This student loan debt crisis thingy is starting to scare me

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Re: This student loan debt crisis thingy is starting to scar

Postby mac5155 on Wed Nov 20, 2013 2:54 pm

Letang Is The Truth wrote:
mac5155 wrote:I kind of felt bad when I made my little sister cry over changing her major from Speech and Communication disorders to business, but I think she's starting to realize why.


what is the attraction to speech language path? aside from accounting and finance, i know countless people in SLP. i dont get it


It was a 5 year masters program and the job outlook seems a lot better than a business degree.
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Re: This student loan debt crisis thingy is starting to scar

Postby columbia on Wed Nov 20, 2013 2:54 pm

Letang Is The Truth wrote:
Troy Loney wrote:
Letang Is The Truth wrote:so then everyone goes to software engineering, there arent enough positions to fill, said software engineers work in said mall kiosks while the history professor demand decreases and their salaries jump to 3x baseline as they cant fill the positions all the old crumb bums were in before they died off



Are you saying that economic realities should be seperated from these decisions? Obviously that was a gross oversimplification, you understand that right, or would you like me to be more thorough?


yes i am. a 17 year old kid should not make a decision based on their life long profession based on potential loan monies available


It seems like the answer is somewhere in the middle.

I certainly want to live in a world where people are studying philosophy in college, but they need to prepare themselves through other coursework to have some marketable set of skills and/or demonstrate high level critical thinking for real life problems. That can certainly depend on the "quality" of the college they attend, but not in all cases.
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Re: This student loan debt crisis thingy is starting to scar

Postby tifosi77 on Wed Nov 20, 2013 2:56 pm

Factorial wrote:
tifosi77 wrote:
pittsoccer33 wrote:I honestly think she should consider declaring bankruptcy. Contrary to popular belief you can do it in certain cases.

The only exception I'm aware of for this is 'undue hardship', which basically requires that you prove to the bankruptcy court that you're more or less destitute, and will likely remain that way for the foreseeable future. You also have to have made a good faith effort at repayment.

Under Ch 7 bankruptcy, you basically get a 7-year deferment on the debt. Under Ch 13, you still pay the debt, but at a reduced monthly amount. (I don't think the overall debt is reduced, just the amount you pay monthly)


Does that go for private student loans as well (which the op's gf has)? Or just fed backed ones?

That's a good point, I was just talking about gov't backed loans. Not sure about private loans. But private loans only make up about a quarter of the student lending.
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Re: This student loan debt crisis thingy is starting to scar

Postby largegarlic on Wed Nov 20, 2013 2:56 pm

As someone who has an engineering degree and a couple humanities degrees, I can kind of see both sides of the issue of what people should major in. I wanted to point out that it isn't really a problem that too many people are majoring in the traditional humanities. It's only about 7% as of 2010, down from 14% in the 1960s (http://www.artsbeat.blogs.nytimes.com/2013/06/27/quants-ask-what-crisis-in-the-humanities/?_r=0).

So, the core of the problem isn't that we have a ton of english, history, and philosophy majors who take out lots of loans and then can't get jobs. There are certainly some, but you don't really do much to solve the problem by eliminating these majors.
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Re: This student loan debt crisis thingy is starting to scar

Postby Troy Loney on Wed Nov 20, 2013 2:59 pm

All areas of study need to be avaiable. But there should be some criteria for obtaining finance for some people. If a kid is really bright and motivated through early education and gets into a high level institution (ivy league per say), than this kid has qualities that will allow him to suceed and the lenders should recognize that and provide education financing to study whatever the kid wants.

