Student Loan Payment Pause Extension

[CoffeeIsForClosers]

This is some of the most ridiculous use of resources. There is zero reason a college educated person could not find a good paying job in this economy. Hell 1 in 7 can work from home now. Help those who can't help themselves....absolutely. But these folks are in an unbelievable job market.

And then we are still talking about loan forgiveness? This is the most anti-socialist socialist idea I've ever heard of. Who does loan forgiveness help? the top 1/3 of people in this country who are able/capable of going to college? And lets not even get started how this doesn't even address the issue that has caused student loan debt to run "out of control" to begin with. If nothing else it only perpetuates it. Cap the amount you loan people. Make each loan go through underwriting. Then maybe schools will start charging what a degree is worth. This is just putting a band-aid on a severed arm.

This is where the left loses me. Look at the economy. The pandemic is 99% over. Time for those who can to start paying their debts.

Biden administration expected to extend payment pause for student loan borrowers through August

Federal student loan borrowers could get more time before they have to resume payments again.

www.cnbc.com

 

[PawsFan_]

This is some of the most ridiculous use of resources. There is zero reason a college educated person could not find a good paying job in this economy. Hell 1 in 7 can work from home now. Help those who can't help themselves....absolutely. But these folks are in an unbelievable job market.

And then we are still talking about loan forgiveness? This is the most anti-socialist socialist idea I've ever heard of. Who does loan forgiveness help? the top 1/3 of people in this country who are able/capable of going to college? And lets not even get started how this doesn't even address the issue that has caused student loan debt to run "out of control" to begin with. If nothing else it only perpetuates it. Cap the amount you loan people. Make each loan go through underwriting. Then maybe schools will start charging what a degree is worth. This is just putting a band-aid on a severed arm.

This is where the left loses me. Look at the economy. The pandemic is 99% over. Time for those who can to start paying their debts.

Biden administration expected to extend payment pause for student loan borrowers through August

Federal student loan borrowers could get more time before they have to resume payments again.

www.cnbc.com

Helps the Art History undergrad to get their Masters in Medieval Culture so they can go from making $21K at year to $24k a year after incurring another $30k in debt.

 

[firegiver]

My wife pay 1k a month in student loans for a master degree in social work. She still owes about 40k. She made 40k a year until recently being promoted to a manager level now making 57k a year.

She was promised loan forgiveness by the federal government when she signed up for the loan if she completed 10 years worh of service in the public sector. Guess what we found out afterwards thar they never actually approve any forgiveness . They will bury you in bs and fail you on any technicalities. So we just pay it. It's a large amount of money. Couple that with 3 kids in daycare and you understand we pay a fortune just for the right to go to work.

College education is too expensive.
It's pretty ignorant not to understand this.

 

[scotchtiger]

College education is too expensive.
It's pretty ignorant not to understand this.

The easy access to capital/loans is exactly why college is so expensive though. Pretty much anyone can go get a loan regardless of repayment capability, whether that be credit worthiness or the income potential from the degree for which the loan will be used.

That’s a pretty basic element of the equation. Do you agree?

The example you give is unfortunate. Yet another reason I have zero faith in our government. Baffles me that there are people who want to turn over more responsibility to those bozos.

 

[FranktheDank]

If they’re going to keep delaying at least just own it. Don’t continue to do it under the guise of the pandemic that’s been over for the better part of a year

 

[WapPride]

Idk the answer, but I don’t hate the idea of having all loans go through a government body with a capped interest rate, or a zero interest rate for loanees. We should be encouraging a smarter and more educated populace, but not at the price gouging student loan rates people have been dealing with the last 20+ years.

 

[moradatiger70]

Thankfully I took advantage of the 529, but I agree with almost all sentiments in this
thread.

 

[firegiver]

The easy access to capital/loans is exactly why college is so expensive though. Pretty much anyone can go get a loan regardless of repayment capability, whether that be credit worthiness or the income potential from the degree for which the loan will be used.

That’s a pretty basic element of the equation. Do you agree?

