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#21
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View Postcarribeanpirate, on 03 August 2015 - 07:54 PM, said:

Geek - student debt is a root cause of many problems facing new grads. However, you knew those loans needed to be paid back with interest at some point. Not sure why after taking the money and agreeing to interest terms you would expect a break.

And many in my age group (late 40s) feel that many millennials have a sense of entitlement, that the rules don't apply to,them or exceptions should be made. Not saying that that describes you, but this post does not help that perception.

The older generations ALWAYS look down upon the younger generations no matter what.

I love how the baby boomers call themselves the Greatest Generation. If that's not hubris and entitlement I don't know what is! That's the generation that's spent all of the money.
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#22
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View PostNittanyLion, on 03 August 2015 - 08:25 PM, said:



The older generations ALWAYS look down upon the younger generations no matter what.

I love how the baby boomers call themselves the Greatest Generation. If that's not hubris and entitlement I don't know what is! That's the generation that's spent all of the money.

Absolutely!
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#23
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View PostNittanyLion, on 03 August 2015 - 08:25 PM, said:

The older generations ALWAYS look down upon the younger generations no matter what.

I love how the baby boomers call themselves the Greatest Generation. If that's not hubris and entitlement I don't know what is! That's the generation that's spent all of the money.

It reminds me of old people saying when they were young the music/movies/tv shows were much better than today's garbage. With an overwhelming amount of content today there will be plenty of garbage, but there is also plenty of great music/movies/tv shows today - case in point Mad Men, Friday Night Lights, Breaking Bad,White Collar etc

or when I was young we had to walk in 2 feet of snow today children have it easy with school closing for an inch of snow.
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#24
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View Postsatellite_eyes, on 03 August 2015 - 08:04 PM, said:

Maybe more time should be spent in HS teaching finance and the ramifications of having debt. Using college as a real life example might scare people into either staying in state or going to a community college. I went to college for 5 years and half of that was community college. Did not affect me negatively in terms of getting a job. Then I got a job with a company who paid 95% of my grad school.

And I think that's why community college is so attractive. Get the BS classes out of the way for 2 years at 60% of the cost of a 4 year school. When my son was still on the fence about a major, community college was where he was headed until he figured it out.

#25
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View PostNittanyLion, on 03 August 2015 - 08:25 PM, said:

The older generations ALWAYS look down upon the younger generations no matter what.

I love how the baby boomers call themselves the Greatest Generation. If that's not hubris and entitlement I don't know what is! That's the generation that's spent all of the money.

No, you are missing the point. The point was buyer beware. You all signed the note. You knew interest rate increases were a potential. If you didn't, I guarantee its in the document somewhere. Interest rate increases are not a student loan issue, its also what caused the housing crisis in the 08's-09's.

I am not saying its right. I also can say that many of these debts will never be collected as people will not be able to afford them or will simply default, so, the government needs to address and figure out how to determine the amount of loans to back. But like everything they do, they will pass it off to the next administration to deal with. IN the meantime, you guys are left to figure it out and either pay it off or not.

#26
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View Postcarribeanpirate, on 04 August 2015 - 05:57 AM, said:



No, you are missing the point. The point was buyer beware. You all signed the note. You knew interest rate increases were a potential. If you didn't, I guarantee its in the document somewhere. Interest rate increases are not a student loan issue, its also what caused the housing crisis in the 08's-09's.

I am not saying its right. I also can say that many of these debts will never be collected as people will not be able to afford them or will simply default, so, the government needs to address and figure out how to determine the amount of loans to back. But like everything they do, they will pass it off to the next administration to deal with. IN the meantime, you guys are left to figure it out and either pay it off or not.

What actually will happen if you default on student loans? I've heard some people are not paying them back at all because they simply cannot afford the ridiculous price per month. Not every student loan has the option to take your annual salary into account.

I also think it's wrong to allow a 17 year old fresh out of HS to take out these loans. If there is anything I've learned in the last 10 or so years is that the student loan topic is a joke and something needs to be done to alleviate the financial burden on students and their families.
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#27
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View Postweathergeek87, on 04 August 2015 - 07:13 AM, said:

What actually will happen if you default on student loans? I've heard some people are not paying them back at all because they simply cannot afford the ridiculous price per month. Not every student loan has the option to take your annual salary into account.

I also think it's wrong to allow a 17 year old fresh out of HS to take out these loans. If there is anything I've learned in the last 10 or so years is that the student loan topic is a joke and something needs to be done to alleviate the financial burden on students and their families.

