Student Loans

[ftbaker1313]

I have two kids paying off their student loans. My beef is that the federal government should not be charging higher than prime interest rate on loans.

 

[CaptainAmerica]

I have two kids paying off their student loans. My beef is that the federal government should not be charging higher than prime interest rate on loans.

They're unsecured loans issued to debtors with little to no repayment history.

 

[Sinder]

I'd rather my tax money go to help people with student loans than tax breaks for the rich and bailouts for giant banks and corporations.

You won’t get an argument from me on that- that we shouldn’t be bailing out industries. As far as tax breaks the rich pay the most taxes, I’ve got no problem with them catching a break. Maybe the bottom 50% should start paying some more. Flat tax maybe? All pay our fair share

My problem is that I don’t think we should be paying for people because they decided to do more research on how to decorate their dorm room than on how student loans work.

 

[mom2rtk]

You didn't send them to Vassar for a double-major in French Literature and Ballroom Dance?

Nah. Sent them to Harvard for Art History degrees (no offense to anyone here who attended Harvard as long as they don't expect anyone else to help pay for it).

Actually 2 Engineers and an accountant. From local or state schools.

Lots of long discussions that started in early high school stressing the choices they had in front of them. What things cost, what things paid, the college lifestyle they could afford. Lots of investment in ACT prep manuals.

 

[wvjules]

Student loan forgiveness will make the sky high tuition situation worse rather than better.

Which is why I said we also need to address that issue.

 

[mom2rtk]

Which is why I said we also need to address that issue.

Sadly that isn't even on the table.

 

[Mackenzie Click-Mickelson]

Some used the word predators, knowing the word means targeted victims, and yet declare it's no excuse when ignorance and vulnerability is precisely the thing sought after by predators. That's tricky, it sounds like some don't think there is any such thing as a victim in financial schemes, so it sort of follows you might feel there is no such thing as criminals, just the crafty and the suckers. Not really how I see things, I can't follow where this thought train goes.
.

Agreed, plus I think people underestimate the impact of this.

Like always there are some people who fit the narrative.

However, just mentioning Navient for just 2022 (because they had financial judgements against them in the past) was $1.85 billion dollars in settlement due to "misled borrowers into costly repayment plans and predatory loans". A borrower went to their servicer for advice (something I would count on being responsible) and was given incorrect information or led to a repayment plan that was going to cost them more. And this was done as a means of norm practices, not a one off poor loan aid employee.

ITT Tech is another big name one on this front like other in trouble for profit schools promising jobs that pay well and now there's settlement money to be given to past students. ITT Tech no longer exists as they went through bankruptcy.

We push for trade schools as an alternative and yet don't seem to want to deal with keeping those in check.

We created programs for certain professions to have their debt absolved after a certain time period in those professions (like teachers) and then made it incredibly difficult in the end to qualify for it and misled so many borrowers.

And so much more.

 

[Mle8308]

If current student loans are forgiven, what about students starting college in the next few years? Are their loans going to be forgiven, too?

 

[kymom99]

Absolutely! I say that as a parent of 3 kids with school loans. We worked very closely with them to evaluate what they were majoring in, where they were going, and how much debt is reasonable.

My son got a letter from a private school inviting him to go there to run cross country. The school is very expensive even with good grades and merit scholarships. We had to have a tough discussion about that school being a poor choice in the long run. It hurt my heart, but it was my job to guide him before he became a full fledged adult.

 

[mom2rtk]

My son got a letter from a private school inviting him to go there to run cross country. The school is very expensive even with good grades and merit scholarships. We had to have a tough discussion about that school being a poor choice in the long run. It hurt my heart, but it was my job to guide him before he became a full fledged adult.

It really is hard. But good for you guiding him to consider the financial implications involved.

 

[Moliphino]

You understand that a "tax break for the rich" would be the rich people keeping more of their own money, right? Under no circumstances do the rich people get any of your money.

You still might not like it, and that's a fine position to have, but "your tax money going to the rich" is not a thing.

They don't get my money, the government does. Tax breaks for the rich generally go along with increases for regular people.

 

[mjkacmom]

Nah. Sent them to Harvard for Art History degrees (no offense to anyone here who attended Harvard as long as they don't expect anyone else to help pay for it).

Actually 2 Engineers and an accountant. From local or state schools.

Lots of long discussions that started in early high school stressing the choices they had in front of them. What things cost, what things paid, the college lifestyle they could afford. Lots of investment in ACT prep manuals.

