College parents - would you consider taking out student loans?

[Colleen27]

The fact that people are pre-gaming this potential policy is precisely why it would be a terrible idea.

Unless there is an income threshold, which would eliminate most of that potential without throwing the baby out with the bathwater.

 

[soccerdad72]

So no, I'm not a fan of well-off people trying to game the system like this so that my very hard-earned tax dollars can pay for their perfectly well-off kids. Yuck.

If you don't think my hard-earned tax dollars wouldn't be paying for a sizable portion of this possible plan, you're sorely mistaken. Why should my tax dollars pay for something that I don't have the chance to take advantage of?

 

[Cheburashka]

If you don't think my hard-earned tax dollars wouldn't be paying for a sizable portion of this possible plan, you're sorely mistaken. Why should my tax dollars pay for something that I don't have the chance to take advantage of?

Your argument is akin to saying that because you pay taxes, the government should buy you a car. Why not, as long as you pay taxes, you ask? The answer is that you can and should buy your own car.

No one's tax dollars should have to pay for the college education of those who can afford to pay it themselves. It's politically debatable whether the government should subsidize college education of the poor: there are good arguments both ways on that one. But for those who can afford to pay their own way, it's just a colossal waste of the taxpayers' money.

 

[wvjules]

Not correct. My lender sent an email asking if I needed forbearance. My federal loans were never put into any kind of forbearance, and I just paid them off this month.

My lender said that loans were in forbearance and I needed to opt-out if I wanted to continue/resume payments. The message is still posted. Also checked out the coronavirus student aid website. It says the same.

Here’s what the coronavirus student aid website says.
https://studentaid.gov/announcements-events/coronavirus
are your loans private?

 

[soccerdad72]

No one's tax dollars should have to pay for the college education of those who can afford to pay it themselves.

So my tax dollars should pay for other's education, but none of them should go towards my own childrens' education?

 

[mefordis]

So my tax dollars should pay for other's education, but none of them should go towards my own childrens' education?

After you pay your 35% tax, you can then use what's left to pay for your own kid's college.

 

[soccerdad72]

After you pay your 35% tax, you can then use what's left to pay for your own kid's college.

39.6% soon, it appears.

 

[NotUrsula]

Why should my tax dollars pay for something that I don't have the chance to take advantage of?

Because it is an investment in the betterment of society, and here is the part that you'll like best: helping people pay for higher education helps to break the cycle of intergenerational poverty, so that people who might otherwise have ended up dependent on lifetime entitlements turn into self-sufficient taxpayers.

Most of the people who are targeted for this possible forgiveness program are people who were taken advantage of by unscrupulous for-profit educational institutions that charged them way more than the program was worth in terms of earning power, leaving them now among the working poor, and sinking deeper into debt by the day because of the compounding interest.

 

[mefordis]

Because it is an investment in the betterment of society, and here is the part that you'll like best: helping people pay for higher education helps to break the cycle of intergenerational poverty, so that people who might otherwise have ended up dependent on lifetime entitlements turn into self-sufficient taxpayers.

Most of the people who are targeted for this possible forgiveness program are people who were taken advantage of by unscrupulous for-profit educational institutions that charged them way more than the program was worth in terms of earning power, leaving them now among the working poor, and sinking deeper into debt by the day because of the compounding interest.

Shouldn't the banks be the ones to forgive these loans for making the bad decision to loan money out for liberal arts degrees that don't typically end in lucrative careers?

 

[Mackenzie Click-Mickelson]

My lender said that loans were in forbearance and I needed to opt-out if I wanted to continue/resume payments. The message is still posted. Also checked out the coronavirus student aid website. It says the same.

Here’s what the coronavirus student aid website says.
https://studentaid.gov/announcements-events/coronavirus
are your loans private?

There are still loans that are Federal that may not qualify. I believe the figure put it at about 11% of loans that were Federal didn't qualify.

The CARES Act Forbearance applies to the following types of Federal loans:

"This forbearance will apply to only those student loans owned by ED – including all Direct and ED-owned Federal Family Education Loan (FFEL) Program loans in repayment."

That said there were updates and additional types of loans were retroactively applied for things but I don't have all the exact details in front of me.

 

[disykat]

Do people seriously think they can quantity "who can afford" to pay for their kid's college? I'm pretty sure we'd meet the rubrics for loan forgiveness if it comes through, but our kids have no loans. They worked, we worked extra, we made hard choices that we felt fortunate to be able to make. I watched people who make twice as much money than we do have their kids take out loans. It's not always about affordability, but about choices.

So, yes, if I thought there was a chance for "free" tuition payback vs.all the sacrifices we made to get our kids through school we'd look into making that choice. Maybe our kids could have done travel abroad or something. Maybe DH and I could have done some of thise home improvements or trips we postponed.

I try to be happy for things that help others even if they don't help me, but part of me will wish we'd gotten the "free money." I think it's human nature to want to take full advantage of opportunities.

 

[NotUrsula]

Shouldn't the banks be the ones to forgive these loans for making the bad decision to loan money out for liberal arts degrees that don't typically end in lucrative careers?

