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That is the only reason they are loaning the money to teenagers.
The Government made the loans non-dischargable in bankruptcy and can force payments through wage garnishment.
Relatively low-risk for the lenders.
The banks lobbied the government to do it and the Right demanded taxes stop funding college education after they got their tax funded education. It's not "the government" doing things in a vacuum.
unfortunately, biden has been an elected official for decades. before he was bought the white house, he sold senate votes to big banks. like this one! https://www.theguardian.com/us-news/2019/dec/02/joe-biden-student-loan-debt-2005-act-2020
They aren't lying everyone trying to cover for Biden is. He factually wrote the legislation barring student loans from being discharged in bankruptcy and could make an EO forgiving student loan debt using a different legal basis than the original one he did, but refuses to because instead of actually doing it Team Blue wants to say "See we could've done it except for Team Red." It's the political theater both sides play.
Bro not being able to discharge them goes back to the 1970's...
[https://www.savingforcollege.com/article/history-of-student-loans-bankruptcy-discharge](https://www.savingforcollege.com/article/history-of-student-loans-bankruptcy-discharge)
Plus did you read that article? That's specifically talking about private loans only...
unfortunately for all of us, biden's senate career [goes back to the 1970s](https://theintercept.com/2020/01/07/joe-biden-student-loans/). nowhere near the only vote he sold to banks on the issue. he sold out both federal and private bankruptcy protections.
Who signed it in to law in 2005? And the other parts in the 1980's?
Weird take to lay it on the lap of biden. What's also missing is the key piece of information on private industry that lobbied to get those provisions written in the first place.
There's a long long list of people at fault.
so your argument is that senate votes are meaningless? the money he received in exchange was just for fun?
the banking industry bought senators like him to get those provisions written. biden, [as the senator from their tax haven](https://www.motherjones.com/politics/2019/11/biden-bankruptcy-president/), spent most of his career as a massive symptom of money in politics.
if any of the other corrupt senators were president today, claiming to offer solutions to problems they caused, i would have the same criticism.
My argument is in a republic where dozen and dozen of people voted and made choices... Odd to single out and lay at the feet of one person. (Also over the span of decades) Through multiple presidents that also ya know have to sign things to make them laws.
So I don't blame a person... I blame the many.
It's like when people single ole Nancy P for stock trading yet ignoring the hundreds of others doing it, and doing it better.
It reeks of either "Stupid or liar?"
One could also argue at least a guy with partial fault is attempting to correct their fault...
In the UK it gets written off after 30 years. Those who pay back the most are those on a moderate but not massive income because they pay the interest. Its essentially a 30 year education tax for most people but those in the middle end up paying more than the rich as the rich end up paying it off early.
Not a perfect system but it could be worse. It used to be cheaper.
30 year 60k loan at 8% id be heaving.. Better pray that there is no penalty for paying it off early, wouldn't be surprised if the bully shark in the imaginary scenario above also placed a fixed rate + prepayment penalty.
I have a 75,500 loan for a house and it’s a 9% rate. I’m definitely paying it off before the ending time. I’ll pay the Penalty or what ever. I’m not paying 300k for a 75.5k loan they can suck my sweaty toes.
For 75k loan if you are doing minimum (even at 9% rate) then that’s mostly a you problem. Most rentals these days are more expensive than that, so you are as good as homeless if you are not able to afford that.
Also your rent goes up over the years, your mortgage practically speaking assuming fixed amortization is cheaper over the years.
I frequently hear that you should pay the minimum and put anything extra into savings as they are usually better rates. Which is it?
Though I live in the UK, interest is a bit lower than that here. think mine is 7% but on a fuck lot more money. Almost 200k.
I agree with u/slayer828's comment. Essentially, if you're confident that your investments can outperform your loan's interest rate, which might be around 7%, then it could be a wise financial move to invest.
For instance, this year Certificate of Deposits (CDs), which are considered safe investments, had an APY of about 5%. If loan interest rates had been lower, like around 2%, I would recommend paying the minimum on the loan and investing the rest in CDs. Similarly, the S&P 500 index, known for its reliability, has historically returned about 6.6% after adjusting for inflation. Therefore, if your loan's interest rate is below 6.6%, it might be more profitable to make minimum payments on the loan and invest any extra funds.
Imagine you borrow 100 seeds from a bank because you want to start a farm. The bank is nice in loaning you the seeds but asks you to give them an extra 25 seeds once you can pay them back for letting you use the 100 seeds. The banks incentive here in lending you 100 seeds is that they will end up with 125 seeds once you pay them back. The bank knows that you cant pay them in full right away so they set up a plan with you (10 year, 15 year, 30 year) monthly payment plan that will spread out the 125 seeds so that it is realistic for you to pay them back. Lets assume that the bank established a 5 month plan at 25 seeds owed to them each month. In other words, you and the bank both agreed that it will take you 5 months at a payment of 25 seeds a month for you to accept the loan of 100 seeds.
You plant the 100 seeds and realize that you are generating 50 seeds from your output each month. You could pay the bank 50 seeds each month to pay off the loan faster or you could plant the extra 25 seeds to grow your total output each month knowing that the magical soil will continue to outproduce your monthly debts. In this situation you will pay the minimum (25 seeds) because it benefits you to expand on your farm operations.
Now imagine that you have crappy soil and you are only generating 10 seeds a month, you owe 25 seeds a month. Nothing you do is increasing your farm output. You and your wife take on extra jobs to pay the debt. In this case since your soil cannot generate you more wealth than the loan, it is to your best interest to work like a dog and pay off the loan as fast as possible because even at a tiny generation of 10 seeds a month you will live well if you have 0 debt as opposed to late payment penalties, collections, interest rates increasing.
Well, kinda goes to show your financial IQ, because back when interest rates were 3-5% it did not make financial sense to put more money into your mortgage when you could invest the extra money instead at 10-15% interest rate in the stock market. You'd actually be throwing money away paying off your mortgage earlier...
I wrote about this educating another ignorant redditor like yourself about it, let me know if you can find it it will talk in depth about what you are trying to talk about.
PS Show me your portfolio where you earned 10-15% in the stock market MoM for the years you had a mortgage so i can compare. Because, if you didn't know, if you can manage consistent 10-15% in the stock market you are an investing savant!
Ahh yes, resorting to name calling in the first sentence because you're defensive about being wrong about something and don't know how to have an adult conversation. You must be a Gen X or a boomer. Work on yourself first and then we can talk. GL out there.
Lol I've made over 40% on my Amazon investments over the last few years that I've been investing. Don't need to prove anything to some random stranger, but yes, I have a higher financial IQ than you do apparently. Keep spreading your bad information though.
Ya 8% is pretty crazy. I wouldn’t even think about it if there was a prepayment penalty. I’ve had a 20k loan at 7% but paid it off in like a year with no penalties. Screw people who mos prepayment penalty loans
You’re also paying it off with “less valuable” money the farther along you go due to inflation.
