What Joe Biden or Donald Trump Could Do For Your Student Loans
- Thread starter jerseyshorejohnny
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beast of the east
Active member
What our politicians fail to identify is that countries that have tuition free college also have entrance requirements that select only the best and brightest. Public institutions are already heavily subsidized, and room and board is an expensive proposition even at the university's cost.
There is nothing wrong with NYC's CUNY system, community colleges as a low cost way to earn an associate's degree, and finish at state University.
I have cousin's kids who recently earned degrees by working their tails off. One kid got a civil engineering degree at UT in 2019 while working two jobs during the school year, and graduated with little debt and little/no help from his parents. Another cousin's kid moved to Florida to establish residency around 2012 for the required period of time, worked 2 jobs to save for college, then received in state tuition. HE also graduated debt free completely on his own.
One problem in our environment is the concept of entitlement to go away to colleges, frequently private institutions. Room and board alone comes with a hefty price tag. Student loans that kick the can down the road should be carefully analyzed by the student and their parents before committing large sums of money that will put the graduate (hopefully) in debt for decades.
I do like the plan to expand student loans to vocational training. I would also like to see mandatory payroll deductions for student loan debt that would avoid default. With many kids wanting to immeidately be on their own post college, they take on a very high cost of living near or in major cities that make it nearly impossible to pay back debt.
I think kids and their parents have to make careful decisions, perhaps limiting which schools they can afford to attend, based on the debt they are assuming. Loan cancellation or forgiveness is just another government entitlement program that makes others pay for that debt, and should be avoided.
There is nothing wrong with NYC's CUNY system, community colleges as a low cost way to earn an associate's degree, and finish at state University.
I have cousin's kids who recently earned degrees by working their tails off. One kid got a civil engineering degree at UT in 2019 while working two jobs during the school year, and graduated with little debt and little/no help from his parents. Another cousin's kid moved to Florida to establish residency around 2012 for the required period of time, worked 2 jobs to save for college, then received in state tuition. HE also graduated debt free completely on his own.
One problem in our environment is the concept of entitlement to go away to colleges, frequently private institutions. Room and board alone comes with a hefty price tag. Student loans that kick the can down the road should be carefully analyzed by the student and their parents before committing large sums of money that will put the graduate (hopefully) in debt for decades.
I do like the plan to expand student loans to vocational training. I would also like to see mandatory payroll deductions for student loan debt that would avoid default. With many kids wanting to immeidately be on their own post college, they take on a very high cost of living near or in major cities that make it nearly impossible to pay back debt.
I think kids and their parents have to make careful decisions, perhaps limiting which schools they can afford to attend, based on the debt they are assuming. Loan cancellation or forgiveness is just another government entitlement program that makes others pay for that debt, and should be avoided.
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beast of the east
Active member
I would also like to see limits placed on the amount you could borrow based on a table to pay back loans within 15 years of graduation and taking into consideration projected income based on chosen profession. A teacher would earn less than someone in medical school and to saddle a kid with debt who may start out earning 40K with a top end of 100K is imprudent.
There should also be a calculation that includes incentives to begin paying down immediately by working during summers and the school year. A kid who works his butt off working is a much better bet to pay down student loans and be responsible enough to pay off loans in a prescribed time. An art history major for example would have difficulty ever paying off a 150K loan in a reasonable amount of time unless there was demonstrated initiative to defray costs while in college.
There should also be a calculation that includes incentives to begin paying down immediately by working during summers and the school year. A kid who works his butt off working is a much better bet to pay down student loans and be responsible enough to pay off loans in a prescribed time. An art history major for example would have difficulty ever paying off a 150K loan in a reasonable amount of time unless there was demonstrated initiative to defray costs while in college.
JohnnyFever
Active member
Beast that's actually a great idea. Have some kind of career outlook vs. reasonable debt ratio. I for one am among many millennials who were not really cautioned enough about just how much money you will be borrowing and needing to pay back. I know guys who just have a HS diploma and are in unions in the city making $200k including overtime with zero debt. I think it's clear that our generation was raised to believe that kind of work was "beneath" people even though guys getting their hands dirty in the city unions are making tons more than even white collar jobs requiring advanced degrees. Many just assume wearing a tie to work means you make more than the guy with dirty all over him. The older I get, the more I understand why these guys make so much...you always have work available. Your regular job, side jobs, etc. etc. Many have to turn customers down. Plumbers, carpenters, handymen, electricians, etc. When many my age were first entering college, the tuition did not seem real (like monopoly money)...until we graduated and that first bill came!
