Gotta love compounding interest. My student loans are paid off because I was in a major car accident. I mean, I’m going to be dealing with the injuries for the rest of my life, but the insurance pay out was enough to cover my student loans.
I got out with $150k, paid $20k down the first year, got divorced (lol, some connection to the two anyway), and now owe $160k. That $20k sure was useful...
As of today, I owe about $45,000. In my view the problem can be viewed thusly:
Higher education is regarded as a professional necessity, priced as a luxury, and is functionally a piece of paper.
Many kids go to college, so that they can get a job, so that they can afford a job to pay for college.
The big one: The only person who can POSSIBLY lose in the current system is the student. The government guarantees the loan. It isn’t discharged in bankruptcy and the interest ensures it is profitable for the government. No matter what, they get paid.
The institution is guaranteed the money from the government irrespective of the students success or failure in completing the degree. The school actually even receives grant money, sometimes in the tens of millions of dollars.
Finally the teachers. They get paid whether you pass or fail. Whether you learn or not. Yo don’t even need to go to class. After a short time, you can’t even get a refund after dropping or taking an incomplete.
The student bears ALL (100%) THE RISK with the AMERICAN MODEL OF HIGHER ED.
Now here is the effing cherry on top 🍒:
IN 2011 CONGRESS DECIDED TO DOUBLE THE INTEREST RATE ON MOST STUDENT LOANS WITHOUT ACTUALLY VOTING ON THE MEASURE.
It will cripple err our economy like the housing bubble in less than 10 years if we don’t act.
drhdoofenshmirtz on September 20th, 2018 at 02:51 UTC »
Gotta love compounding interest. My student loans are paid off because I was in a major car accident. I mean, I’m going to be dealing with the injuries for the rest of my life, but the insurance pay out was enough to cover my student loans.
SomeStupidFucker on September 20th, 2018 at 03:13 UTC »
I got out with $150k, paid $20k down the first year, got divorced (lol, some connection to the two anyway), and now owe $160k. That $20k sure was useful...
StormCrow1986 on September 20th, 2018 at 06:52 UTC »
As of today, I owe about $45,000. In my view the problem can be viewed thusly:
Higher education is regarded as a professional necessity, priced as a luxury, and is functionally a piece of paper.
Many kids go to college, so that they can get a job, so that they can afford a job to pay for college.
The big one: The only person who can POSSIBLY lose in the current system is the student. The government guarantees the loan. It isn’t discharged in bankruptcy and the interest ensures it is profitable for the government. No matter what, they get paid.
The institution is guaranteed the money from the government irrespective of the students success or failure in completing the degree. The school actually even receives grant money, sometimes in the tens of millions of dollars.
Finally the teachers. They get paid whether you pass or fail. Whether you learn or not. Yo don’t even need to go to class. After a short time, you can’t even get a refund after dropping or taking an incomplete.
The student bears ALL (100%) THE RISK with the AMERICAN MODEL OF HIGHER ED.
Now here is the effing cherry on top 🍒:
IN 2011 CONGRESS DECIDED TO DOUBLE THE INTEREST RATE ON MOST STUDENT LOANS WITHOUT ACTUALLY VOTING ON THE MEASURE.
It will cripple err our economy like the housing bubble in less than 10 years if we don’t act.