The example you give is unfortunate. Yet another reason I have zero faith in our government. Baffles me that there are people who want to turn over more responsibility to those bozos.

Yes i do agree. But do you not agree that society as a whole is going to degrade the more you put teachers and social workers in an inescapable debt prison? Something has to be done IMO, you can't just say "make better individual choices". We are talking about the failure of our society here. No nursing graduates, no teachers no nothing. Good luck your on your own.

I'd also state its for profit loans that did this and colleges did this and of course easy access to debt did this. If the government funded college level education none of this would matter.
How do we reduce the cost of college education? During this time, the concentration of wealth is leaving the middle class and going to the rich. Those that create mutual funds on the backs of these loans. So of course society is gamed to make college expensive.

 

[moradatiger70]

Just my $0.02 the government should NOT totally FUND a college education, but as @WapPride stated a rate that adheres to fair interest, IF ANY, would be something that should be looked at.

 

[firegiver]

Just my $0.02 the government should NOT totally FUND a college education, but as @WapPride stated a rate that adheres to fair interest, IF ANY, would be something that should be looked at.

I mean its not a bad start but I'd counter that we are dealing with an extraordinary problem. You don't go from working a part time summer job to pay for college and room and board just 40 years ago, to going into crippling debt for 15 years to do the same now... and talk about just interest rates. Things have gotten completely out of whack and something major needs to be done.

 

[CoffeeIsForClosers]

My wife pay 1k a month in student loans for a master degree in social work. She still owes about 40k. She made 40k a year until recently being promoted to a manager level now making 57k a year.

She was promised loan forgiveness by the federal government when she signed up for the loan if she completed 10 years worh of service in the public sector. Guess what we found out afterwards thar they never actually approve any forgiveness . They will bury you in bs and fail you on any technicalities. So we just pay it. It's a large amount of money. Couple that with 3 kids in daycare and you understand we pay a fortune just for the right to go to work.

College education is too expensive.
It's pretty ignorant not to understand this.

Agree completely that it is too expensive in many cases and empathize with your situation. My opinion is college is too expensive because people will pay it and if their parents can’t afford it they will borrow as much money as they need to do so without any thought to the consequences. That’s what we’ve all been told you have to do. Get a 4 year degree or struggle to support your family.

Put a cap on loans and watch how quickly college costs fall in line.

The most glaring problem in my eyes….Why can a pre-law student borrow as much as an elementary education major when the average salary is about 6 figures apart? We have a crisis here with little difference to the housing crisis in 08. We are giving loans to people who won’t be able to pay them and the value of the asset they obtain will have them “under water“ as soon as they graduate. It’s foolish really.

 

[firegiver]

Agree completely that it is too expensive in many cases and empathize with your situation. My opinion is college is too expensive because people will pay it and if their parents can’t afford it they will borrow as much money as they need to do so without any thought to the consequences. That’s what we’ve all been told you have to do. Get a 4 year degree or struggle to support your family.

Put a cap on loans and watch how quickly college costs fall in line.

The most glaring problem in my eyes….Why can a pre-law student borrow as much as an elementary education major when the average salary is about 6 figures apart? We have a crisis here with little difference to the housing crisis in 08. We are giving loans to people who won’t be able to pay them and the value of the asset they obtain will have them “under water“ as soon as they graduate. It’s foolish really.

so... what is the solution? Less educated % of people? Can't afford college don't go? That has huge consequences to society as well.

 

[CoffeeIsForClosers]

so... what is the solution? Less educated % of people? Can't afford college don't go? That has huge consequences to society as well.

The solution? Quit pumping money into the problem. Colleges need customers. Costs on college campus are out of control. Only way to get them to pull back is to cut their budgets….decrease the amount of money available to their customers.

But while we are at at….I do think we should be putting more of an effort towards pushing more students towards affordable quality education from technical schools. Why not start with an associates from a community college before transferring to get your Bachelors? And for those who choose not to move on they’d at least have a degree and a skill to go to work with. Plumbers, welders, carpenters, cyber security….those are the degrees with best ROI out there right now.

