[ Post a Response | The Yellow Board ]
Re: Cancellation of
You can plan for college with less of a down payment but the key is you have to plan. It starts from day one and requires discipline. There is a lot in that initial post and while cost has indeed increased it isn't a shock and therefore you have 18 years to plan for it. There are also ways in which people can cash flow part of college while not having to take out a ton of loans, load up on DC classes that will actually apply to your major, (again, requires planning), and for people getting out and not getting paid a living wage I don't understand that. Teachers get paid well. Most commonsense degrees pay well. If you came out of college and can't get a job and can't earn a living then it may be less on the college and more on the person and their choice of degrees. You can live on 40 to 50k as a 22 year old graduate. Kids need to go into those loans understanding compound interest and how to get it paid off and it is possible to reduce the "apartment" cost by sharing the cost. 2 or 3 people in an apartment can get the cost easily down to 300ish a person per month with food and utilities at about 500 max.
The bottom line is parents and students need to understand what they are doing and why they are doing it. These are young adults. Learn to make decisions like, "will this degree get me a job"! I'm getting ready to spend about 300k for my child to go to college. I know how expensive it is. Student debt forgiveness is not the answer.
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 .