There have to be some basic lending fundamentals for education loans, right now it's just unlimited blank checks. there are no repurcussions for bad loans because the government buys all the debt anyway...isn't this exactly the same thing that happened with the housing market? Bogus lending practices lead to inflated prices and thus a market crash.
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Re: This student loan debt crisis thingy is starting to scar

Postby Letang Is The Truth on Wed Nov 20, 2013 3:04 pm

re: the housing market - i agree completely. i just disagree that the loan amount should be based on declared major at time when loan is sought .
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Re: This student loan debt crisis thingy is starting to scar

Postby columbia on Wed Nov 20, 2013 3:05 pm

Letang Is The Truth wrote:re: the housing market - i agree completely. i just disagree that the loan amount should be based on declared major at time when loan is sought .


I'm glad that it wasn't.
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Re: This student loan debt crisis thingy is starting to scar

Postby thehockeyguru on Wed Nov 20, 2013 3:07 pm

Just saw this thread, but I believe the Federal Loans are eligible to be capped at 10%-15% of disposable income. All you have to do is apply by showing your last tax return.
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Re: This student loan debt crisis thingy is starting to scar

Postby mac5155 on Wed Nov 20, 2013 3:09 pm

thehockeyguru wrote:Just saw this thread, but I believe the Federal Loans are eligible to be capped at 10%-15% of disposable income. All you have to do is apply by showing your last tax return.


This is correct, but you also have to pay it for like 20 years.. and if you get a raise, you end up paying a lot more in interest as you become less and less qualified (due to higher income)
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Re: This student loan debt crisis thingy is starting to scar

Postby newarenanow on Wed Nov 20, 2013 3:12 pm

I just saw this thread. Holy crap that is a large payment. What did she go to school for (is it earlier in the thread?).

I was fortunate enough that my parents were able to pay for my education, so I didn't have any debt, and my wife, we only have a handful of payments, but her loans were only like $200/month.

I'm already saving for my kids education via a 529 plan so that if they decide to go to school, it will at least help some of the burden. I'd like to do for my kids what my parents did for me, but with the skyrocketing cost of education, I don't know if I will be able to pay the full amount.

We already have over $10K saved for the 3 year old and around $4K for the 1 year old. Hopefully if we can keep up with that pace, we can pay for their education and not have to worry about this.

That is nuts though.
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Re: This student loan debt crisis thingy is starting to scar

Postby thehockeyguru on Wed Nov 20, 2013 3:12 pm

mac5155 wrote:
thehockeyguru wrote:Just saw this thread, but I believe the Federal Loans are eligible to be capped at 10%-15% of disposable income. All you have to do is apply by showing your last tax return.


This is correct, but you also have to pay it for like 20 years.. and if you get a raise, you end up paying a lot more in interest as you become less and less qualified (due to higher income)


The max I believe you can pay is 30 years at which point the loans are forgiven. Of course you pay more in interest, but the payments are always manageable.
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Re: This student loan debt crisis thingy is starting to scar

Postby pittsoccer33 on Wed Nov 20, 2013 3:18 pm

newarenanow wrote:I just saw this thread. Holy crap that is a large payment. What did she go to school for (is it earlier in the thread?).


Her original plan was neurology but her 3.3ish GPA isn't getting her into medical schools. Shes a clinical psych researcher and enjoys it, leaving the door open for educational advancement there.

newarenanow wrote:II'd like to do for my kids what my parents did for me, but with the skyrocketing cost of education, I don't know if I will be able to pay the full amount. .


The second part is the other shoe dropping - parents who blew through their retirement saving over the last 10 years paying for college. Now they don't have enough to retire. Them not retiring is preventing others from advancing into their roles. Which is keeping entry level jobs from opening.
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Re: This student loan debt crisis thingy is starting to scar

Postby eddysnake on Wed Nov 20, 2013 3:24 pm

I work at a University and my kids get free tuition if they choose that route. With how ridiculous it is, I'm a little torn with that decision. I would never want to force my kids to goto college somewhere, but free tuition is free tuition...
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Re: This student loan debt crisis thingy is starting to scar

Postby Kraftster on Wed Nov 20, 2013 3:29 pm

TheHammer24 wrote:Let’s assume the average person makes $60,000 - $70,000 a year, which I think is a modest estimate.