 

[firegiver]

The solution? Quit pumping money into the problem. Colleges need customers. Costs on college campus are out of control. Only way to get them to pull back is to cut their budgets….decrease the amount of money available to their customers.

But while we are at at….I do think we should be putting more of an effort towards pushing more students towards affordable quality education from technical schools. Why not start with an associates from a community college before transferring to get your Bachelors? And for those who choose not to move on they’d at least have a degree and a skill to go to work with. Plumbers, welders, carpenters, cyber security….those are the degrees with best ROI out there right now.

I don't know the numbers but I'm going to infer you mean to decrease the number of college graduates in America. You think thats really the route we need to go? I understand the financials you are citing but, have you considered what less college grads does to us, as a whole?

also: LOL at cyber securit being non bachleors... cmon man.

 

[Cocks are Number 1]

My wife pay 1k a month in student loans for a master degree in social work. She still owes about 40k. She made 40k a year until recently being promoted to a manager level now making 57k a year.

She was promised loan forgiveness by the federal government when she signed up for the loan if she completed 10 years worh of service in the public sector. Guess what we found out afterwards thar they never actually approve any forgiveness . They will bury you in bs and fail you on any technicalities. So we just pay it. It's a large amount of money. Couple that with 3 kids in daycare and you understand we pay a fortune just for the right to go to work.

College education is too expensive.
It's pretty ignorant not to understand this.

Assuming what you’ve said is fact… I can understand your frustration. Also.. yes, college is too expensive.

 

[Cocks are Number 1]

The solution? Quit pumping money into the problem. Colleges need customers. Costs on college campus are out of control. Only way to get them to pull back is to cut their budgets….decrease the amount of money available to their customers.

But while we are at at….I do think we should be putting more of an effort towards pushing more students towards affordable quality education from technical schools. Why not start with an associates from a community college before transferring to get your Bachelors? And for those who choose not to move on they’d at least have a degree and a skill to go to work with. Plumbers, welders, carpenters, cyber security….those are the degrees with best ROI out there right now.

Great post.

 

[firegiver]

Assuming what you’ve said is fact… I can understand your frustration. Also.. yes, college is too expensive.

i have no reason to lie. do you think that the social workers and teachers in your community haven't faced the exact same predicament? Because they do.
I mean it requires a degree in large parts to do these jobs and they are killing the pipeline.

 

[firegiver]

Great post.

ehhhh in some ways, but you super capitalist forget you even arrived here today on the fortunes and successes of a government that you seem to hate. The elevator wasnt' sent back down, the well was poisoned and none of you seem to have much in the way of solutions going forward. Just hey government bad, don't trust em, its true stuff costs a lot.
Great job on the analysis but lets do something. Thats kinda why people choose the dem party over the pubs by the way, the pubs tend to do absolutely nothing.
Not that the dems do anything but atleast Bernie actually talked about doing something.

 

[CUT93]

I don't know the numbers but I'm going to infer you mean to decrease the number of college graduates in America. You think thats really the route we need to go? I understand the financials you are citing but, have you considered what less college grads does to us, as a whole?

also: LOL at cyber securit being non bachleors... cmon man.

He is not advocating for fewer college grads. If that happens, it will be a temporary thing. If enrollments drop due to the cost of enrollment, colleges will cut their budgets and reduce enrollment costs to keep their customers.
If they are smart, they will have scaled tuition based on your expected income from your major, to go along with scaled loans and reduced overall tuition.

There is no easy solution at this point. Like most disasters the govt creates it takes time before it becomes an obvious problem to most people. They are just like a drug dealer. They start off slow and increase the addiction over time. That is exactly how this happened. It is exactly how social security got to be what it is now. Even FDR said SS was meant to be a temporary crutch due to the great depression. It was not meant to be a retirement fund in perpetuity. Almost every govt assistance program we have has morphed into something it was not designed to be. Qualifying requirements and restrictions get cut over time, benefits get increased, and viola! you have a whole country of addicts with no way will to kick the habit. And just like kids who grow up with addicts, many follow the path they see growing up. The worst part is that we have taken away the self worth and desire to provide for of millions of people in the process.
There is a reason many people are ashamed/embarrassed when they first apply for govt assistance. Generally, people like to feel the pride of providing for them selves. When govt programs were more limited in time and scope this desire to provide remained and the incentive of knowing you had to change your circumstances- whether that be adjusting your lifestyle to meet you means or increasing your means support your lifestyle. But just like a bad haircut, govt assistance begins to carry less and less shame/embarrassment over time and slowly erodes self worth to the point it just goes away.
If you don't think long time politicians know this and use it against the citizenry, you are fooling yourself. They know once they get you hooked, you have no choice but to vote for more of the same- and they can do it all under the guise of compassion.