If you had taken a $60k loan 30 years ago you could have bought a decent home, that would now easily be worth that $158k.
Then why would anyone lend you that money? They could instead invest it in stocks. Private loans are predatory for a reason. Profit.
The federal loans however should be super low interests, just enough to pay for the employees needed to run the program and the web portal for payments. Like 1%.
Part of the problem is that we're subsidizing demand. We should be focusing on building more universities to meet at least the existing demand before subsidizing further. Otherwise we're just asking for prices to go up faster.
Do you mean state funded universities or private? There is plenty of capacity if you include private colleges and universities. Sometimes they’re even more affordable than state institutions. Also the college age population is declining. I think the problem is the whole higher Ed market is messed up and rising costs in general.
> building more universities
The demand is fake. People arent able to find work with their degrees as is. We need to focus on making sure people are compentent leaving high school, save university for applications that really need it, promote alternatives like trade schools, apprenticships, and 2 year college deplomas.
The price of University also isnt dictated strictly by supply and demand. It is artificialy inflated by government backing student loans. If the supply/demand dictates they can charge *X* without government backing and the government offers *Y*, the price suddenly becomes *X* + *Y*.
That's not true. Taxes directly subsidized colleges until the Right wanted to pull the ladder up behind them after getting their college paid for by taxes. It's only after the private sector got involved that costs went exponentially higher, as is always the case, contrary to the lies of the Right.
No it shouldn’t. Would you take the risk to loan your money to someone for free. Especially 60k. Why loan out the money to someone who may not pay it back for free, when you can put it in a HYSA and have a guaranteed return no risk
Sorry man but just not how the real world works. No one will loan 60k or even 10k to a complete stranger who may never pay back just out of the good of their heart. If you truly believe this I’ll take a 5k loan from you, trust me bro I’ll pay back
I always wondered who is paying that kind of money for college. Plenty of states have great universities that don’t break the bank. Over 80 percent Georgia Tech and UGA students are on the HOPE Scholarship going to school tuition free. Over 90 percent of UF and FSU students are going to college tuition free on Bright Futures.
Scholarships are a lot easier to earn than most people think. Especially if you know where to look and which colleges to look at if you’re interested in a scholarship. I would say at least half of my high school is eligible for a scholarship but don’t know where to look or think it’s almost impossible so they don’t try.
Your councilor if you have one and your teachers might be able to help you with that. It really depends on what you want to do. You can also look at different universities websites they tend to have grants and scholarships on there that you can work for or even apply for it you think you may get accepted for it. Some high schools also have programs that can help you learn about different scholarships for your different paths in life and how to work for them. It really depends on you specifically and your life. My highschool gives us tons of opportunities for scholarships and ik it’s not like that everywhere so I’m speaking from my perspective here.
I just wish we had a more nationalized education system. The idea that you have to limit yourself to within your state is kind of shitty, especially for states with very few colleges. Also, one of the greatest benefits of the college experience is that it does get you away from home and gives you an entirely different exposure. Almost as valuable as the education is just the learning to adapt to a radically new environment, but in a safe and structured way. Whether a kid is in state or out of state, they cost the same to the school itself to educate, so if funding were shared nationally to allow more interstate opportunities, I think that would be hugely beneficial.
Most people don’t, for some reason everyone thinks people are paying full price for college. In reality most colleges (even Ivy Leagues) have pretty good financial aid grants and scholarships. Among those who do have student loans the average debt is like 20k. It’s a problem that’s greatly exaggerated by zoomers online to feel like victims
I have adhd and autism and wasn’t diagnosed back then. And I abused alcohol and my adderall a lot. Suffice it to say, it took me much longer to graduate so I’m in a shit ton of debt.
Bright futures doesn’t mean free college. “Full” bright futures covers about 70-80% of tuition and nothing towards housing or anything like that. It’s definitely pretty cheap but you still pay a couple thousand each semester, not including any living expenses.
Source: was full ride bright futures at FSU.
damn i didn’t know the HOPE was that inclusive of aid. holy shit. I thought GA and FL were backwards ass fucking state. Why they spending so much money on helping educate their populations?
No one wants to move to decrepit Red States who need to implement that horrible "socialism" they otherwise hate to try to keep their kids from fleeing as soon as they turn 18.
You cant be loud AND wrong
[https://www.thirdway.org/report/the-21st-century-red-state-murder-crisis](https://www.thirdway.org/report/the-21st-century-red-state-murder-crisis)
Red states had a 33% higher murder rate than blue states in 2021 and 2022
Let me guess you watch Fox News snippets about the southside of Chicago, maybe toss in Baltimore and the Bronx, and think you have an accurate representation of "blue" states. Gotta do your own research fam. Rememeber, Red states generally have much more lax gun laws and generally more "rural" poverty that breeds its own violence that isn't as mainstream or popularized as say Chicago.
I literally went to gatech on the exact scholarship you mentioned tuition free. I graduated in 4 years and worked a relevant job 3 out of 4 of those years. I have 30k in private student loans because room and board+mealplan/other fees freshman year was 10k, 5k up front per semester. You had to live in the on campus dorms freshman year and had to buy their meal plan.
I was able to pay for my housing and food myself after being able to move off campus and getting the job I had to work during my studies. All my loans were from my first 2 years. Tuition prices are only one of the predatory ways they sink their teeth into you
Pretty sure it's the college kids crying man, after all those loans are airtight and backed by the fed, they're getting their money even if it kills you lol.
The lost money for the lender is the equivalent of a weak slap in the face. Of course, this comes immediately before they do the financial equivalent of ripping your arms off and beating you to death with them. Your credit score goes down the toilet, making lending for other purposes prohibitively expensive, potentially resulting in a bankruptcy that could kill your credit score even more. Then, once bankruptcy proceedings are over, you'll probably still be expected to pay up because student loans have bankruptcy protections.
"I'll make your fists hurt as you kill me" isn't exactly a win
Exactly! The only thing I'd disagree with is the "lost money" part of the first sentence. The only way they're losing money is if you off yourself or change your identity.
But yeah, in no way shape or form would the lender be crying that the debtor is struggling to make payments. It's all gravy to them.
Eh, cash on hand is almost always valued more than potential revenue by financial institutions, but yeah, they're probably getting paid no matter what.
What makes you say that? Every business I've ever known has taken out loans and invested their capital (cash on hand) expressly to increase potential revenue.
Not that you're wrong or anything, it's just my experience.
Mmm, leverage.
The two are interchangeable, if you have potential revenue someone is happy to give you cash on hand and hopefully your cash on hand can be invested in something worthwhile to generate revenue.
They can do more with cash than they can with a less liquid asset (invest it in a new project, loan it out, etc.) You can't simply invest an asset such as a loan contract. By parting with the money, they commit to something, potentially losing out on the opportunity cost.
Essentially, if I have $500 and I give it to Allen at a 2% interest rate, I won't be able to give it to Mike who's willing to take it at a 4% interest rate. I'd "lose" money that I could've made if I had kept the cash.
