the difference.