 

[TigerGrowls]

The obvious answer to me is the federal government should not be involved in the college funding process at all. Let the colleges take on the control and liability to whom they loan money to. Colleges get paid now no matter what and that is helping create this current state of affairs. When colleges have to vet students properly, the admissions process will change for the better and then maybe some of these obscure majors will disappear. Maybe technical and trade schools will flourish also.

 

[CUT93]

ehhhh in some ways, but you super capitalist forget you even arrived here today on the fortunes and successes of a government that you seem to hate. The elevator wasnt' sent back down, the well was poisoned and none of you seem to have much in the way of solutions going forward. Just hey government bad, don't trust em, its true stuff costs a lot.
Great job on the analysis but lets do something. Thats kinda why people choose the dem party over the pubs by the way, the pubs tend to do absolutely nothing.
Not that the dems do anything but atleast Bernie actually talked about doing something.

You are smarter than this. Bernie's wet dream was the old USSR, and he has so much as said so. The only way the govt can afford to do all the things he wanted is to basically cap income at a certain level and give the rest to the govt. In that scenario you will not end up increasing the standard of living for the poor, you will just bring everyone else closer to poor. One of the problems we have in this country is that some seem to think everyone deserves to have most of what they want rather than what they need. The "poor" in this country are probably in the top 10% of the world population. Why do you think our borders are being overrun? There is always going to be a class of poor people, there simply is no way to change that. the difference in a capitalists' society is that the upper end is much higher which results in the lower end being higher as well - rather than everyone being lower, but closer together. Don't take this to mean I don't think we should help people who can not help them selves. However, if you want me to pay for your home, food, clothes, etc., you need to be wearing clothes from walmart, eating cheap home cooked meals, and driving a 20 yr old honda civic and not eating out at restaurants, wearing name brand clothes, living in brand new apartments with granite countertops and 60" Tv's, talking on your iphone, and driving a new car.
Since we are talking about student loans, I'll apply the same. If you want other people to pay for your loans, you dang well better being living the same way.

 

[tigerworx]

In these times, College is often not the right answer.

Just the one people assume.
Colleges and Professors with nowhere else to turn, push it hard.

Pretty dumb of me to say "Wake up America" .........when we're already pretty much 'woke'.

 

[CoffeeIsForClosers]

I don't know the numbers but I'm going to infer you mean to decrease the number of college graduates in America. You think thats really the route we need to go? I understand the financials you are citing but, have you considered what less college grads does to us, as a whole?

also: LOL at cyber securit being non bachleors... cmon man.

I didn't say anything about decreasing the number of college graduates. All I said was put a cap on how much people could borrow. Colleges won't decrease enrollment. They will realign their costs with what their customers have available to spend. I also said we should put a greater emphasis on technical colleges...which should actually increase the number of people with degrees.

These universities are state entities and run that way....you give them a budget and that's what they will work with. Give them more money and they will spend it. Give them less and they will spend it. This is why cost of going to college increases at such a high rate....because it can.

Do me a favor. Just google 'associates in cyber security.' It's actually very popular

 

[Cocks are Number 1]

ehhhh in some ways, but you super capitalist forget you even arrived here today on the fortunes and successes of a government that you seem to hate. The elevator wasnt' sent back down, the well was poisoned and none of you seem to have much in the way of solutions going forward. Just hey government bad, don't trust em, its true stuff costs a lot.
Great job on the analysis but lets do something. Thats kinda why people choose the dem party over the pubs by the way, the pubs tend to do absolutely nothing.
Not that the dems do anything but atleast Bernie actually talked about doing something.

