Forgive Student Loan Debt

[OldManOnFire]

Obama is pandering because his economic / jobs policy has failed.


"Stubbornly high unemployment -- nearly 15% for those ages 20-24 -- has made finding a job nearly impossible"
.

Two things I propose;

1. Every American receiving government support needs to perform some form of work; I don't care if this is volunteering. I don't care if this is picking up litter from the roadways.

2. Instead of all the social programming and welfare which nets nothing, the government should be spending on projects which actually provide something for the USA; like infrastructure. Transfer $200 billion from military spending, then add another $800 billion in stimulus money, and this $1 trillion will create 6.7 million jobs!

At least...at a minimum...let's try to be productive...let's build stuff for the USA which benefits all citizens and creates employment. If the private sector cannot grow enough to provide more jobs, then government needs to raise taxes on everyone in order to keep works-progress type projects going...

 

[Katzndogz]

Part of the blame for tuition hikes does belong to the government. Colleges and Universities hiked tuitions because the loans were so easy to get. Professors got enormous hikes in salaries and the administrations were able to build new stadiums, new buildings, and enhance their images using this free money.

No matter if loans are difficult or easy to obtain, those taking out the loans should not be so stupid that they don't understand or care about the $25,000 in debt they are creating which must be repaid at prescribed terms and interest rates. Every student who applied for a loan did so willingly with no gun held to their head! Do not blame government for people not taking responsibility for THEIR actions...

These kids were led to believe that they would get good jobs holding degrees in transgender pottery making. Now that they find out they are holding worthless degrees they are understandably upset. They are, in some ways, like the person who falls for some stock scheme and lured into investing into a worthless company. These students were lied to from the very beginning. Mostly lied to by the universities themselves. These students bought easy classes and lots of drinking, drugs, sex and parties as the college experience. They got what they paid for, they just paid too much for it.

 

[Katzndogz]

Obama is pandering because his economic / jobs policy has failed.


"Stubbornly high unemployment -- nearly 15% for those ages 20-24 -- has made finding a job nearly impossible"
.

Two things I propose;

1. Every American receiving government support needs to perform some form of work; I don't care if this is volunteering. I don't care if this is picking up litter from the roadways.

2. Instead of all the social programming and welfare which nets nothing, the government should be spending on projects which actually provide something for the USA; like infrastructure. Transfer $200 billion from military spending, then add another $800 billion in stimulus money, and this $1 trillion will create 6.7 million jobs!

At least...at a minimum...let's try to be productive...let's build stuff for the USA which benefits all citizens and creates employment. If the private sector cannot grow enough to provide more jobs, then government needs to raise taxes on everyone in order to keep works-progress type projects going...

Ahhh yes, the Soviet solution. It didn't work there either.

 

[OldManOnFire]

Part of the blame for tuition hikes does belong to the government. Colleges and Universities hiked tuitions because the loans were so easy to get. Professors got enormous hikes in salaries and the administrations were able to build new stadiums, new buildings, and enhance their images using this free money.

No matter if loans are difficult or easy to obtain, those taking out the loans should not be so stupid that they don't understand or care about the $25,000 in debt they are creating which must be repaid at prescribed terms and interest rates. Every student who applied for a loan did so willingly with no gun held to their head! Do not blame government for people not taking responsibility for THEIR actions...

These kids were led to believe that they would get good jobs holding degrees in transgender pottery making. Now that they find out they are holding worthless degrees they are understandably upset. They are, in some ways, like the person who falls for some stock scheme and lured into investing into a worthless company. These students were lied to from the very beginning. Mostly lied to by the universities themselves. These students bought easy classes and lots of drinking, drugs, sex and parties as the college experience. They got what they paid for, they just paid too much for it.

No one led any kid to believe they will earn (x)$ if they obtain a certain degree?? Don't make up stuff just to make some point which is not valid.