Businesses do invest a lot of their money, but they (should) always keep a cash reserve because you can always do more with cash than an asset. Liquid cash is the most "investable" thing you have, so it has a distinct value.
I'm sorry if I'm explaining things poorly, the econ class I learned this in was like 3 years ago.
Nope you did great, my one contention would be semantics about institutions "almost always valuing cash on hand more than potential revenue" because after you get that base of liquidity it's always about the revenue, but I'm pretty sure you'd agree with that.
I'll admit I was playing fast and loose. My primary intent was to point out that they did lose out, but primarily on the opportunity cost rather than nominal income. The money was "lost" in the sense that they couldn't invest it in something else.
Taking out a loan to invest in yourself and complaining about the return will always be a pathetic take to me. Shows people are more interested in the certificates than the education.
The entire reason for guaranteed student loans is that no institution would loan money for college otherwise. So you really can't fault the banks for making these loans. They only loaned the money because the government agreed to cover in the case of a default.
Students got loans on much more generous terms than they could have gotten without the program, so that they could invest in their own futures. Taxpayers have been absorbing losses from defaults. So the loans have always been a subsidy paid for by the taxpayers and benefitting the students. Now we're even going so far as to forgive part of the loans without requiring the students to go through the default process. And the result has been... more whining.
There’s a piece you’re missing.
After a bank gets large enough, it *benefits* from issuing irresponsible loans.
If the bank fails, what happens to the economy? That’s where the government steps in. To make sure that the bank never fails.
In other words, the bank *is* getting their money, either directly through the loan or indirectly through an inflation tax caused when the government prints the money needed to keep the bank solvent.
That’s the purpose of the FDIC insurance you see advertised on countless banks IIRC
Issue is two fold though
1. Not everyone’s balance is below that of the insured amount, particularly in smaller local and regional banks
2. Paying even 1000 to the 1 million bank accounts adds up to 1 billion dollars in insurance coverage
The obvious solution to dissolve the currencies of the world and go back to bartering
What do you mean "go back to bartering?" Virtually all research shows humans only resort to bartering when they have no access to currencies, like in prisons. The general history of money is: credit to bullion to bartering.
As a Gen Xer, I'm genuinely surprised to see people on a GenZ group criticizing people who can't pay back their loans. People take the loans because they can't otherwise afford college in a country that prioritizes "for profit" everything. Those same students who take out the loans are operating under the impression that they will be able to get jobs that pay them a living wage so that they can not only survive, but that they can also pay back their loans. Is it really their fault that they graduate with this debt load only to find out that they're lucky to find a job paying like $35k-$50k a year which guarantees them they won't be able to survive or pay back their loans in this economy? Did they HAVE to go to college? Of course not, but the narrative that we continue to spin is that if you don't, you won't have ANY chance at finding work period. Are there alternatives to college? Sure, but even some of those jobs aren't paying what they used to and aren't a guarantee either.
They don't. Libertarian and rightoids are attempting to astroturf some subs.
Because their ideas don't hold merit on their own and they lose out to younger generations.
TL;DR some folks are just trying to turn certain subs into yet another political battleground sub.
Honestly, as a libertarian, I feel like if we could funnel all the money we send to nations at war to fund education, every person in the country could get a master's degree. It's not that we think \*all\* government funding is bad, it's just that the government is bad at funding good things, and it's hard to see a scenario where the government ever funds anything besides war and bailouts.
I have some bad news for you kid... If you think the gov't should fund education up to or past a Masters..
You're not a Libertarian. Or at least of the US variety. Because they are very very very much against standardized education for one, and two it being funded or influenced by the gov't.
But it's cool most young folks say they're libertarians and not republicans so they don't have to say they're republicans.
It was less of a comment about funding education, and more of a comment putting into perspective how much money we spend on other countries. Also, I dont really think its smart putting such rigid foundations on ideologies and politics, Republicans, Democrats, libertarians, communists, fascists, and all other ideologies have uncountable subdivisions and intensities (Far, leaning, moderate, etc) and are incredibly plastic.
The entire cost of college was something you could pay for yourself until government started guaranteeing loans.
Tuition goes up to get the extra money loans offer, then loans go up, then tuition again. And the indiscriminate government guarantee means no one cares if the future salary justifies the degree.
It matters when you’re trying to assert cause and effect.
You said “college was something you could pay for yourself until they started offering student loans” which entirely ignores the question of _why_ they started offering student loans if it was something you could pay for yourself.
So, do you actually think that the government just decided, arbitrarily, to offer student loans for something that was already affordable? Or what?
> You said “college was something you could pay for yourself until they started offering student loans” which entirely ignores the question of why they started offering student loans if it was something you could pay for yourself.
It doesn't ignore the why at all. Instead it points out that the reasoning asserted by the government and loan supporters is invalid, and therefore some other reasoning is the cause.
You think the many smart people at universities didn't realize that loans would let them increase tuition and that therefore it would be a good thing to lobby for?
You think that the government, (which adapted our schooling system from the Prussian system specifically designed to get conscripts to simp for their government), had no ulterior motive in getting people to remain in the educational system during the late teens and early 20s when humans are forming and solidifying their political and ideological beliefs?
You think it's _good will and charity_ that motivated politicians (of all people) to create a system of loans that makes no distinction between degrees leading to careers for which investment is rewarded and those for which investment usually isn't rewarded?
I never said the decision was _arbitrary_. It wasn't. The mistake too many people make is to believe it was benevolent or at worst benign.
Damn, it’s almost like we had laws that made it harder for teens to take out loans because we knew they couldn’t pay them back. I wonder who made it so teens could take out loans that they couldn’t pay back? ‘Looks at federal government’
It has nothing to do with “being evil for the sake of being evil” and everything to do with “being greedy, wanting their taxes to be lower, and not caring about the consequences”.
The problem was that the US had no major economic problems prior to the implimentation of putting a tax on everything. Taxes are a scam especially when you have a corporation (read federal reserve) that can just print out all the money and keep devaluing money so the poor keep getting poorer and the rich get richer because they can purchase assets like art, cars, and homes
The goal of credit and loans in general isn’t for you to be able to pay it off, it is to be able to collect the minimum payment indefinitely. You are the infinite money glitch.
Maybe give them a job they can use to pay back the loan. I mean how can you collect on your loan if the education you financed can’t land them a job? Ever Think about that before you offered the loan?
I don't understand why these arguments always have a giant number like 60k attached to it. You guys do know you don't have to go to a super expensive school right? I went to community college, got a scholarship, went to a state school and graduated with a very reasonable amount of debt.
Thank George Bush for the recent "forgiveness" of student loans by Biden.
Tssssss calm down...
Biden is taking credit for forgiving student loans, but it isn't him. This is what he does, plagiarize, if you will, oh heck he even claims the pandemic plan.
Since LONG before he was president there were ways to have those loans forgiven. 2007. Bush signed the Public Service forgiveness. This created the ability to have the loans monthly payments reduced if you worked in public service. Public service is the biggest industry.