beast of the east
Active member
[quote="Mike Zaun" post=398692]Beast that's actually a great idea. Have some kind of career outlook vs. reasonable debt ratio. I for one am among many millennials who were not really cautioned enough about just how much money you will be borrowing and needing to pay back. I know guys who just have a HS diploma and are in unions in the city making $200k including overtime with zero debt. I think it's clear that our generation was raised to believe that kind of work was "beneath" people even though guys getting their hands dirty in the city unions are making tons more than even white collar jobs requiring advanced degrees. Many just assume wearing a tie to work means you make more than the guy with dirty all over him. The older I get, the more I understand why these guys make so much...you always have work available. Your regular job, side jobs, etc. etc. Many have to turn customers down. Plumbers, carpenters, handymen, electricians, etc. When many my age were first entering college, the tuition did not seem real (like monopoly money)...until we graduated and that first bill came![/quote]
Great post! Academic elitism is almost snobbish. It's funny you say that. Was at a service station in town today. The guy who runs the repair business went to law school. Really great guy too
Great post! Academic elitism is almost snobbish. It's funny you say that. Was at a service station in town today. The guy who runs the repair business went to law school. Really great guy too
JohnnyFever
Active member
I think it's a matter of getting the word out to HS kids that hey, you realize you can make at least the same if not much more than the other kids going off to college without paying a ton a month off in debt right? If it's actually broken down that say your average house will have around a $3,000 mortgage monthly and you may have to pay $900/mo. if you go to college to pay off debt for decades, how many would still do it? So many I graduated with majored in sports communications and ended up getting your typical average boring Joe job (totally unrelated to sports) in a cubicle starting at $45k with poor benefits.They have to pay over $100k for that! Even the ones that did make it into the field were surprised to find that even with a cool title and a cool job, it paid very poorly. College makes perfect sense if you know you are on track for a cushy 6 figure job not too far into your career...but if you start at like $30k you will have a very tough life.
beast of the east
Active member
[quote="Mike Zaun" post=398709]I think it's a matter of getting the word out to HS kids that hey, you realize you can make at least the same if not much more than the other kids going off to college without paying a ton a month off in debt right? If it's actually broken down that say your average house will have around a $3,000 mortgage monthly and you may have to pay $900/mo. if you go to college to pay off debt for decades, how many would still do it? So many I graduated with majored in sports communications and ended up getting your typical average boring Joe job (totally unrelated to sports) in a cubicle starting at $45k with poor benefits.They have to pay over $100k for that! Even the ones that did make it into the field were surprised to find that even with a cool title and a cool job, it paid very poorly. College makes perfect sense if you know you are on track for a cushy 6 figure job not too far into your career...but if you start at like $30k you will have a very tough life.[/quote]
Good points. The student loan system has helped an awful lot of people, including me, but my total student loan debt was paid off by me in less than 4 years, and was so small that I was able to purchase my first home in the meantime. The bad part of student loans is that it fueled the skyrocketing cost of a private education. Colleges were never meant to be 5 star hotels (not that dorms are today even in the most expensive schools) but the beautification of schools, landscaping, impressive new edifices, health clubs, coffee shops, and doubling of the infrastructure all greatly increased the cost of tuition.
Any kid opting for a private education today without parents able to pay for a large chunk of it, or without considerable scholarships or grants is putting shackles on in terms of financial debt. The answer is not a bailout for those who willingly took on that debt. It would be akin to buying a bmw when you shoul dhave purchased a toyota.
Good points. The student loan system has helped an awful lot of people, including me, but my total student loan debt was paid off by me in less than 4 years, and was so small that I was able to purchase my first home in the meantime. The bad part of student loans is that it fueled the skyrocketing cost of a private education. Colleges were never meant to be 5 star hotels (not that dorms are today even in the most expensive schools) but the beautification of schools, landscaping, impressive new edifices, health clubs, coffee shops, and doubling of the infrastructure all greatly increased the cost of tuition.
Any kid opting for a private education today without parents able to pay for a large chunk of it, or without considerable scholarships or grants is putting shackles on in terms of financial debt. The answer is not a bailout for those who willingly took on that debt. It would be akin to buying a bmw when you shoul dhave purchased a toyota.