Degrees ARE NOT worthless! First off, no matter the degree, this is better than 25 million other job seekers with no college. Secondly, those with college degrees have an unemployment rate which I believe is like 2%!

Your political bias has you believing someone lied to these kids which is absurd at best!

 

[chanel]

I'd be curious to know how many of these poor, indebted college grads have credit cards at 18 percent. My guess is quite a few. Paying a high interest rate for Victoria's Secret would be ok; but not 6 percent on a college loan. Insanity.

Drive a used car and pay the damn thing off for crying out loud.

 

[OldManOnFire]

I'd be curious to know how many of these poor, indebted college grads have credit cards at 18 percent. My guess is quite a few. Paying a high interest rate for Victoria's Secret would be ok; but not 6 percent on a college loan. Insanity.

Drive a used car and pay the damn thing off for crying out loud.

What percentage of them spend more at Starbucks each month than the supposed monthly payment increase? It's not about a lack of money; it's about prioritizing our spending to meet our legal obligations.

I'd like to see an accounting of those with college loans; how many obtained a college degree, how many pursued unnecessary college credits as it pertains to a career, how many are unemployed or underemployed, how many are working but earn less than the median income of $55K?

 

[KevinWestern]

I'd be curious to know how many of these poor, indebted college grads have credit cards at 18 percent. My guess is quite a few. Paying a high interest rate for Victoria's Secret would be ok; but not 6 percent on a college loan. Insanity.

Drive a used car and pay the damn thing off for crying out loud.

I think that you need to first take into consideration that there's a big difference between interest rates when it relates to (a) a large sum of long term debt (college loans) vs (b) a small sum of short term debt (credit card).

A $200 charge at Victoria's Secret will get paid off within a month (or a few months). The 18% interest will not have that big of an effect. But a $30,000 charge at 18% that's being paid off over the course of 10 years; well, that's a whole different story.

 

[OldManOnFire]

I'd be curious to know how many of these poor, indebted college grads have credit cards at 18 percent. My guess is quite a few. Paying a high interest rate for Victoria's Secret would be ok; but not 6 percent on a college loan. Insanity.

Drive a used car and pay the damn thing off for crying out loud.

I think that you need to first take into consideration that there's a big difference between interest rates when it relates to (a) a large sum of long term debt (college loans) vs (b) a small sum of short term debt (credit card).

A $200 charge at Victoria's Secret will get paid off within a month (or a few months). The 18% interest will not have that big of an effect. But a $30,000 charge at 18% that's being paid off over the course of 10 years; well, that's a whole different story.

Average credit card debt per household with credit card debt: $15,799

There are about 180 million credit card holders.

Student loans are not 18%.

Undergraduates are carrying record-high credit card balances. The average (mean) balance is $3,173. Seniors graduated with an average credit card debt of more than $4,100, up from $2,900 almost four years ago. Close to one-fifth of seniors carried balances greater than $7,000.

Credit card debt is a big deal...

 

[peach174]

I was watching the Senate floor on c-span and Dem's have a bill up for vote, to take payroll taxes, out of SSI and Medicare payments to pay for these student loans from S Corporations.
Once again Dem's want to steal from Seniors retirement insurance and their health care to pay for lowering the interest rates for student loans.
Like they haven't taken enough out of Medicare, already.

Bill Text - 112th Congress (2011-2012) - THOMAS (Library of Congress)

 

[KevinWestern]

I'd be curious to know how many of these poor, indebted college grads have credit cards at 18 percent. My guess is quite a few. Paying a high interest rate for Victoria's Secret would be ok; but not 6 percent on a college loan. Insanity.

Drive a used car and pay the damn thing off for crying out loud.

I think that you need to first take into consideration that there's a big difference between interest rates when it relates to (a) a large sum of long term debt (college loans) vs (b) a small sum of short term debt (credit card).

A $200 charge at Victoria's Secret will get paid off within a month (or a few months). The 18% interest will not have that big of an effect. But a $30,000 charge at 18% that's being paid off over the course of 10 years; well, that's a whole different story.

