7 ms·

I saw taking out student loans as just another hurdle I had I cross. Same with taking the ACT and writing admissions essays. I'm doing fine now and paying back

I saw taking out student loans as just another hurdle I had I cross. Same with taking the ACT and writing admissions essays. I'm doing fine now and paying back my loans. But I wish I better understood APRs and monthly payments and what those numbers actually meant in context.

NDizzle 11y ago
Did your parents never talk to you about this kind of thing? I have already had this discussion with my 10 year old. For what it's worth, I never went to college but I understand the importance of compound interest and understanding financial contracts which involve you.
- ethanbond 11y ago
  I hope your ten year old has more options available than "go to college and take a gamble on being underwater" or "learn a vocation and hope you retire before it's swallowed by outsourcing or automation." Despite the statistics, there is no obvious choice here. Why are the wise old people encouraging young people to choose the path their generation just got screwed out of? This generation of students has only ever heard of our parents longterm careers getting vanished by computers or foreigners.
  - smileysteve 11y ago
    > I hope your ten year old has more options available than "go to college and take a gamble on being underwater" or "learn a vocation and hope you retire before it's swallowed by outsourcing or automation." There are still many state schools w/ scholarships that are low priced; or upper tier schools if the family doesn't make enough money.
    - ethanbond 11y ago
      None of which guarantee a job anymore, which is exactly the problem. The average student loan debt for graduating undergrads is somewhere around $30,000. It's not like they're taking out loans to buy their way into Dartmouth. They're taking out reasonable amounts of money to go to a reasonable school to get a reasonable job. The "unrealistic idealists" in this situation are the people who think it's the student's fault for planning on getting the job that was more or less promised to them by society. And when they are woken up by the fact that there aren't jobs waiting on the other end, the rhetoric seems to be, "these stupid kids listened to what every adult in the country told them for the first 18 years of their lives!" It's shameful to act like kids should've known better than to pay for a quality education. What the hell kind of society actually places that blame on children? Now, the alternative is the same thing. Now adults are telling kids to go to vocational schools. Okay. By the time they get established in those fields, those jobs will be gone too. Then we can blame the kids for listening to us again!
  - NDizzle 11y ago
    She totally has options available. She has me for guidance! I'm not forcing anything on her. Right now she is interested in everything and I'm just helping her understand how things really work. Things like I mentioned above are critical for success - college or not.
- deleted 11y ago
  [deleted]
josephjrobison 11y ago
Yea Plus Loans are the worst at 8% interest a year. Do I invest in index funds that average 7-8% or pay down student loans that guarantee you're relieving 8% interest a year. It's very disheartening to see one losing $1k/mo purely to interest. But also a big motivation to just make more money yearly.
- Overtonwindow 11y ago
  Woah what loan are you speaking of??? My federal loan was about 3% in 2005.
  - srj 11y ago
    Federal loan rate history: http://www.finaid.org/loans/historicalrates.phtml http://www.finaid.org/loans/historicalrates.phtml I consolidated but I know that some of mine were at 6.8% fixed thanks to this lovely change: 2006-07: Replacement of separate variable in-school/grace and repayment rates on the Stafford Loan with a single fixed rate of 6.8%. Replacement of variable interest rates on the PLUS Loan with a fixed rate of 8.5% (FFELP) and 7.9% (DL).
    - jawilson2 11y ago
      I looked up my rate from 2000-2001...FFFFFUUUUUUUU
    - iambateman 11y ago
      If you don't mind, was refinancing a good move for you? What rate were you able to get it down to? We're at 6.8% right now.
      - needcaffeine 11y ago
        When I consolidated my loans, they became fixed at 6.8%. Meanwhile my wife was lazy and did nothing and then the great recession happened and her loans have been at 3% for years and years.
      - 11y ago

NDizzle 11y ago

Did your parents never talk to you about this kind of thing? I have already had this discussion with my 10 year old. For what it's worth, I never went to college but I understand the importance of compound interest and understanding financial contracts which involve you.

ethanbond 11y ago
I hope your ten year old has more options available than "go to college and take a gamble on being underwater" or "learn a vocation and hope you retire before it's swallowed by outsourcing or automation." Despite the statistics, there is no obvious choice here. Why are the wise old people encouraging young people to choose the path their generation just got screwed out of? This generation of students has only ever heard of our parents longterm careers getting vanished by computers or foreigners.
- smileysteve 11y ago
  > I hope your ten year old has more options available than "go to college and take a gamble on being underwater" or "learn a vocation and hope you retire before it's swallowed by outsourcing or automation." There are still many state schools w/ scholarships that are low priced; or upper tier schools if the family doesn't make enough money.
  - ethanbond 11y ago
    None of which guarantee a job anymore, which is exactly the problem. The average student loan debt for graduating undergrads is somewhere around $30,000. It's not like they're taking out loans to buy their way into Dartmouth. They're taking out reasonable amounts of money to go to a reasonable school to get a reasonable job. The "unrealistic idealists" in this situation are the people who think it's the student's fault for planning on getting the job that was more or less promised to them by society. And when they are woken up by the fact that there aren't jobs waiting on the other end, the rhetoric seems to be, "these stupid kids listened to what every adult in the country told them for the first 18 years of their lives!" It's shameful to act like kids should've known better than to pay for a quality education. What the hell kind of society actually places that blame on children? Now, the alternative is the same thing. Now adults are telling kids to go to vocational schools. Okay. By the time they get established in those fields, those jobs will be gone too. Then we can blame the kids for listening to us again!
- NDizzle 11y ago
  She totally has options available. She has me for guidance! I'm not forcing anything on her. Right now she is interested in everything and I'm just helping her understand how things really work. Things like I mentioned above are critical for success - college or not.
deleted 11y ago
[deleted]

josephjrobison 11y ago

Yea Plus Loans are the worst at 8% interest a year. Do I invest in index funds that average 7-8% or pay down student loans that guarantee you're relieving 8% interest a year. It's very disheartening to see one losing $1k/mo purely to interest. But also a big motivation to just make more money yearly.

Overtonwindow 11y ago
Woah what loan are you speaking of??? My federal loan was about 3% in 2005.
- srj 11y ago
  Federal loan rate history: http://www.finaid.org/loans/historicalrates.phtml http://www.finaid.org/loans/historicalrates.phtml I consolidated but I know that some of mine were at 6.8% fixed thanks to this lovely change: 2006-07: Replacement of separate variable in-school/grace and repayment rates on the Stafford Loan with a single fixed rate of 6.8%. Replacement of variable interest rates on the PLUS Loan with a fixed rate of 8.5% (FFELP) and 7.9% (DL).
  - jawilson2 11y ago
    I looked up my rate from 2000-2001...FFFFFUUUUUUUU
  - iambateman 11y ago
    If you don't mind, was refinancing a good move for you? What rate were you able to get it down to? We're at 6.8% right now.
    - needcaffeine 11y ago
      When I consolidated my loans, they became fixed at 6.8%. Meanwhile my wife was lazy and did nothing and then the great recession happened and her loans have been at 3% for years and years.
    - 11y ago