Frankly, I dont know the ramifications of default. There have been quite a few articles online about this, though. As to your point on late teens taking these loans, its true, but this is where parents need to be involved. I am sure there are predatory loans, just like the housing market. Its part of a larger point that we feel everyone needs to go to college. I wont rehash that, but the thinking starts there. Remember, in Rattner's article cost of living increased 67% over a time period I cannot remember. At the same time college costs rose 254%. That's a problem, nearly 4x

#28
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View Postcarribeanpirate, on 04 August 2015 - 05:57 AM, said:

No, you are missing the point. The point was buyer beware. You all signed the note. You knew interest rate increases were a potential. If you didn't, I guarantee its in the document somewhere. Interest rate increases are not a student loan issue, its also what caused the housing crisis in the 08's-09's.

I am not saying its right. I also can say that many of these debts will never be collected as people will not be able to afford them or will simply default, so, the government needs to address and figure out how to determine the amount of loans to back. But like everything they do, they will pass it off to the next administration to deal with. IN the meantime, you guys are left to figure it out and either pay it off or not.

I disagree. We all grudgingly signed the note because college costs have increased so much (and grants are scanty enough at a lot of schools) that the only way to "afford" college (air quotes here, because it isn't really affordable for many) is through loans we have to pay back later. It's either paying $100,000 in tuition during your four years or paying it in debt after college. You're damned if you do it and damned if you don't.
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#29
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For the record, I wonder how long it'll be before the higher ed bubble bursts (just like it did with housing prices).
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#30
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View Postsatellite_eyes, on 03 August 2015 - 08:04 PM, said:

Maybe more time should be spent in HS teaching finance and the ramifications of having debt. Using college as a real life example might scare people into either staying in state or going to a community college. I went to college for 5 years and half of that was community college. Did not affect me negatively in terms of getting a job. Then I got a job with a company who paid 95% of my grad school.

THIS!!!! In high school I never really learned about having debt/managing it or any sort of financial planning. I remember during high school every one always said college is the most expensive purchase in your life right next to buying a car and owning a house, but the money spent on college today is an investment for your future.
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#31
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View Postthundersleet, on 04 August 2015 - 09:07 AM, said:



I disagree. We all grudgingly signed the note because college costs have increased so much (and grants are scanty enough at a lot of schools) that the only way to "afford" college (air quotes here, because it isn't really affordable for many) is through loans we have to pay back later. It's either paying $100,000 in tuition during your four years or paying it in debt after college. You're damned if you do it and damned if you don't.

Beautifully written!
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#32
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View Postthundersleet, on 04 August 2015 - 09:08 AM, said:

For the record, I wonder how long it'll be before the higher ed bubble bursts (just like it did with housing prices).

Some think the bubble is already starting to burst.
The question is, when it does burst, what will happen to students who owe $100,000 - will it be forgiven or will new reform take over to assist students with the burden.
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#33
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View Postweathergeek87, on 04 August 2015 - 12:10 PM, said:

Some think the bubble is already starting to burst.
The question is, when it does burst, what will happen to students who owe $100,000 - will it be forgiven or will new reform take over to assist students with the burden.

And another question is whether student loans will be a bubble that bursts all by itself (i.e. taking on a form of loan companies going belly up), or if it'll be part of a larger epidemic resulting from stagnant middle class wages (wages which have actually decreased, if you take inflation into account) for the last 25+ years. I really don't know how this bubble would burst, or when it'll burst, but I think that the bubble will burst eventually, I think.
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#34
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View Postweathergeek87, on 04 August 2015 - 12:09 PM, said:

Beautifully written!

Thanks...though I'm not sure how I feel about using the first person plural to talk about an entire generation of people. Especially since our generation is not homogeneous (and no generation is homogeneous...with all due apologies to the "Greatest Generation"). :hmm:
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#35
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But what market will burst? The overall student loan debt amount is much smaller than the amount associated with what happened with the MBS securities. Plus there is nothing to hedge since student loans are generally backed by the gov't and declaring bankrupcy will not wipe away your student loan debt. So if you all of the sudden have a massive amount of loans not being paid off how does this affect the colleges? They already have their money. Maybe once it becomes a bigger story it will scare people from taking these massive loans. But then again, as you guys have said, what other options do you have? Is it better to be uneducated with no debt, or educated with 100k in student loan debt?
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#36
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View Postsatellite_eyes, on 04 August 2015 - 01:15 PM, said:

But what market will burst? The overall student loan debt amount is much smaller than the amount associated with what happened with the MBS securities. Plus there is nothing to hedge since student loans are generally backed by the gov't and declaring bankrupcy will not wipe away your student loan debt. So if you all of the sudden have a massive amount of loans not being paid off how does this affect the colleges? They already have their money. Maybe once it becomes a bigger story it will scare people from taking these massive loans. But then again, as you guys have said, what other options do you have? Is it better to be uneducated with no debt, or educated with 100k in student loan debt?