Average credit card debt per household with credit card debt: $15,799

There are about 180 million credit card holders.

Student loans are not 18%.

Undergraduates are carrying record-high credit card balances. The average (mean) balance is $3,173. Seniors graduated with an average credit card debt of more than $4,100, up from $2,900 almost four years ago. Close to one-fifth of seniors carried balances greater than $7,000.

Credit card debt is a big deal...

Very interesting. Didn't realize the average credit card debt was that high (really?). I happen to use Amex almost exclusively, and then pay off the balance at the end of the month. It keeps you from living beyond your means.

.

 

[Staidhup]

Hilarious posts by those that want it for nothing, I leveraged my home, and my kids had part time jobs while at college, worked and saved each summer, didn't have a car, and majored in a field that would serve them in getting a well paying job. All are employed, all live within their means, furthermore they all three helped me retire their college debt. So what your saying was they should have majored in a dead end field and waited for Sammy to pay off their debt so they could protest in a park? Right!

 

[chanel]

I think that you need to first take into consideration that there's a big difference between interest rates when it relates to (a) a large sum of long term debt (college loans) vs (b) a small sum of short term debt (credit card).

A $200 charge at Victoria's Secret will get paid off within a month (or a few months). The 18% interest will not have that big of an effect. But a $30,000 charge at 18% that's being paid off over the course of 10 years; well, that's a whole different story.

Average credit card debt per household with credit card debt: $15,799

There are about 180 million credit card holders.

Student loans are not 18%.

Undergraduates are carrying record-high credit card balances. The average (mean) balance is $3,173. Seniors graduated with an average credit card debt of more than $4,100, up from $2,900 almost four years ago. Close to one-fifth of seniors carried balances greater than $7,000.

Credit card debt is a big deal...

Very interesting. Didn't realize the average credit card debt was that high (really?). I happen to use Amex almost exclusively, and then pay off the balance at the end of the month. It keeps you from living beyond your means.

.

Yep. But credit cards (and loans) allow people to live beyond their means. And when you are in debt and crying about it you shouldn't buy expensive underwear. Chanel's tip for the day. Lol

 

[OldManOnFire]

I was watching the Senate floor on c-span and Dem's have a bill up for vote, to take payroll taxes, out of SSI and Medicare payments to pay for these student loans from S Corporations.
Once again Dem's want to steal from Seniors retirement insurance and their health care to pay for lowering the interest rates for student loans.
Like they haven't taken enough out of Medicare, already.

Bill Text - 112th Congress (2011-2012) - THOMAS (Library of Congress)

Everything about government today is so smoke & mirrors!!

If government wishes to implement some legislation, then if government does not have the balls to ask the taxpayers for some more taxes in order to fund the program, then the program should not be implemented!

If government wishes to reduce other budget line items in order to pay for new stuff, then instead of just stealing the money...they must also reduce or cancel the program from where they stole the money.

Regarding whether all of this smoke & mirrors government management is good or bad is up to the voter to decide at this next election...at all elections...

 

[OldManOnFire]

I think that you need to first take into consideration that there's a big difference between interest rates when it relates to (a) a large sum of long term debt (college loans) vs (b) a small sum of short term debt (credit card).

A $200 charge at Victoria's Secret will get paid off within a month (or a few months). The 18% interest will not have that big of an effect. But a $30,000 charge at 18% that's being paid off over the course of 10 years; well, that's a whole different story.

Average credit card debt per household with credit card debt: $15,799

There are about 180 million credit card holders.

Student loans are not 18%.

Undergraduates are carrying record-high credit card balances. The average (mean) balance is $3,173. Seniors graduated with an average credit card debt of more than $4,100, up from $2,900 almost four years ago. Close to one-fifth of seniors carried balances greater than $7,000.

Credit card debt is a big deal...

