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Re: Cancellation of
All you do is when the kid is born, drop $30,000 into a low cost mutual fund, like an S&P 500 index or similar. Donít touch it, and in 18 years that thing will have grown to about $150,000. Bam- college paid for!
1. Cost of college tuition alone has skyrocketed about 350% in the past twenty years,
2. The cost of renting an apartment is about 200% of what it was about twenty years ago,
3. Extra fees for college are about 400% higher than twenty years ago, and
4. Textbooks are now single-use items that cost over $125 per book per course, plus
5. The student loan industry is lightly regulated in terms of borrowing/payback potential,
it's no wonder that many students are suffering under crippling student loan debt. In short, if you haven't gone to college as a full time student in the past ten years, you are not in any way qualified to talk about why student loans need to be forgiven.
I attended a state university in the late '90s. At no point was a semester's tuition more than $1800 - and that was the semester in which I was performing in four performing ensembles. Nowadays, that doesn't even get you to qualify as full time.
Students are graduating now with tens of thousands of dollars of debt to earn a degree which pays them in much of the state the same real wage as it did ten or fifteen years ago - yet cost of living and cost of inflation have made it nearly impossible to live off that money.
This doesn't even include the DOZENS of predatory schemes set up by for-profit "universities" and "certificate programs" that basically steal thousands of dollars from students and then never deliver a legitimate degree. Or the fact that student loan debt is bundled, packaged and re-sold six or seven times to predatory lenders.
There needs to be a procedure in place for student debt forgiveness. With the current administration, there isn't much of one. There are millions of young Americans who simply can't make ends meet. Life isn't like what it was when Gen X and Boomers were fresh college graduates.
Millennials and soon Zennials also are confronted with job markets that (discounting the current shutdown-influenced situation) lock out people from entry-level jobs unless they are overqualified or over-certified (for which they need more schooling) or have experience that they cannot obtain without gaining entry level work. Add to that the fact that boomers are working "later than ever" and there's little to no room for vertical advancement for the Gen X crowd, add in the increase in outsourcing and overseas visas for much of the entry level, and you're in a perfect storm of "lazy millennials moving home after college" because they CANNOT find work and there IS NO OPPORTUNITY for them aside from waiting tables or flipping burgers - and the second they take a suboptimal job, they have to start paying half their terrible paychecks to pay for their usurious student loans.
Our entire economy relies upon it constantly expanding. When it contracts, the entry-level folks are hit the hardest. Those folks are most likely to be dealing with huge amounts of student loan debt. It's a much bigger issue than young adults who "don't want to keep their end of the bargain" - they literally can't.
And don't forget the most important part - if those young adults declare bankruptcy, the student loans STILL aren't forgiven. People are saddled with that debt, collecting interest, in some cases until they day they die .