Student debt out of control???

Discussion in 'Politics' started by BOBO, Nov 7, 2011.

  1. BOBO
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    BOBO The Magnificent!

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    According to the link below, American students in debt to educational loans has reached a trillion dollars...

    Paul would ax five agencies, hits focus on Romney's lawn - Washington Times

    Worse, they can't get jobs due to the miserable state of the American economy. The interest alone on these educational debts must be substantial. Is it time to bring back the smokestack industry of manufacturing to get real jobs back in country instead of tax funded government pencil pushing jobs???
     
  2. The Rabbi
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    The Rabbi Diamond Member

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    Average student debt is about $25,000, which is a new car note.
     
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  3. auditor0007
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    auditor0007 Gold Member

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    The worst thing about the student loan debt is that it is keeping younger workers from moving forward. Many are finding it difficult to buy homes or even new cars due to having too much debt from school loans, along with other things. It's just another drag on the economy.

    We really need to look at our educational system, especially post high school. Kids are wasting money going to college in many cases. We need schools that teach specific skills that can actually be used in the workplace and that employers are looking for. Why not let major employers structure educational programs to fit their own hiring needs? This could be done by having them work directly with universities or by setting up their own schools.
     
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  4. The Rabbi
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    The Rabbi Diamond Member

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    Geez, we agree.
    But that is not an argument for reducing student debt.
     
  5. idb
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    idb Gold Member

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    A few years ago our government decided that a 'Knowledge Economy' was the future of our great country.
    They scrapped subsidies for trade training and actively encouraged kids to go into tertiary education with funding of said institutions and a student loan scheme that meant all you had to do was enrol in a tertiary teaching institution then rack up as big a debt as you like.

    The consequence is that we have a severe shortage of tradespeople and an oversupply of accountants, lawyers and people with diplomas in massage and flower arranging.

    The smart ones buggered off overseas so that they won't have to pay it back.
     
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  6. Cammmpbell
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    Cammmpbell Senior Member

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    The graduates don't owe debts to public schools. Universities have become corporations. Students pay for salaries, maintenance, research, bonuses, pensions etc. It's the same damn thing that wrong from one end of this country to the other. GREED. We're slowly dividing into a society made up of the haves and the have nots.
     
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  7. candycorn
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    candycorn Alis volat propriis

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    College Education needs to be 100% tax deductible IF we're going to have deductions; this is the thing to give a break on; not on capital gains, windfall profits, if you happen to have 5 kids instead of four, etc...

    That is step one. Step II is to allow a deduction from the payroll check much like we have for FICA so payment of federally guaranteed loans is done pre-tax to lessen the tax bill of the students.

    Lastly, and most importantly, I think if the student is getting a federally guaranteed student loan, perhaps they could pay it off in sweat equity of joining the armed services if they are in a field that the services require, working in distressed areas, etc...
     
  8. editec
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    editec Mr. Forgot-it-All

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    If anything college costs and interest paid on debts, too ought to be 100% deductable.

    Additionally the deductions ought to be useable when the citizen DECIDES he or she wants to take those deductions.

    For most kids just leaving college won't need tax deductions for quite a while because their incomes won't be large enough to offset the deductions.

    When those college grads start to make enough money to have to pay taxes, THEN they ought to be able to deduct their college costs.
     
  9. Big Black Dog
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    Big Black Dog Gold Member Supporting Member

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    And just who's fault is this? If a student has debt, they should be the one's responsible for paying it off. I have two college degrees and I paid for each of them myself. Ever hear that you could work while you go to college?
     
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  10. The Rabbi
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    The Rabbi Diamond Member

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    College education is a poorer return than invested capital. Why would we want to encourage poor investments? Most people have no business going to college.
    If ex students are employed, they can pay back their loans. As I recall repayment is based on salary. Why should ths get a tax break?
    Finally, you want the gov't to pay your tax bill? Join ROTC. We need to pressure those Ivies that don't have ROTC programs to let them in.
     

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