Very interesting. Didn't realize the average credit card debt was that high (really?). I happen to use Amex almost exclusively, and then pay off the balance at the end of the month. It keeps you from living beyond your means.

.

AMX is also my card of choice partially for that reason.

If the 'personal consumption' part of the US economy needed to be cash on delivery, the US will implode! We abuse consumer debt and consider this abuse normal. A person who earns $50K in cash each year can purchase $200K with debt, which IMO means this person is creating inflation at a $200K rate and not at a $50K rate. Once we tie up all of our credit, and are forced into a cash world, not only does our consumption slow but what we are consuming is at greatly inflated pricing.

Debt USED to be a nice concept in which most people saved at least 10% of their incomes, kept debt to income ratio low like 30-40%. In this context debt consumption can be a good thing. But the way we do it today is at best reckless and careless and stupid...

 

[OldManOnFire]

Hilarious posts by those that want it for nothing, I leveraged my home, and my kids had part time jobs while at college, worked and saved each summer, didn't have a car, and majored in a field that would serve them in getting a well paying job. All are employed, all live within their means, furthermore they all three helped me retire their college debt. So what your saying was they should have majored in a dead end field and waited for Sammy to pay off their debt so they could protest in a park? Right!

Kind of hinges on that 'sense of entitlement' expectation doesn't it...with a heavy dose of not taking responsibility for one's actions.

This actually works just fine as long as this behavior represents .000001% of society. But when it starts to approach 10% and 20% or higher it simply cannot be sustained by the 'few' who are asked to fund everything...

 

[logical4u]

Student loan debt will never be forgiven. The burden of paying the debt will be shifted to the tax payer, but it won't be forgiven. Suppose it was, a $60,000 loan is forgiven resulting in windfall income to the student of $60,000 for one year that the student now owes taxes on. Like any other debt that's forgiven. The outrage now isn't to forgive the loan, but forgiven the taxes on the loan that has become unearned income.

Let me guess.... another $5,000,000,000 for the taxpayer (including the "students that actually get jobs), and yet, Obama doesn't say a single word about the debt he is placing on his children and our children for the "future".

Forward! Lemmings!

 

[logical4u]

Funny, the O, isn't mentioning the "students' share of the 5,000,000,000 debt he is racking up (soon to be more). He is only focusing on the naive children going to college, and telling them it is all about taking care of them, while he is slipping the yoke over their shoulders. When he is done, they will pay for his debt for the rest of their lives (and if he is re-elected, their children will be born wearing yokes). Wake up, America!

$5 billion is really not that hard to pay back.

And note, the children will be paying back BOTH Obama's and Bush's debt for the rest of their lives. The a Republican Party sucks too, you know.

My mistake: $5,000,000,000,000 plus what ever he is "promising" the "students, the taxpayers are going to pay for them too. If the guy was genuine, he would be focusing on "making" an environment that would encourage job creation, not unemployment, and spreading the misery.

 

[The Infidel]

Either educate yourself, or butt out. Your kneejerk reacting doesn't facilitate discussion.

They have a point.

I'm not even sure the person who would pay $119 a month for 23 years and never up her payments and never refinance at a lower rate, and get herself into a situation where she'd be paying triple (what?), deserves any credence when talking finances.

 

[logical4u]

Funny, the O, isn't mentioning the "students' share of the 5,000,000,000 debt he is racking up (soon to be more). He is only focusing on the naive children going to college, and telling them it is all about taking care of them, while he is slipping the yoke over their shoulders. When he is done, they will pay for his debt for the rest of their lives (and if he is re-elected, their children will be born wearing yokes). Wake up, America!

Plus, much of Obama's spending was reactionary due to the recession (unemployment - for example). If you really want to get mad at the government debt, you should start with the Bush years. During this time, the government stupidly thought that it made sense to uphold major tax cuts during a time when it needed to fund two major wars. Morons.

That's like a person who just got a 20% cut in pay thinking it's OK to drastically increase their spending habits.