Really? That seems wildly optimistic.
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Re: This student loan debt crisis thingy is starting to scar

Postby Letang Is The Truth on Wed Nov 20, 2013 3:29 pm

Yea I would force them. Also sag something like you'll give them ten grand if they do that they can have when they graduate
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Re: This student loan debt crisis thingy is starting to scar

Postby skullman80 on Wed Nov 20, 2013 3:31 pm

Kraftster wrote:
TheHammer24 wrote:Let’s assume the average person makes $60,000 - $70,000 a year, which I think is a modest estimate.


Really? That seems wildly optimistic.


I would agree that's very optimistic.
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Re: This student loan debt crisis thingy is starting to scar

Postby shafnutz05 on Wed Nov 20, 2013 3:31 pm

Kraftster wrote:
TheHammer24 wrote:Let’s assume the average person makes $60,000 - $70,000 a year, which I think is a modest estimate.


Really? That seems wildly optimistic.
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Re: This student loan debt crisis thingy is starting to scar

Postby Troy Loney on Wed Nov 20, 2013 3:33 pm

Starting salary? yeah, not even close to that. 10-15 years experience in the labor force. then it's reasonable.
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Re: This student loan debt crisis thingy is starting to scar

Postby pittsoccer33 on Wed Nov 20, 2013 3:34 pm

the median income in pittsburgh is like 30k
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Re: This student loan debt crisis thingy is starting to scar

Postby Kraftster on Wed Nov 20, 2013 3:35 pm

I have right around 6 figures left. The least I can pay is something around $800/month for a 30 year repayment on most and 20 year on a couple others.
Between what I pay in student loans every month, what I pay in day care ($1000+/month for one child), and my actual mortgage, I pay three mortgages. It's so much fun.
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Re: This student loan debt crisis thingy is starting to scar

Postby IanMoran on Wed Nov 20, 2013 3:37 pm

eddysnake wrote:I work at a University and my kids get free tuition if they choose that route. With how ridiculous it is, I'm a little torn with that decision. I would never want to force my kids to goto college somewhere, but free tuition is free tuition...

Is it a university with a major sports team? Just brain was them into loving it at a very young age.... Problem solved :) lol
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Re: This student loan debt crisis thingy is starting to scar

Postby count2infinity on Wed Nov 20, 2013 3:42 pm

When I worked at the registrar's office at Duquesne, the one lady there said she couldn't wait until her daughters were done there (they were classmates of mine) because then she could quit. The only reason she was working there was so they would get free education.
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Re: This student loan debt crisis thingy is starting to scar

Postby columbia on Wed Nov 20, 2013 3:44 pm

count2infinity wrote:When I worked at the registrar's office at Duquesne, the one lady there said she couldn't wait until her daughters were done there (they were classmates of mine) because then she could quit. The only reason she was working there was so they would get free education.


I had a number of office jobs as work study student and free tuition for the kids was a great motivator for keeping people on staff.
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Re: This student loan debt crisis thingy is starting to scar

Postby TheHammer24 on Wed Nov 20, 2013 3:47 pm

shafnutz05 wrote:
Kraftster wrote:
TheHammer24 wrote:Let’s assume the average person makes $60,000 - $70,000 a year, which I think is a modest estimate.


Really? That seems wildly optimistic.

You're probably right. I live in Chicago, where the median income is higher. Plus, you begin developing tunnel vision and fail to realize your friend group and colleagues aren't necessarily representative.
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Re: This student loan debt crisis thingy is starting to scar

Postby eddysnake on Wed Nov 20, 2013 3:51 pm

IanMoran wrote:
eddysnake wrote:I work at a University and my kids get free tuition if they choose that route. With how ridiculous it is, I'm a little torn with that decision. I would never want to force my kids to goto college somewhere, but free tuition is free tuition...

Is it a university with a major sports team? Just brain was them into loving it at a very young age.... Problem solved :) lol


it is and I conveniently work in Athletics so job done.
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