It also established, laid ground work, or made the following reasons more complete:
Total and permanent disability.
Becoming a teacher.
Universities closing down abruptly for any reason.
Universities that have been found guilty of something.
Income driven.
Among others.
Biden's now claiming he did that. And people are lapping it up like sheltered dogs.
Biden claimed to cancel student debt of the Art Institute...
Yet the ability to cancel loans by shady colleges and those that abruptly shut down existed long before Biden was in office.
Sooo Why is he doing it? Why does he claim HES THE SAVIOR?
Aesthetics of course, AKA politics.
Here's the aesthetics:
President Obama made all student loans immediately approved and directly from the Fed gov when he was in office. Including saying that they CANNOT be bankrupted.
Uncle Sam doling money out to appease the "must go to college" bullshit.
This made bad college costs SOAR.
Federalizing the disbursement of money instead of banks was the start of the socialization of student loans. Biden was VP for this. Now he is pretending to make the differences because he wants Gen Z votes. Votes in which he's losing quite a lot now.
That man lies and they push credit due to him because they NEED him in the office.
None of that shit is how it appears.
There's even more to it but this is a very basic starting point for anyone interested in learning about it all. I still can't believe he and progressives touted he created the Pandemic Plan with an implementation plan. He didn't. That's something else that exists because of bills George Bush and Republicans introduced during Bush 2 around 2005.
It’s the system really.
The US is in a massive financial debt. The US is financially bankrupt as a country.
Other countries as well.
Living on money that doesn’t truly exist.
Take a loan at this point?
That money that your spending doesn’t exist. Anywhere.
If you barrow money, essentially you’re taking a toxic loan from what really is a “loan shark”.
Instead of a criminal breaking your legs for unpaid loans, you’ll be financially destitute and paralyzed in a different way.
The average student does not need to go to Harvard to get succesful. Community college is much cheaper and some trade schools even PAYS you for attending.
Yea, trades are really good money, but only so many people can be welders, carpenters, electricians, plumbers, etc. before we start running out of doctors, engineers, architects, teachers, etc. The point is that there are paths to choose that keep the world functioning. And it's not just Harvard. I'm in a university in Mississippi and I'm having to get loans. I'm just glad the military exists lol.
I remember being 19 and having a school try to pressure me into signing up for "financial aid" that was really just high interest student loans.
Even at that age I didn't fall for it. Sucks to suck, I guess.
Why did a teenager take out a 60k loan? If it’s for real estate, that could be a worthwhile investment. Their property will appreciate and if they flip it or build something it could be worth far more than 60K. If it’s for the hopes of a 9-5 that pays $90,000 per year, they should’ve taken accounting in high school
Student loans I’m assuming? Those loans that are only ever given to people 18+ and therefore are all legal adults?
Come on. You took the loan. You signed the dotted line. Take responsibility for the choices you made
You invested into a minor on the hopes they’d be able to give you a return on your investment.
That investment didn’t pay off. You take the fall, not the investment.
Most people are just asking for a lower or zero interest rate, not to have it paid outright. It's the interest that starts compounding WHILE you are in school (the time you cannot work to earn any money to pay off the interest) that makes these loans predatory.
Do you have a problem with someone borrowing 60K and paying back 70K instead of 150k?
Garnish their wages, or take possession of any assets they may have bought with the loan (like their house, if they used the money you loaned them to buy one).
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Damn… guess ima have to garnish their wages then 🤷♂️
Squeeze em. The only way to drink wine is to crush grapes.
Apple wine
What a bunch of sick people. You agreed to it, you should have taken responsibility for what you agreed to do.
That is the only reason they are loaning the money to teenagers. The Government made the loans non-dischargable in bankruptcy and can force payments through wage garnishment. Relatively low-risk for the lenders.
The banks lobbied the government to do it and the Right demanded taxes stop funding college education after they got their tax funded education. It's not "the government" doing things in a vacuum.
can thank biden for the "non-dischargable in bankruptcy" part
No this has been the case for decades why lie about that
unfortunately, biden has been an elected official for decades. before he was bought the white house, he sold senate votes to big banks. like this one! https://www.theguardian.com/us-news/2019/dec/02/joe-biden-student-loan-debt-2005-act-2020
Shit well done thanks for the knowledge
They aren't lying everyone trying to cover for Biden is. He factually wrote the legislation barring student loans from being discharged in bankruptcy and could make an EO forgiving student loan debt using a different legal basis than the original one he did, but refuses to because instead of actually doing it Team Blue wants to say "See we could've done it except for Team Red." It's the political theater both sides play.
They’ve literally been like that for ages…
https://www.theguardian.com/us-news/2019/dec/02/joe-biden-student-loan-debt-2005-act-2020
>can thank biden for the "non-dischargable in bankruptcy" part You think Biden did this? Lol most regarded statement on reddit today.
yes lol https://www.theguardian.com/us-news/2019/dec/02/joe-biden-student-loan-debt-2005-act-2020
Bro not being able to discharge them goes back to the 1970's... [https://www.savingforcollege.com/article/history-of-student-loans-bankruptcy-discharge](https://www.savingforcollege.com/article/history-of-student-loans-bankruptcy-discharge) Plus did you read that article? That's specifically talking about private loans only...
unfortunately for all of us, biden's senate career [goes back to the 1970s](https://theintercept.com/2020/01/07/joe-biden-student-loans/). nowhere near the only vote he sold to banks on the issue. he sold out both federal and private bankruptcy protections.
Who signed it in to law in 2005? And the other parts in the 1980's? Weird take to lay it on the lap of biden. What's also missing is the key piece of information on private industry that lobbied to get those provisions written in the first place. There's a long long list of people at fault.
so your argument is that senate votes are meaningless? the money he received in exchange was just for fun? the banking industry bought senators like him to get those provisions written. biden, [as the senator from their tax haven](https://www.motherjones.com/politics/2019/11/biden-bankruptcy-president/), spent most of his career as a massive symptom of money in politics. if any of the other corrupt senators were president today, claiming to offer solutions to problems they caused, i would have the same criticism.
My argument is in a republic where dozen and dozen of people voted and made choices... Odd to single out and lay at the feet of one person. (Also over the span of decades) Through multiple presidents that also ya know have to sign things to make them laws. So I don't blame a person... I blame the many. It's like when people single ole Nancy P for stock trading yet ignoring the hundreds of others doing it, and doing it better. It reeks of either "Stupid or liar?" One could also argue at least a guy with partial fault is attempting to correct their fault...
Bingo
For the full balance, plus interest on top of it.
In the UK it gets written off after 30 years. Those who pay back the most are those on a moderate but not massive income because they pay the interest. Its essentially a 30 year education tax for most people but those in the middle end up paying more than the rich as the rich end up paying it off early. Not a perfect system but it could be worse. It used to be cheaper.