That would fly for the first year, maybe the second. We are now in the third year of his Presidency with no control on spending. His budget told America just how he wanted to spend MORE. The democrats were too embarrassed to even vote on it.
BTW, I was upset with how Bush turned his back to fiscal conservatism.
But the dems passed (they do control half the legislative and the executive branch) the bill keeping the "Bush" tax cuts in place, after the election. If it was going to be that beneficial to the gov't, why didn't they allow them to end? Why did they concentrate on passing an unpopular "mandate" to control "subjects"?
Why are they talking about raising taxes on capital gains? I will give you a hint and it doesn't include any Wall Street wealthy people....can you say mom and pop's 401K, that will have the taxes almost doubled on it? The sad part is that the fools will vote for it, thinking they are going to be hurting the "wealthy", when all they are doing is giving congress permission to tax their retirement accounts into oblivion. The next twenty years are going to make for some strange room mates: children that can't get a job and living at home/ parents that are wiped out from taxes allowing to their eventually employed student children to take over the house and then the parents moving into the basement, while the children are raising families in the same house. People moving into together to make ends meet. This man, the President is setting this country onto the path of becoming something it never was, a society of subjects, that looks to the gov't to show them how to think, eat, exercise, work, etc.

Forward! LEMMINGS

 

[Katzndogz]

No matter if loans are difficult or easy to obtain, those taking out the loans should not be so stupid that they don't understand or care about the $25,000 in debt they are creating which must be repaid at prescribed terms and interest rates. Every student who applied for a loan did so willingly with no gun held to their head! Do not blame government for people not taking responsibility for THEIR actions...

These kids were led to believe that they would get good jobs holding degrees in transgender pottery making. Now that they find out they are holding worthless degrees they are understandably upset. They are, in some ways, like the person who falls for some stock scheme and lured into investing into a worthless company. These students were lied to from the very beginning. Mostly lied to by the universities themselves. These students bought easy classes and lots of drinking, drugs, sex and parties as the college experience. They got what they paid for, they just paid too much for it.

No one led any kid to believe they will earn (x)$ if they obtain a certain degree?? Don't make up stuff just to make some point which is not valid.

Degrees ARE NOT worthless! First off, no matter the degree, this is better than 25 million other job seekers with no college. Secondly, those with college degrees have an unemployment rate which I believe is like 2%!

Your political bias has you believing someone lied to these kids which is absurd at best!

This is a rather old study.

The unemployment rate for 18-to-24 year-olds is 16.3 percent, according to the Pew Research Center—which used numbers from the U.S. Bureau of Labor Statistics to compile its data. The number of employed college-aged Americans is the lowest since the government began keeping tabs in 1948.

Employment for college-aged students hit all time low - News - Indiana Statesman - Indiana State University

Lets use something newer.


53% of Recent College Grads Are Jobless or Underemployed—How? - Jordan Weissmann - Business - The Atlantic

53% of Recent College Grads Are Jobless or Underemployed

More than half of America's recent college graduates are either unemployed or working in a job that doesn't require a bachelor's degree, the Associated Press reported this weekend

That said, not all degrees are created equal. The AP reports that students who graduated out of the sciences or other technical fields, such as accounting, were much less likely to be jobless or underemployed than humanities and arts graduates. You know that old saw about how college is just about getting a fancy piece of paper? Not true. For an education to be worth anything these days, it needs to impart skills.

When there were fewer graduates, a generic college degree used to be a valuable credential. Now that the market is flooded, diplomas count less, and specific skills count more. This means that, in many instances, associates and technical degrees may be more financially valuable than a liberal arts degree. After all, some of the fastest growing job categories are expected to be in so-called "middle-skill" positions such as nursing, which do not require a full, four-year education. It's one more sign that, for people seeking to fix America's employment picture, "college for all" is the wrong mantra. We need to be talking about "skills for all" instead.