Forgive Student Loan Debt

[OldManOnFire]

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.

Maybe you should study this government data; Table A-4. Employment status of the civilian population 25 years and over by educational attainment

It is stupid to believe that a person has no advantage in job seeking if they possess a college degree?

If they possess a college degree in which the supply is much greater than the demand, then they will have more struggle finding employment. But they can obtain more education, more skills, or change direction, whatever is necessary to chase the available jobs...

An argument that flies in the face of reality. They can acquire more skills or even SOME skills. Skills are something that grads don't get from vanity degrees.

Fact remains that the unemployment rate for those with college degrees is much less than those without college degrees.

Also this morning on the local news a statement was made that a person with a college degree and working in the Silicon Valley area earned 2-1/2 times as much compensation as a worker with a high school diploma...

 

[Toddsterpatriot]

In BOLD above this is not true at all. Pre-taxed 401K investments are not taxed again when cashed out. Tax-deferred 401K investments must pay applicable income taxes when cashed out. On both investments above, any gain on the original investment is subject to capital gains taxes when cashed out. There is some risk in tax-deferred investments because no one knows the tax rates and personal tax situation 30-40 years into the future?? We also don't know what the capital gains taxes might be in a few decades...

There is no capital gains tax on capital held inside a 401K, IRA or other tax deferred acount. Roth or otherwise.

This is true only for capital...

This is only true for the stuff inside your tax deferred account.
What's in there besides capital?

 

[Toddsterpatriot]

In BOLD above this is not true at all. Pre-taxed 401K investments are not taxed again when cashed out. Tax-deferred 401K investments must pay applicable income taxes when cashed out. On both investments above, any gain on the original investment is subject to capital gains taxes when cashed out. There is some risk in tax-deferred investments because no one knows the tax rates and personal tax situation 30-40 years into the future?? We also don't know what the capital gains taxes might be in a few decades...

All contributions to a 401K plan prior to 2006 were before tax, meaning they were not included in your current income or taxed currently. When those contributions, and the income earned on them, are distributed, income tax is due at ordinary rates; there is no capital gains tax. Beginning in 2006, an alternative plan was offered called a Roth 401K (like a Roth IRA that debuted a few years before, although not as widely available as most employers did not offer them). A contribution to a Roth 401K is included in your income currently and taxed currently. The earnings in the plan grow tax deferred and, in most cases are distributed completely free of tax, therefore, again, no capital gains tax. The main reason people choose a Roth plan is to avoid vagaries in the tax law 30-40 years into the future by paying tax on the income today; however, only a very small portion of “mom and pop’s 401K” would likely be in a Roth, because it is so new. In both cases, however, any gain on the original investment is not subject to the capital gains tax.

401(k) IRA matrix - Wikipedia, the free encyclopedia

Well my 401K plan goes back a long way and all of my contributions were pre-taxed. But within my 401K plan some of the investment was held in cash, and the rest in various stock positions. I pay no income tax on the original investment because it was pre-taxed but paid capital gains taxes on all stock gains.

BTW; government can change the taxation policy on a Roth IRA or anything anytime so there are never guarantees that tax rates, etc. will be the same 30-40 years from now.

Thank you for the information...

I pay no income tax on the original investment because it was pre-taxed but paid capital gains taxes on all stock gains.


Untrue. If you buy stock for $30 and sell it for $40, in your IRA, you'll pay zero in capital gains tax.

 

[starcraftzzz]

In BOLD above this is not true at all. Pre-taxed 401K investments are not taxed again when cashed out. Tax-deferred 401K investments must pay applicable income taxes when cashed out. On both investments above, any gain on the original investment is subject to capital gains taxes when cashed out. There is some risk in tax-deferred investments because no one knows the tax rates and personal tax situation 30-40 years into the future?? We also don't know what the capital gains taxes might be in a few decades...

All contributions to a 401K plan prior to 2006 were before tax, meaning they were not included in your current income or taxed currently. When those contributions, and the income earned on them, are distributed, income tax is due at ordinary rates; there is no capital gains tax. Beginning in 2006, an alternative plan was offered called a Roth 401K (like a Roth IRA that debuted a few years before, although not as widely available as most employers did not offer them). A contribution to a Roth 401K is included in your income currently and taxed currently. The earnings in the plan grow tax deferred and, in most cases are distributed completely free of tax, therefore, again, no capital gains tax. The main reason people choose a Roth plan is to avoid vagaries in the tax law 30-40 years into the future by paying tax on the income today; however, only a very small portion of “mom and pop’s 401K” would likely be in a Roth, because it is so new. In both cases, however, any gain on the original investment is not subject to the capital gains tax.

401(k) IRA matrix - Wikipedia, the free encyclopedia

If you vote for an increase in capital gains tax (thinking you are sticking it to the "wealthy"), 401K 'capital gains' can be taxed at a the same higher rate when you start withdrawing it. The people that make the rules are playing "bait and switch". They are holding out the "rich" to make you think you will be taking more from them, in reality, they will write loopholes (how many 'middle income' people do you think are in congress, seriously?) to protect the wealthy and the average 'subject' will lose most of their 401K gains and interest to the gov't. And the ones that voted for it will be too embarrassed to open their mouths.

I see so you are such a retard that you think raising taxes on capitals gains increases on yearly withdrawings of above 250,000 means higher taxes on withdrawing below that.
Plz get a brain dumbass

 

[California Girl]

I am forgiving it, but I don't think the universities who robbed these kiddies have any intention of paying it back to them.I think all the universities have done a free education loan who have not paid your fees.

The universities forced these 'kiddies' to attend? I think you'll find they did not.

 

[KissMy]

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 personally know a few who have bought a new car, expensive clothes & shoes with their student loan money while attending college. 2 years after graduating & they still have yet to make any student loan payments.

 

[OldManOnFire]

There is no capital gains tax on capital held inside a 401K, IRA or other tax deferred acount. Roth or otherwise.

This is true only for capital...

This is only true for the stuff inside your tax deferred account.
What's in there besides capital?

Thank you and never mind an old man talking...

 

[OldManOnFire]

All contributions to a 401K plan prior to 2006 were before tax, meaning they were not included in your current income or taxed currently. When those contributions, and the income earned on them, are distributed, income tax is due at ordinary rates; there is no capital gains tax. Beginning in 2006, an alternative plan was offered called a Roth 401K (like a Roth IRA that debuted a few years before, although not as widely available as most employers did not offer them). A contribution to a Roth 401K is included in your income currently and taxed currently. The earnings in the plan grow tax deferred and, in most cases are distributed completely free of tax, therefore, again, no capital gains tax. The main reason people choose a Roth plan is to avoid vagaries in the tax law 30-40 years into the future by paying tax on the income today; however, only a very small portion of “mom and pop’s 401K” would likely be in a Roth, because it is so new. In both cases, however, any gain on the original investment is not subject to the capital gains tax.

401(k) IRA matrix - Wikipedia, the free encyclopedia

Well my 401K plan goes back a long way and all of my contributions were pre-taxed. But within my 401K plan some of the investment was held in cash, and the rest in various stock positions. I pay no income tax on the original investment because it was pre-taxed but paid capital gains taxes on all stock gains.

BTW; government can change the taxation policy on a Roth IRA or anything anytime so there are never guarantees that tax rates, etc. will be the same 30-40 years from now.

Thank you for the information...

I pay no income tax on the original investment because it was pre-taxed but paid capital gains taxes on all stock gains.


Untrue. If you buy stock for $30 and sell it for $40, in your IRA, you'll pay zero in capital gains tax.

I didn't have an IRA...I had an old 401K plan in which I invested only after-tax contributions...