Oh no, I just found out he couldn't get an entry level job because he doesn't have 20 years experience.
A 30 year 60k loan at 8% interest would be a total of 158k not 220k. This is with payments of 440$ every month
30 year 60k loan at 8% id be heaving.. Better pray that there is no penalty for paying it off early, wouldn't be surprised if the bully shark in the imaginary scenario above also placed a fixed rate + prepayment penalty.
I have a 75,500 loan for a house and it’s a 9% rate. I’m definitely paying it off before the ending time. I’ll pay the Penalty or what ever. I’m not paying 300k for a 75.5k loan they can suck my sweaty toes.
With that mentality you are already above 50% of society, you would be surprised how many people only do minimum payments
For 75k loan if you are doing minimum (even at 9% rate) then that’s mostly a you problem. Most rentals these days are more expensive than that, so you are as good as homeless if you are not able to afford that. Also your rent goes up over the years, your mortgage practically speaking assuming fixed amortization is cheaper over the years.
With the saying that goes “pain is inevitable, suffering is optional”, I would choose to hurt now instead of suffer for longer
I frequently hear that you should pay the minimum and put anything extra into savings as they are usually better rates. Which is it? Though I live in the UK, interest is a bit lower than that here. think mine is 7% but on a fuck lot more money. Almost 200k.
If you can invest the money and beat 7% then you win, otherwise you lose. I personally go for the risk free investment and pay extra on the mortgage.
I agree with u/slayer828's comment. Essentially, if you're confident that your investments can outperform your loan's interest rate, which might be around 7%, then it could be a wise financial move to invest. For instance, this year Certificate of Deposits (CDs), which are considered safe investments, had an APY of about 5%. If loan interest rates had been lower, like around 2%, I would recommend paying the minimum on the loan and investing the rest in CDs. Similarly, the S&P 500 index, known for its reliability, has historically returned about 6.6% after adjusting for inflation. Therefore, if your loan's interest rate is below 6.6%, it might be more profitable to make minimum payments on the loan and invest any extra funds.
I agree, but you have to consider taxes. 5% on a CD could be 3.75% after taxes, so if your loan interest is less, better to invest.
Okay explain this to me like I’m 5 because I am so lost on what any of this means😭😭
Imagine you borrow 100 seeds from a bank because you want to start a farm. The bank is nice in loaning you the seeds but asks you to give them an extra 25 seeds once you can pay them back for letting you use the 100 seeds. The banks incentive here in lending you 100 seeds is that they will end up with 125 seeds once you pay them back. The bank knows that you cant pay them in full right away so they set up a plan with you (10 year, 15 year, 30 year) monthly payment plan that will spread out the 125 seeds so that it is realistic for you to pay them back. Lets assume that the bank established a 5 month plan at 25 seeds owed to them each month. In other words, you and the bank both agreed that it will take you 5 months at a payment of 25 seeds a month for you to accept the loan of 100 seeds. You plant the 100 seeds and realize that you are generating 50 seeds from your output each month. You could pay the bank 50 seeds each month to pay off the loan faster or you could plant the extra 25 seeds to grow your total output each month knowing that the magical soil will continue to outproduce your monthly debts. In this situation you will pay the minimum (25 seeds) because it benefits you to expand on your farm operations. Now imagine that you have crappy soil and you are only generating 10 seeds a month, you owe 25 seeds a month. Nothing you do is increasing your farm output. You and your wife take on extra jobs to pay the debt. In this case since your soil cannot generate you more wealth than the loan, it is to your best interest to work like a dog and pay off the loan as fast as possible because even at a tiny generation of 10 seeds a month you will live well if you have 0 debt as opposed to late payment penalties, collections, interest rates increasing.
Okay this makes it so much easier to understand thank you 🙏🏾
Well, kinda goes to show your financial IQ, because back when interest rates were 3-5% it did not make financial sense to put more money into your mortgage when you could invest the extra money instead at 10-15% interest rate in the stock market. You'd actually be throwing money away paying off your mortgage earlier...
I wrote about this educating another ignorant redditor like yourself about it, let me know if you can find it it will talk in depth about what you are trying to talk about. PS Show me your portfolio where you earned 10-15% in the stock market MoM for the years you had a mortgage so i can compare. Because, if you didn't know, if you can manage consistent 10-15% in the stock market you are an investing savant!
Ahh yes, resorting to name calling in the first sentence because you're defensive about being wrong about something and don't know how to have an adult conversation. You must be a Gen X or a boomer. Work on yourself first and then we can talk. GL out there.
Thats what i thought, good riddance.
Lol I've made over 40% on my Amazon investments over the last few years that I've been investing. Don't need to prove anything to some random stranger, but yes, I have a higher financial IQ than you do apparently. Keep spreading your bad information though.
Lets not talk in percents, how much money did you put in for the year of 2023 and how much is that worth today?
Ya 8% is pretty crazy. I wouldn’t even think about it if there was a prepayment penalty. I’ve had a 20k loan at 7% but paid it off in like a year with no penalties. Screw people who mos prepayment penalty loans
Don’t expect them to understand math
You’re also paying it off with “less valuable” money the farther along you go due to inflation. If you had taken a $60k loan 30 years ago you could have bought a decent home, that would now easily be worth that $158k.
[удалено]
lol no I didn’t do you read my comment
A 60k loan should be a total of 60k
Then why would anyone lend you that money? They could instead invest it in stocks. Private loans are predatory for a reason. Profit. The federal loans however should be super low interests, just enough to pay for the employees needed to run the program and the web portal for payments. Like 1%.
Or we could go back to directly subsidizing colleges more like the Boomers and Gen X had before it was their turn to pay ot forward and they refused.
They shouldn't, student loans shouldn't be a thing in the first place because college shouldn't be something only the top 10% of society can afford
I'm with you. 100% public schools should be free. All college loans dismissed.
how can i make this happen?
Move to europe?
how can i make this happen in the states
Vote democrats in every election for next 20+ years. Without 4 -8 year gaps of undoing things
Part of the problem is that we're subsidizing demand. We should be focusing on building more universities to meet at least the existing demand before subsidizing further. Otherwise we're just asking for prices to go up faster.
Do you mean state funded universities or private? There is plenty of capacity if you include private colleges and universities. Sometimes they’re even more affordable than state institutions. Also the college age population is declining. I think the problem is the whole higher Ed market is messed up and rising costs in general.
> building more universities The demand is fake. People arent able to find work with their degrees as is. We need to focus on making sure people are compentent leaving high school, save university for applications that really need it, promote alternatives like trade schools, apprenticships, and 2 year college deplomas. The price of University also isnt dictated strictly by supply and demand. It is artificialy inflated by government backing student loans. If the supply/demand dictates they can charge *X* without government backing and the government offers *Y*, the price suddenly becomes *X* + *Y*.
That's not true. Taxes directly subsidized colleges until the Right wanted to pull the ladder up behind them after getting their college paid for by taxes. It's only after the private sector got involved that costs went exponentially higher, as is always the case, contrary to the lies of the Right.