You lost me @ Bernie.

 

[Cocks are Number 1]

ehhhh in some ways, but you super capitalist forget you even arrived here today on the fortunes and successes of a government that you seem to hate. The elevator wasnt' sent back down, the well was poisoned and none of you seem to have much in the way of solutions going forward. Just hey government bad, don't trust em, its true stuff costs a lot.
Great job on the analysis but lets do something. Thats kinda why people choose the dem party over the pubs by the way, the pubs tend to do absolutely nothing.
Not that the dems do anything but atleast Bernie actually talked about doing something.

No personal offense, but you come across as bitter & angry. We all make our own choices during our own paths. I hope yours path creates Happyness moving forward.

 

[CoffeeIsForClosers]

Just thought this would be an interesting addition to the discussion. Look at current salaries of CU Faculty.

Here are a few off the leadership team (many of these positions didn't exist 10 years ago)

Robert Jones - Provost & VP of Acad Affairs - $410,000

Max Allen - VP & Chief of Staff -$285,000

Tracy Arwood - Chief Ethics & Compliance Officer - $192,500

George Askew - VP for Public Service - $295,409

Lee Gill - Chief Diversity Officer - $185,850

Chip Hood - Advisor to BOT - $315,000

Tanju Karanfil - VP for Research - $320,000

Lisa Knox - VP Finance and Operations - $105,315

Angela Leidinger - VP Government Affairs - $285,221

Brian O'Rourke - VP Devel and Alumni Relations - $305,000

https://www.clemson.edu/institutional-effectiveness/documents/oir/salaries/SalariesOver50K_18-19.pdf

 

[WapPride]

cost of tuition increasing 8fold since 1986, and the median starting salary out of college increasing by $4k total from 1986 to 2022 is a travesty.

 

[PawsFan_]

Just thought this would be an interesting addition to the discussion. Look at current salaries of CU Faculty.

Here are a few off the leadership team (many of these positions didn't exist 10 years ago)

Robert Jones - Provost & VP of Acad Affairs - $410,000

Max Allen - VP & Chief of Staff -$285,000

Tracy Arwood - Chief Ethics & Compliance Officer - $192,500

George Askew - VP for Public Service - $295,409

Lee Gill - Chief Diversity Officer - $185,850

Chip Hood - Advisor to BOT - $315,000

Tanju Karanfil - VP for Research - $320,000

Lisa Knox - VP Finance and Operations - $105,315

Angela Leidinger - VP Government Affairs - $285,221

Brian O'Rourke - VP Devel and Alumni Relations - $305,000

https://www.clemson.edu/institutional-effectiveness/documents/oir/salaries/SalariesOver50K_18-19.pdf

This^^^^^^

Not a single professor at a college should be making more than $100k. Being a professor is a glorified part time job.

 

[PawsFan_]

Some folks don't know how to take student loans. They take'm to not only pay for tuition but for books, food and life.

That's foolish. I was full time in graduate school. Still had a part time job. 60+ hours to graduate so two full years. I had loans for all my tuition. Paid my loans off within 3 years of graduating.

 

[CoffeeIsForClosers]

Some folks don't know how to take student loans. They take'm to not only pay for tuition but for books, food and life.

That's foolish. I was full time in graduate school. Still had a part time job. 60+ hours to graduate so two full years. I had loans for all my tuition. Paid my loans off within 3 years of graduating.

Part of the problem is most people borrow whatever they qualify for. What they don't spend on tuition/room/board becomes discretionary.

What would you have done at 18-22 years old with an extra $1k in your pocket? I bought an ipod, grabbed a pizza, and went downtown.

 

[PawsFan_]

Part of the problem is most people borrow whatever they qualify for. What they don't spend on tuition/room/board becomes discretionary.

What would you have done at 18-22 years old with an extra $1k in your pocket? I bought an ipod, grabbed a pizza, and went downtown.