But even the least expensive options can be expensive. Dd26 and ds22 ended up with about $80,000 in loans at our flagship, accounting and finance. Fortunately they have good salaries and only have the federal loans left which they can bang out in a tear of two (my kids knew they had to pick majors in well paying fiends), dd21 turned down Villanova for an OOS public that gave her $17,000 a year in merit, came in with 9 AP classes and graduated a year early. Her graduate program is 9 semesters and $150,000 after merit. She should be making 6 figures when she graduates but will most likely have to move back home to pay loans.

 

[CaptainAmerica]

But even the least expensive options can be expensive. Dd26 and ds22 ended up with about $80,000 in loans at our flagship, accounting and finance. Fortunately they have good salaries and only have the federal loans left which they can bang out in a tear of two (my kids knew they had to pick majors in well paying fiends), dd21 turned down Villanova for an OOS public that gave her $17,000 a year in merit, came in with 9 AP classes and graduated a year early.

Respectfully, you did something wrong.

If they got into Villanova, they would have gotten into some other comparable universities that meet 100% of financial need beyond the maximum Federal loans of $31,000.

Villanova was the first school I got into, and I was devastated because the financial aid was so crappy that I thought I wouldn't be able to go to college. Then I got into Notre Dame and Boston College the next day and their need-based aid was incredibly generous.

Her graduate program is 9 semesters and $150,000 after merit. She should be making 6 figures when she graduates but will most likely have to move back home to pay loans.

Holy crap if you're going into a $150,000 graduate program, you better have prospects far more solid than "should be making 6 figures."

 

[Allison]

Not to state the obvious but they moved off campus, some back home, some to first jobs and may have moved again since so because there have been no payments there is a huge chunk of people who are unfamiliar & may not be aware they need to reconnect. Everyone before and after is in step with the process.

They are adults. They can be responsible and figure it out.

 

[Disneychick13]

They don't get my money, the government does. Tax breaks for the rich generally go along with increases for regular people.

Uuuhhhhhhh……I don’t think it works like you think it does…..

 

[CaptainAmerica]

Their adults. They can be responsible and figure it out.

Not only are they adults, but in most cases we're talking about graduate students who are college-educated adults.

 

[barkley]

i just know payment resumption is going to be a nightmare with whomever took over from 'fedloan servicing' based on the god awful emails they've been sending for months. they will caution about the resumption, talk to the borrower providing updated information-then it's another email apologizing for errors on instructions on the prior/notification that a correction email will be forthcoming....rinse and repeat. i just have my kid file them in a folder and wait to hear what is finally decided-no information being sent to anyone until the powers that be decide what is going to happen. in the meantime the monthly payment is going into a savings account where it can be applied lump sum if there's no forgiveness.

 

[mom2rtk]

But even the least expensive options can be expensive. Dd26 and ds22 ended up with about $80,000 in loans at our flagship, accounting and finance. Fortunately they have good salaries and only have the federal loans left which they can bang out in a tear of two (my kids knew they had to pick majors in well paying fiends), dd21 turned down Villanova for an OOS public that gave her $17,000 a year in merit, came in with 9 AP classes and graduated a year early. Her graduate program is 9 semesters and $150,000 after merit. She should be making 6 figures when she graduates but will most likely have to move back home to pay loans.

If they came out with 80K in debt, they only did so because you co-signed.

I get it though. Each situation is different and has a different calculus. Normally I would just say you do you, and guide your kids to make the best decision for them. And we'll do us. But once this moves to tax dollars forgiving someone else's loans, that calculus shifts greatly.

You live in an expensive area. Thankfully we have reasonably priced state schools. And our 2 who went away qualified for the highest scholarship levels that pretty much covered tuition (only had to put together room and board, which gives some flexibility to cut corners).

 

[mom2rtk]

Not to state the obvious but they moved off campus, some back home, some to first jobs and may have moved again since so because there have been no payments there is a huge chunk of people who are unfamiliar & may not be aware they need to reconnect. Everyone before and after is in step with the process.

My kids each had very thorough online grad year student loan counseling. I find it hard to believe most schools didn't make kids aware of what their responsibilities were. Even if they graduated in the midst of Covid.

 

[LuvOrlando]

I do get some feelings of angst for those who already took on so much and paid it off. It's not a good reason to leave things be but they can be made whole with some tinkering.

Personally, I would be fine with reaching back with tax breaks to those who paid interest on old loans because it could be reasonably argued the wealthy wouldn't have used loans in the first place and if you started poor with loans and ended up rich, good for you, that is the American Dream isn't it? Most of the world educates its people and somehow we've been convinced it's not ok to do here,ummm says who? Expensive, sure, but we seed billions all over the world and nothing ever changes, enough already, I want US money here and I want it now. Dump the cost on top of that ridiculous pile and let the nose bleed wealthy sort it out in a street fight.