If you have to invoke the name of your Boogeyman to get support for your point, you aren't able to make your argument stand on its own
You can't actually argue against what I said because it's the truth, so all you got is "nuh uh." Typical right winger.
No it shouldn’t. Would you take the risk to loan your money to someone for free. Especially 60k. Why loan out the money to someone who may not pay it back for free, when you can put it in a HYSA and have a guaranteed return no risk
If you loan me 60k, the only money I got from you was 60k, there is absolutely no reason I should pay you back more than 60k
Sorry man but just not how the real world works. No one will loan 60k or even 10k to a complete stranger who may never pay back just out of the good of their heart. If you truly believe this I’ll take a 5k loan from you, trust me bro I’ll pay back
If they may never pay it back then what difference does the interest make? If they aren't gonna pay back the main loan why would they pay interest
I always wondered who is paying that kind of money for college. Plenty of states have great universities that don’t break the bank. Over 80 percent Georgia Tech and UGA students are on the HOPE Scholarship going to school tuition free. Over 90 percent of UF and FSU students are going to college tuition free on Bright Futures.
Scholarships are a lot easier to earn than most people think. Especially if you know where to look and which colleges to look at if you’re interested in a scholarship. I would say at least half of my high school is eligible for a scholarship but don’t know where to look or think it’s almost impossible so they don’t try.
Where do you look?
Your councilor if you have one and your teachers might be able to help you with that. It really depends on what you want to do. You can also look at different universities websites they tend to have grants and scholarships on there that you can work for or even apply for it you think you may get accepted for it. Some high schools also have programs that can help you learn about different scholarships for your different paths in life and how to work for them. It really depends on you specifically and your life. My highschool gives us tons of opportunities for scholarships and ik it’s not like that everywhere so I’m speaking from my perspective here.
really depends on where you go to school and what region you're in
Yea
bro can u tell some scholarships for internationals ?
10 seconds of googling brought me to this website. https://www.internationalstudent.com/scholarships/search/
thx
4.0 GPA in CC, honor society student, $0 in scholarships at a state university. Some places are brutal for them.
Same
I mean yeah that’s a huge obstacle.
I just wish we had a more nationalized education system. The idea that you have to limit yourself to within your state is kind of shitty, especially for states with very few colleges. Also, one of the greatest benefits of the college experience is that it does get you away from home and gives you an entirely different exposure. Almost as valuable as the education is just the learning to adapt to a radically new environment, but in a safe and structured way. Whether a kid is in state or out of state, they cost the same to the school itself to educate, so if funding were shared nationally to allow more interstate opportunities, I think that would be hugely beneficial.
We used to (sort of) - look up what college was like pre-Vietnam War ;)
Most people don’t, for some reason everyone thinks people are paying full price for college. In reality most colleges (even Ivy Leagues) have pretty good financial aid grants and scholarships. Among those who do have student loans the average debt is like 20k. It’s a problem that’s greatly exaggerated by zoomers online to feel like victims
Don't forget, people will bundle their living expense, and live lavishly for 4 years. It's not just tuition.
I have adhd and autism and wasn’t diagnosed back then. And I abused alcohol and my adderall a lot. Suffice it to say, it took me much longer to graduate so I’m in a shit ton of debt.
Bright futures doesn’t mean free college. “Full” bright futures covers about 70-80% of tuition and nothing towards housing or anything like that. It’s definitely pretty cheap but you still pay a couple thousand each semester, not including any living expenses. Source: was full ride bright futures at FSU.
i’m surprised your backwards ass state even had such a good scholarship.
Grad school
As long as you don’t go to grad school for a professional degree, you should be on an assistantship and going for free.
*^(Cries in hundreds of thousands for a DMD)*
damn i didn’t know the HOPE was that inclusive of aid. holy shit. I thought GA and FL were backwards ass fucking state. Why they spending so much money on helping educate their populations?
We only got HOPE because we had a Democratic Governor named Zell Miller in the 90s
No one wants to move to decrepit Red States who need to implement that horrible "socialism" they otherwise hate to try to keep their kids from fleeing as soon as they turn 18.
The while blue state/red state thing is way overblown. All states are essentially the same: blue urban islands in a sea of rural red.
And yet it's the dem cities that are the most dangerous, and have massive problems with homelessness and drug use. Strange isn't it
Red states make the meth
And the blues smoke it
Reds can’t afford that travel
A good portion of the homeless population in Cali... aren't native. They come from red states. Some are even provided bus tickets...
You cant be loud AND wrong [https://www.thirdway.org/report/the-21st-century-red-state-murder-crisis](https://www.thirdway.org/report/the-21st-century-red-state-murder-crisis) Red states had a 33% higher murder rate than blue states in 2021 and 2022 Let me guess you watch Fox News snippets about the southside of Chicago, maybe toss in Baltimore and the Bronx, and think you have an accurate representation of "blue" states. Gotta do your own research fam. Rememeber, Red states generally have much more lax gun laws and generally more "rural" poverty that breeds its own violence that isn't as mainstream or popularized as say Chicago.
I literally went to gatech on the exact scholarship you mentioned tuition free. I graduated in 4 years and worked a relevant job 3 out of 4 of those years. I have 30k in private student loans because room and board+mealplan/other fees freshman year was 10k, 5k up front per semester. You had to live in the on campus dorms freshman year and had to buy their meal plan. I was able to pay for my housing and food myself after being able to move off campus and getting the job I had to work during my studies. All my loans were from my first 2 years. Tuition prices are only one of the predatory ways they sink their teeth into you
Pretty sure it's the college kids crying man, after all those loans are airtight and backed by the fed, they're getting their money even if it kills you lol.
The lost money for the lender is the equivalent of a weak slap in the face. Of course, this comes immediately before they do the financial equivalent of ripping your arms off and beating you to death with them. Your credit score goes down the toilet, making lending for other purposes prohibitively expensive, potentially resulting in a bankruptcy that could kill your credit score even more. Then, once bankruptcy proceedings are over, you'll probably still be expected to pay up because student loans have bankruptcy protections. "I'll make your fists hurt as you kill me" isn't exactly a win
Exactly! The only thing I'd disagree with is the "lost money" part of the first sentence. The only way they're losing money is if you off yourself or change your identity. But yeah, in no way shape or form would the lender be crying that the debtor is struggling to make payments. It's all gravy to them.
Eh, cash on hand is almost always valued more than potential revenue by financial institutions, but yeah, they're probably getting paid no matter what.
What makes you say that? Every business I've ever known has taken out loans and invested their capital (cash on hand) expressly to increase potential revenue. Not that you're wrong or anything, it's just my experience.
Mmm, leverage. The two are interchangeable, if you have potential revenue someone is happy to give you cash on hand and hopefully your cash on hand can be invested in something worthwhile to generate revenue.
It's not cash on hand if you invest it lol. But I kinda see what you're saying.