Agree. We had to borrow for my wife's masters and she did the same thing. I saw the check and said "whoooooa nelly! Send it back. We only want tuition."

 

[firegiver]

No personal offense, but you come across as bitter & angry. We all make our own choices during our own paths. I hope yours path creates Happyness moving forward.

I mean that's true. I am bitter. So are those amazon workers unionizing. Times keep changing.

 

[CoffeeIsForClosers]

I mean that's true. I am bitter. So are those amazon workers unionizing. Times keep changing.

So I've always thought that the interest rates charged on student loans to be a little high making it hard for folks to pay down their debts. How much would it help if they reflected CPI (typically 2 to 3%) instead of the bank loan yield?

I know mine were always 6 to 8%, but interest rates were a lot higher back then. If I was only able to pay the minimum I'd still be paying on them. Maybe that's the happy middle ground on loan forgiveness. Let's forgive or at the very least put a cap on the interest?

 

[clemben]

The easy access to capital/loans is exactly why college is so expensive though. Pretty much anyone can go get a loan regardless of repayment capability, whether that be credit worthiness or the income potential from the degree for which the loan will be used.

That’s a pretty basic element of the equation. Do you agree?

The example you give is unfortunate. Yet another reason I have zero faith in our government. Baffles me that there are people who want to turn over more responsibility to those bozos.

Another big part of the equation is that state governments decided to not invest in state schools and education which caused schools to jack up tuition to counteract this.

The other thing is the bloating of admin salaries and dealing with expensive boomer salaries.

Couple this with a cottage industry of student loans who lobbied to have more privatization and learned how to jack up interest rates to as high as 6.8% for no reason other than making money off of borrowers when for decades before loans sat at around 1-2% (which is basically par with inflation and not a huge burden). But those companies will cry till they are blue in the face that they make no money and admin overhead (ie money for board bonuses) means they need high interest rates. And to be clear this is unfettered corporate mingling with govt that screws up govt functioning. This is why privatization done wrong can be the WORST thing for regular people.

So it isn't so simple...

 

[clemben]

So I've always thought that the interest rates charged on student loans to be a little high making it hard for folks to pay down their debts. How much would it help if they reflected CPI (typically 2 to 3%) instead of the bank loan yield?

I know mine were always 6 to 8%, but interest rates were a lot higher back then. If I was only able to pay the minimum I'd still be paying on them. Maybe that's the happy middle ground on loan forgiveness. Let's forgive or at the very least put a cap on the interest?

So interest rates only went down when Liz Warren called them out and got them to curb the insanity. For decades interest rates on loans were only 1-2%. They had no business charging 6-8% other than making money off of people--lots of money. The power of the lobby in the pockets of dems and repubs is what made this a problem no one would deal with.

Here is the compromise--pay your loan at existing rate for 10 years and then have them all capped at 2% after. It is amazing the ability to pay off a loan at 2-3% vs 6-8%.

I have a car loan at 2% that is almost paid off now vs student loan sitting at 5.8% that has taken forever.

 

[CoffeeIsForClosers]

So interest rates only went down when Liz Warren called them out and got them to curb the insanity. For decades interest rates on loans were only 1-2%. They had no business charging 6-8% other than making money off of people--lots of money. The power of the lobby in the pockets of dems and repubs is what made this a problem no one would deal with.

Here is the compromise--pay your loan at existing rate for 10 years and then have them all capped at 2% after. It is amazing the ability to pay off a loan at 2-3% vs 6-8%.

I have a car loan at 2% that is almost paid off now vs student loan sitting at 5.8% that has taken forever.

Absolutely - the power of compounding can work against you as much as it can work for you.

10k loan with no payments (make simple math)

10 years later
2% interest = $12,190
8% interest after = $21,590

20 years later
2% = $14,860
8% = $46,610

30 years later
2% = $18,114
8% = $100,627

Pretty easy to see how debt can snowball.

Side note - this is exactly why we should invest in the market. The younger the better

 

[Willence]

so... what is the solution? Less educated % of people? Can't afford college don't go? That has huge consequences to society as well.