I don't know what bubble will burst. I wish that I did know. I think that some bubble will burst though related to student loan debt because the current situation is unsustainable. As for hedging, there are actually a lot of private student loans related to college, so I'm sure that there is hedging. So maybe privately-owned college loans will be a bubble that bursts? Or maybe colleges that see enrollment decreases? Or maybe it'll be something less pronounced, such as the economy being staggered long-term due to cautious consumers who are saddled with student loan debt? Or some combination of the three? Or maybe I'm out in left field altogether?
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#37
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View Postthundersleet, on 04 August 2015 - 02:36 PM, said:

I don't know what bubble will burst. I wish that I did know. I think that some bubble will burst though related to student loan debt because the current situation is unsustainable. As for hedging, there are actually a lot of private student loans related to college, so I'm sure that there is hedging. So maybe privately-owned college loans will be a bubble that bursts? Or maybe colleges that see enrollment decreases? Or maybe it'll be something less pronounced, such as the economy being staggered long-term due to cautious consumers who are saddled with student loan debt? Or some combination of the three? Or maybe I'm out in left field altogether?

I have said for sometime that the cost of college in certain professions is beginning to reach the point where its no longer worth it.....you will never recoup the money spent/paid back with interest to make it worthwhile. Take doctors......undergrad and post grad, where most of the post grad money is borrowed. School for 8 years, and really start making money when you are 30ish. So at 30, you start work and earning money as a family physician. you make a decent living in NJ and make $100k per year, with a top end of $150k. But you face student loans of $200k or $800 a month for the next 20 years. So now you are 50 and are out from under student loan debt. Why become a doctor if you are not specializing? And how many specialists do we need? I do not know the answer to the problem, but I can tell you a change is going to happen within the next 10 years. The current state is not sustainable.

#38
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If the bubble bursts and loans are forgiven (which I doubt) then I guess future generations would pick up the tab.

I keep seeing the term "greatest generation" being used. That term was given to those born during the depression era and served and lived through WWII.

College costs are a disgrace and charging, as Weathergeek mentioned, 8% interest is also a disgrace in this time of low interest rates. I thought I posted this before but maybe I didn't. Another problem is the bachelors degree is becoming common place and a masters is needed to stand out. So now your talking more money.
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#39
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View Postcarribeanpirate, on 04 August 2015 - 05:57 AM, said:

No, you are missing the point. The point was buyer beware. You all signed the note. You knew interest rate increases were a potential. If you didn't, I guarantee its in the document somewhere. Interest rate increases are not a student loan issue, its also what caused the housing crisis in the 08's-09's.

I am not saying its right. I also can say that many of these debts will never be collected as people will not be able to afford them or will simply default, so, the government needs to address and figure out how to determine the amount of loans to back. But like everything they do, they will pass it off to the next administration to deal with. IN the meantime, you guys are left to figure it out and either pay it off or not.

Yeah I don't disagree, I was just sidetracked haha.
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#40
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View Postweatherbowl, on 04 August 2015 - 04:39 PM, said:

If the bubble bursts and loans are forgiven (which I doubt) then I guess future generations would pick up the tab.

I keep seeing the term "greatest generation" being used. That term was given to those born during the depression era and served and lived through WWII.

College costs are a disgrace and charging, as Weathergeek mentioned, 8% interest is also a disgrace in this time of low interest rates. I thought I posted this before but maybe I didn't. Another problem is the bachelors degree is becoming common place and a masters is needed to stand out. So now your talking more money.

My brother who is paying about 8% interest because he consolidated his loans way before interest rates dropped and once you consolidated you cannot re-finance them to get a lower rate....Elizabeth Warren has been talking about this a lot. It's disgusting. Obama hasn't done anything about this. Only hope is Sanders and Warren.
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