Most of those folks don't have liberal-arts degrees. The schools that got the vast majority of them into this were largely places like the late unlamented Vatterott and the like, trade schools which charged them $20,000 or so to become preschool teachers, HVAC techs, CNAs, etc., and also sold them on getting loans to cover that cost (admissions reps walked them through the loan applications). The ones who were lucky enough to graduate before the schools folded mostly don't make nearly enough to stay on top of the interest on their loans. The ones that got caught in the closures often had to start all over with a new set of loans and repeat all their classes at a new school before they could start that steady job they had worked so hard for.

Oh, and BTW, for those that are under the impression that Pell Grants cover the cost of bachelor's degrees for the deserving poor, think again. The maximum benefit of Pell Grants (now $6,495 for an academic year) hasn't changed in a very long time, while the cost of college has been rising exponentially. Most lifetime Pell Grants cover only the equivalent of a little more than one year's tuition at a 4-year public university, and not all of it at once, so these days it functions more as a discount than a full ride.

 

[EMom]

The day the federal government started handing out student loan money is the day the program fell apart. Back when banks did it, you had to prove you were a worthy risk. We’re your grades good? Was your major likely make enough money to repay a loan?

Today, a student with dismal grades can get loans to earn a useless major. And they do. That’s just ridiculous.

We scrimped and saved and made sacrifices to pay for DD’s college education. We limited her to a state school and said she had to choose a major which would pay well. I am in no mood to fund underperforming students with impractical, low paying majors through loan forgiveness. Those loans don’t disappear. WE pay for them. They chose their major and they signed for those loans. I didn’t. If loan forgiveness becomes a reality, I expect anyone who qualifies will jump at the offer. Who wouldn’t be thrilled to have someone else pay their debts?

 

[Mackenzie Click-Mickelson]

It's hardly surprising that the conversation would devolve into what it has. I don't agree with forgiving student loans and I have them. Oh I scrimped, I saved, I worked my butt off, and so did my husband. Comments regarding what type of degree, and presumed assumption off of what kind of student someone is who may be holding loans is predictable and yet does nothing to work towards solving the issue that often leads to student loans which is college costs in general and how student aid is determined. People want to complain about loans but tuition can be arbitrarily high as schools (yes even your in-state school, even your junior college) raise it to bridge funding gaps, books with high pricing, requiring students to stay on campus, course fees and more. But it almost always ends in "I don't to pay for your poor choices". FAFSA assumes parental involvement and leaves absolutely no option when that isn't the case (only when you're a grad, 24, etc). But it almost always ends in "I don't want to pay for your poor choices". For profit while someone's choice to go there also employs at time predatory practices and has gotten in trouble in the past of selling their degrees to prospective students that never panned out. But it's almost always ends in "I don't want to pay for your poor choices".

A program set up like it would be some people assume that a certain type of person would take advantage of it but I'm willing to bet the ones who would take most advantage of that are not the ones some would assume. I don't think loan forgiveness is the solution at all. I'd rather go after the root cause of the loans. YMMV on that one.

 

[NYCgrrl]

Something I‘m not worrying about.
DGD‘s college fund will be 200K when the time comes. Anymore than that and her parents need to kick in and I’m not a part of that conversation.

Still if I were asked for advise I’d have to have a better understanding of the current scheme: interest rates, etc.
I will say I’m not opposed to the idea. Times change, we need to take advantage of whatever options are available for future generations.

 

[mrs. magoo]

Why doesn't the Federal government just increase funding to schools so they can lower tuition. And by schools I mean all schools or increase the amount of money students are eligible to receive. My husband works at a private college. They give out as much money in aid as they possibly can but costs continue to rise for private colleges (salaries, insurance, etc.) Students should be able to have a choice in where they attend school. Everyone does not need to attend college and everyone should not be forced into attending a state school. Three of my children have attended private schools and my youngest will be attending a state school. We are fortunate that my husband has worked at the same college for 27 years. He is extremely underpaid compared to his colleagues at state schools but my kids worked their butts off in high school and got grades that qualified them for tuition exchange so we have only had to pay for room and board for them. Room and board is very expensive and I would bet that would not be included in any loan forgiveness.

 

[mom2rtk]

Why doesn't the Federal government just increase funding to schools so they can lower tuition. And by schools I mean all schools or increase the amount of money students are eligible to receive. My husband works at a private college. They give out as much money in aid as they possibly can but costs continue to rise for private colleges (salaries, insurance, etc.) Students should be able to have a choice in where they attend school. Everyone does not need to attend college and everyone should not be forced into attending a state school. Three of my children have attended private schools and my youngest will be attending a state school. We are fortunate that my husband has worked at the same college for 27 years. He is extremely underpaid compared to his colleagues at state schools but my kids worked their butts off in high school and got grades that qualified them for tuition exchange so we have only had to pay for room and board for them. Room and board is very expensive and I would bet that would not be included in any loan forgiveness.

Because when funding for students increases, tuition goes up rather than down.

 

[Cogswel_Cogs]

We did for eldest just the basic one. Right now interest has been suspended but we are payments anyway.

 

[Orion Nebula]

Only if we can't afford it, if we don't have the money to send our kids to college then I don't want to hold them back and tell them they can't go. Luckily my daughter is starting at community and we can afford it out of pocket. But if she wanted to start out at a university we would have to sell our house. lol

 

[KittyKitty]

Is there a cap of how much is forgiven?