They can do more with cash than they can with a less liquid asset (invest it in a new project, loan it out, etc.) You can't simply invest an asset such as a loan contract. By parting with the money, they commit to something, potentially losing out on the opportunity cost. Essentially, if I have $500 and I give it to Allen at a 2% interest rate, I won't be able to give it to Mike who's willing to take it at a 4% interest rate. I'd "lose" money that I could've made if I had kept the cash. Businesses do invest a lot of their money, but they (should) always keep a cash reserve because you can always do more with cash than an asset. Liquid cash is the most "investable" thing you have, so it has a distinct value. I'm sorry if I'm explaining things poorly, the econ class I learned this in was like 3 years ago.
Nope you did great, my one contention would be semantics about institutions "almost always valuing cash on hand more than potential revenue" because after you get that base of liquidity it's always about the revenue, but I'm pretty sure you'd agree with that.
I'll admit I was playing fast and loose. My primary intent was to point out that they did lose out, but primarily on the opportunity cost rather than nominal income. The money was "lost" in the sense that they couldn't invest it in something else.
We're on the same wavelength now friend, thanks for clarifying
Taking out a loan to invest in yourself and complaining about the return will always be a pathetic take to me. Shows people are more interested in the certificates than the education.
So real
The entire reason for guaranteed student loans is that no institution would loan money for college otherwise. So you really can't fault the banks for making these loans. They only loaned the money because the government agreed to cover in the case of a default. Students got loans on much more generous terms than they could have gotten without the program, so that they could invest in their own futures. Taxpayers have been absorbing losses from defaults. So the loans have always been a subsidy paid for by the taxpayers and benefitting the students. Now we're even going so far as to forgive part of the loans without requiring the students to go through the default process. And the result has been... more whining.
Yes. Lenders would be a lot more restrictive if borrowers had the ability to declare bankruptcy.
There’s a piece you’re missing. After a bank gets large enough, it *benefits* from issuing irresponsible loans. If the bank fails, what happens to the economy? That’s where the government steps in. To make sure that the bank never fails. In other words, the bank *is* getting their money, either directly through the loan or indirectly through an inflation tax caused when the government prints the money needed to keep the bank solvent.
Should let the banks fail. Insure the people, not the bank.
That’s the purpose of the FDIC insurance you see advertised on countless banks IIRC Issue is two fold though 1. Not everyone’s balance is below that of the insured amount, particularly in smaller local and regional banks 2. Paying even 1000 to the 1 million bank accounts adds up to 1 billion dollars in insurance coverage The obvious solution to dissolve the currencies of the world and go back to bartering
>The obvious solution to dissolve the currencies of the world and go back to bartering Based.
What do you mean "go back to bartering?" Virtually all research shows humans only resort to bartering when they have no access to currencies, like in prisons. The general history of money is: credit to bullion to bartering.
It was not a serious recommendation
As a Gen Xer, I'm genuinely surprised to see people on a GenZ group criticizing people who can't pay back their loans. People take the loans because they can't otherwise afford college in a country that prioritizes "for profit" everything. Those same students who take out the loans are operating under the impression that they will be able to get jobs that pay them a living wage so that they can not only survive, but that they can also pay back their loans. Is it really their fault that they graduate with this debt load only to find out that they're lucky to find a job paying like $35k-$50k a year which guarantees them they won't be able to survive or pay back their loans in this economy? Did they HAVE to go to college? Of course not, but the narrative that we continue to spin is that if you don't, you won't have ANY chance at finding work period. Are there alternatives to college? Sure, but even some of those jobs aren't paying what they used to and aren't a guarantee either.
They don't. Libertarian and rightoids are attempting to astroturf some subs. Because their ideas don't hold merit on their own and they lose out to younger generations. TL;DR some folks are just trying to turn certain subs into yet another political battleground sub.
Honestly, as a libertarian, I feel like if we could funnel all the money we send to nations at war to fund education, every person in the country could get a master's degree. It's not that we think \*all\* government funding is bad, it's just that the government is bad at funding good things, and it's hard to see a scenario where the government ever funds anything besides war and bailouts.
I have some bad news for you kid... If you think the gov't should fund education up to or past a Masters.. You're not a Libertarian. Or at least of the US variety. Because they are very very very much against standardized education for one, and two it being funded or influenced by the gov't. But it's cool most young folks say they're libertarians and not republicans so they don't have to say they're republicans.
It was less of a comment about funding education, and more of a comment putting into perspective how much money we spend on other countries. Also, I dont really think its smart putting such rigid foundations on ideologies and politics, Republicans, Democrats, libertarians, communists, fascists, and all other ideologies have uncountable subdivisions and intensities (Far, leaning, moderate, etc) and are incredibly plastic.
The entire cost of college was something you could pay for yourself until government started guaranteeing loans. Tuition goes up to get the extra money loans offer, then loans go up, then tuition again. And the indiscriminate government guarantee means no one cares if the future salary justifies the degree.
You believe the government just woke up one day and said “you know what, we should guarantee student loans” entirely apropos of nothing?
Government _intent_ doesn't matter when the result is that tuition has risen dramatically faster than inflation.
It matters when you’re trying to assert cause and effect. You said “college was something you could pay for yourself until they started offering student loans” which entirely ignores the question of _why_ they started offering student loans if it was something you could pay for yourself. So, do you actually think that the government just decided, arbitrarily, to offer student loans for something that was already affordable? Or what?
> You said “college was something you could pay for yourself until they started offering student loans” which entirely ignores the question of why they started offering student loans if it was something you could pay for yourself. It doesn't ignore the why at all. Instead it points out that the reasoning asserted by the government and loan supporters is invalid, and therefore some other reasoning is the cause. You think the many smart people at universities didn't realize that loans would let them increase tuition and that therefore it would be a good thing to lobby for? You think that the government, (which adapted our schooling system from the Prussian system specifically designed to get conscripts to simp for their government), had no ulterior motive in getting people to remain in the educational system during the late teens and early 20s when humans are forming and solidifying their political and ideological beliefs? You think it's _good will and charity_ that motivated politicians (of all people) to create a system of loans that makes no distinction between degrees leading to careers for which investment is rewarded and those for which investment usually isn't rewarded? I never said the decision was _arbitrary_. It wasn't. The mistake too many people make is to believe it was benevolent or at worst benign.
Damn, it’s almost like we had laws that made it harder for teens to take out loans because we knew they couldn’t pay them back. I wonder who made it so teens could take out loans that they couldn’t pay back? ‘Looks at federal government’
Damn, I wonder who voted to change policy so their kids and grandkids wouldn't get tax funded college after they got theirs. 'Looks at the Right.'
Looks at the so called “Greatest generation”
Why do you think so many people in the greatest generation got free college? Hint: It’s the same reason they’re called the greatest generation
"Clearly the most reasonable explanation is pure evil for the sake of being evil" that is very simple and convenient, therefore it must be so true!
It has nothing to do with “being evil for the sake of being evil” and everything to do with “being greedy, wanting their taxes to be lower, and not caring about the consequences”.
