Grandma's New Financial Problem: College Debt - Yahoo! Finance

 

 

Student loans are a problem that simply are not just going to go away.

 

 

Interest rates should be no higher than 3%, EVER.

 

Should be forgiven at age 60.

 

Should be forgiven after 5 years public service.

"Forgiven" is a touchy word.

 

Give me some examples of how they might work it off through public service.

I'm paying for my kids college education, why should I pay for their kids education also? If anything let's transfer the debt in full to the kids who attended college. No cut in interest rates, no forgiveness of debt. Too much is thrown on the taxpayers when people make bad decisions.

This is such a terrible double-edged sword. Really exemplifies Livy's ancient proverb of being able to cope with neither the disease nor the cure.

 

There's a good argument to be made that a big part of what's allowed college tuition costs to far outpace inflation is the glut of free money flowing into universities through federal aid programs. The universities get it without having to worry whether it will ever be paid back. If it isn't, that's the government's problem, not the institution's. At this point, at least while the bubble's still growing, universities can take in tuition and spend and spend and spend with no immediate consequences. I know my own alma mater, the University of Dayton, is a good example of this; there has been more construction on campus in the last 10 years than in the 45 years preceding.

 

At the same time, if we cut these programs off, are we really prepared for what happens then? I think that eventually the market will sort itself out and the ridiculous nature of attending college just to attend college will be gone forever and jobs for those without college degrees will become more widely available, but the short-term consequence could be pretty nasty, with colleges finding their money drying up and a lot of people suddenly finding out that they can't afford to attend college.

The next 'bubble'.

 

There is a reason the banks dumped the student loans onto the government...there is no collateral backing them. That is one of the reasons you can erase this debt with bankruptcy.

 

Remember the old saying - "Whats the difference between true love and herpes? Herpes is forever." So are student loans - until you pay them off.

"Forgiven" is a touchy word.

 

Give me some examples of how they might work it off through public service.

 

Working all those stimulus funded infrastructure projects! :lol:

Working all those stimulus funded infrastructure projects! :lol:

 

Yes I know you're joking with the above but it sort of gets to my point.

 

Are we saying one's labor will pay off student debt? How is the guy going to eat if he's not earning wages?

Yes I know you're joking with the above but it sort of gets to my point.

 

Are we saying one's labor will pay off student debt? How is the guy going to eat if he's not earning wages?

 

When you find a significant 'infrastructure' project (stimulus funded or not) please post it. I guess the I-75/71 bridge will fall into the Ohio before they spend real money on real things.

When you find a significant 'infrastructure' project (stimulus funded or not) please post it. I guess the I-75/71 bridge will fall into the Ohio before they spend real money on real things.

 

Oh you guys can't your bridges fixed/built either? That makes me feel better about Louisville.

The next 'bubble'.

 

There is a reason the banks dumped the student loans onto the government...there is no collateral backing them. That is one of the reasons you can erase this debt with bankruptcy.

 

Remember the old saying - "Whats the difference between true love and herpes? Herpes is forever." So are student loans - until you pay them off.

 

Student loan debt cannot be erased by bankruptcy.

Student loan debt cannot be erased by bankruptcy.

 

I saw that too; taken in context that's clearly what he meant.

I'm looking at around $40,000 in student debt when I graduate this spring. Not THAT much in the grand scheme of things, but still a lot more than I'd hoped for. Hoping to pay it off within 2 years by living as cheaply as possible and putting all spare cash into it. I don't want this $40,000 I owe to turn into the $75,000 it will be if I pay on their schedule.

 

Interest rates are pretty high up there right now...

Student loan debt cannot be erased by bankruptcy.

 

Oops...let out that all import word...NOT....sorry my mistake.

Oh you guys can't your bridges fixed/built either? That makes me feel better about Louisville.

 

Hey, hey...I live in the Bluegrass area...we have solution to the issue of bridges...its called the Valley View Ferry...3 cars at a time across the Kentucky River...

I can get a better interest rate on a car that depreciates than I can on an education that everyone in school told us to get? Stupidity.

 

 

Teachers, public defenders, health care workers that work for non-profits or county/state health agencies, police, firemen, emergency responders. Middle Class jobs that benefit the people and country.

 

Work 5 years and and pay no more than 10% of your disposable income and what is left is forgiven.