Let's start by looking at the income received by college professors these days. It's gotten completely out of hand. Let's look at the race for investment to move up in the US News rankings which is led colleges to specialize in everything to improve their research rating. All the costs of this added infrastructure is being passed along to the students. The job of a school like Clemson is to educate the youth of South Carolina and it should be very cost-effective to do so. Clemson is exorbitantly expensive. The value of a college education is far has never been more diminished.

Student loans begin accruing interest from the time that you borrow them so your loans are increasing all while you're in college. The rates are uncompetitive and is that so surprising given that there are controlled by the government at this point? Is the biggest scam going right now. Ever since it was beat into people's heads that everyone needs to go to college to grow and learn the cost of college has gone up 7 to 9% per year like clockwork. Notice a connection perhaps?

What we need are more trade schools and professional schools that will teach people to do a job that they are interested in. Someone who wants to go into nursing doesn't need to go to a traditional college. They would be much better served going to the nursing school that is designed to deal with the realities of that profession.

Most large companies could run schools that would provide the proper education to people who seek to go into employment in those industries. The reality is we don't need colleges on the scale that we have them now and the sooner we come to that reality the better. Especially when you consider how colleges are poisoning the minds of young people. They're a net negative in society at this point and not a net positive.

Like so many things we don't need to fix what we have now but rather go back to the drawing board and invent a better way of doing things. That is far simpler. The same should be done with public education. It should be completely deconstructed and rebuilt on the basis of a model that will be successful.

 

[CoffeeIsForClosers]

Let's start by looking at the income received by college professors these days. It's gotten completely out of hand. Let's look at the race for investment to move up in the US News rankings which is led colleges to specialize in everything to improve their research rating. All the costs of this added infrastructure is being passed along to the students. The job of a school like Clemson is to educate the youth of South Carolina and it should be very cost-effective to do so. Clemson is exorbitantly expensive. The value of a college education is far has never been more diminished.

Student loans begin accruing interest from the time that you borrow them so your loans are increasing all while you're in college. The rates are uncompetitive and is that so surprising given that there are controlled by the government at this point? Is the biggest scam going right now. Ever since it was beat into people's heads that everyone needs to go to college to grow and learn the cost of college has gone up 7 to 9% per year like clockwork. Notice a connection perhaps?

What we need are more trade schools and professional schools that will teach people to do a job that they are interested in. Someone who wants to go into nursing doesn't need to go to a traditional college. They would be much better served going to the nursing school that is designed to deal with the realities of that profession.

Most large companies could run schools that would provide the proper education to people who seek to go into employment in those industries. The reality is we don't need colleges on the scale that we have them now and the sooner we come to that reality the better. Especially when you consider how colleges are poisoning the minds of young people. They're a net negative in society at this point and not a net positive.

Like so many things we don't need to fix what we have now but rather go back to the drawing board and invent a better way of doing things. That is far simpler. The same should be done with public education. It should be completely deconstructed and rebuilt on the basis of a model that will be successful.

What? You don’t think a department chair at a state university should make $240k a year? I mean he has student loans to pay too lol

 

[clemben]

Absolutely - the power of compounding can work against you as much as it can work for you.

10k loan with no payments (make simple math)

10 years later
2% interest = $12,190
8% interest after = $21,590

20 years later
2% = $14,860
8% = $46,610

30 years later
2% = $18,114
8% = $100,627

Pretty easy to see how debt can snowball.

Side note - this is exactly why we should invest in the market. The younger the better

Agreed. And I think you free up a lot of money for investing and injecting back into the economy if you set more reasonable interest rates for student loans, which really just goes to line the pockets of the boards of these cottage student loan industries when they make so much profit.

 

[anon_5e8aassgcbjz1]

The obvious answer to me is the federal government should not be involved in the college funding process at all. Let the colleges take on the control and liability to whom they loan money to. Colleges get paid now no matter what and that is helping create this current state of affairs. When colleges have to vet students properly, the admissions process will change for the better and then maybe some of these obscure majors will disappear. Maybe technical and trade schools will flourish also.

Very interesting idea