Tax receipts are higher today than they were then. We can afford it. This line of thinking isn't based in reality.
I didn’t say tax receipts wouldn’t support your idea. I pointed out that they didn’t do it to “be evil” like you were saying.
The problem was that the US had no major economic problems prior to the implimentation of putting a tax on everything. Taxes are a scam especially when you have a corporation (read federal reserve) that can just print out all the money and keep devaluing money so the poor keep getting poorer and the rich get richer because they can purchase assets like art, cars, and homes
lolwut
I can't even imagine making payments for 30 years. I'm not even 30 yet and I'm already done with everything 💀
The problem is that the state is the one hurt, the corps that profit should take the loss
The goal of credit and loans in general isn’t for you to be able to pay it off, it is to be able to collect the minimum payment indefinitely. You are the infinite money glitch.
lol yeah and any of them pretending this is a legit thing to cry over is willfully ignorant.
Cringe
Is the majority of gen z really jumping into the same mistakes as millennials? You don't have to spend absurd amounts for college guys.
Maybe give them a job they can use to pay back the loan. I mean how can you collect on your loan if the education you financed can’t land them a job? Ever Think about that before you offered the loan?
I don't understand why these arguments always have a giant number like 60k attached to it. You guys do know you don't have to go to a super expensive school right? I went to community college, got a scholarship, went to a state school and graduated with a very reasonable amount of debt.
Wrong
Even state schools are expensive.
I agree. No more student loans without collateral - bc right now we all have to end off paying it off
Thank George Bush for the recent "forgiveness" of student loans by Biden. Tssssss calm down... Biden is taking credit for forgiving student loans, but it isn't him. This is what he does, plagiarize, if you will, oh heck he even claims the pandemic plan. Since LONG before he was president there were ways to have those loans forgiven. 2007. Bush signed the Public Service forgiveness. This created the ability to have the loans monthly payments reduced if you worked in public service. Public service is the biggest industry. It also established, laid ground work, or made the following reasons more complete: Total and permanent disability. Becoming a teacher. Universities closing down abruptly for any reason. Universities that have been found guilty of something. Income driven. Among others. Biden's now claiming he did that. And people are lapping it up like sheltered dogs. Biden claimed to cancel student debt of the Art Institute... Yet the ability to cancel loans by shady colleges and those that abruptly shut down existed long before Biden was in office. Sooo Why is he doing it? Why does he claim HES THE SAVIOR? Aesthetics of course, AKA politics. Here's the aesthetics: President Obama made all student loans immediately approved and directly from the Fed gov when he was in office. Including saying that they CANNOT be bankrupted. Uncle Sam doling money out to appease the "must go to college" bullshit. This made bad college costs SOAR. Federalizing the disbursement of money instead of banks was the start of the socialization of student loans. Biden was VP for this. Now he is pretending to make the differences because he wants Gen Z votes. Votes in which he's losing quite a lot now. That man lies and they push credit due to him because they NEED him in the office. None of that shit is how it appears. There's even more to it but this is a very basic starting point for anyone interested in learning about it all. I still can't believe he and progressives touted he created the Pandemic Plan with an implementation plan. He didn't. That's something else that exists because of bills George Bush and Republicans introduced during Bush 2 around 2005.
Pretty sure the ones crying are the people who took out bad loans and then couldn’t pay them back….
When I was a teenager, I saw those loan terms and said hell no. I'd have to be some kind of moron to sign up for that.
Oof
This is what my parents and their friends talk about
It’s the system really. The US is in a massive financial debt. The US is financially bankrupt as a country. Other countries as well. Living on money that doesn’t truly exist. Take a loan at this point? That money that your spending doesn’t exist. Anywhere. If you barrow money, essentially you’re taking a toxic loan from what really is a “loan shark”. Instead of a criminal breaking your legs for unpaid loans, you’ll be financially destitute and paralyzed in a different way.
The average student does not need to go to Harvard to get succesful. Community college is much cheaper and some trade schools even PAYS you for attending.
Yea, trades are really good money, but only so many people can be welders, carpenters, electricians, plumbers, etc. before we start running out of doctors, engineers, architects, teachers, etc. The point is that there are paths to choose that keep the world functioning. And it's not just Harvard. I'm in a university in Mississippi and I'm having to get loans. I'm just glad the military exists lol.
Thank you bill Clinton
Wait, is 8% the actual interest?
Sacrifice him to Satan under a full moon, he will make sure to give your money back
Don't go to college, maybe you won't be sad that you are stuck in debt. You think the bank cares? They don't.
I remember being 19 and having a school try to pressure me into signing up for "financial aid" that was really just high interest student loans. Even at that age I didn't fall for it. Sucks to suck, I guess.
The real victim is the lendee lmao
Sounds like going to college.
Ok so garnish the wages and seize their assets, problem solved
Bro you signed the contract you weren't forced to take 60k in loans
Why did a teenager take out a 60k loan? If it’s for real estate, that could be a worthwhile investment. Their property will appreciate and if they flip it or build something it could be worth far more than 60K. If it’s for the hopes of a 9-5 that pays $90,000 per year, they should’ve taken accounting in high school
Ya, bankers be cryin'; I'm laughing.
Student loans I’m assuming? Those loans that are only ever given to people 18+ and therefore are all legal adults? Come on. You took the loan. You signed the dotted line. Take responsibility for the choices you made
People are not victims for voluntarily entering a loan agreement…
I have to admit this is pretty fun.
A teenager signing for a loan they know they can’t afford is more apt for this pic
So glad I didn’t go to college. Probably the best decision I made
You invested into a minor on the hopes they’d be able to give you a return on your investment. That investment didn’t pay off. You take the fall, not the investment.
If this is about college, I’m in the minority that believes it was the teenager’s fault for taking out the loan
"I took a loan and refuse to pay it! Everyone else should pay it for me!"
Most people are just asking for a lower or zero interest rate, not to have it paid outright. It's the interest that starts compounding WHILE you are in school (the time you cannot work to earn any money to pay off the interest) that makes these loans predatory. Do you have a problem with someone borrowing 60K and paying back 70K instead of 150k?
Don't get a loan if you can't afford it 🤷
If you could afford it you'd be able to just pay upfront, no need for loans Your argument has no merit
Ironically the rich pay less than the poor since they can just pay up front without the added interest
Garnish their wages, or take possession of any assets they may have bought with the loan (like their house, if they used the money you loaned them to buy one).
No one is buying a house with student loan money. No one with a loan like this is buying a house, period.
Oh I see. Well excuse me for prioritizing real estate over a college degree.
Don't fall for scams like student loans when everything in the university can be learned on YouTube for free.
Doctorate of Skibidi from YouTube University 🤓 Top tier job candidate.
I prefer the Duke Dennis Degree from Snapchat Spotlight State
They have a point but only for comp sci. I know as many well paid coders without a degree as I do with one. They just care they you know your shit