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Well the problem is that while $400/month may seem to you like a reasonable amount of cash to set aside, for many people it's not possible. It's quite funny you

by smcl 7y ago

Well the problem is that while $400/month may seem to you like a reasonable amount of cash to set aside, for many people it's not possible. It's quite funny you chose $400 actually - since there was a story recently about how a substantial amount of americans couldn't get their hands on $400 in a one-off emergency (https://www.bloomberg.com/news/articles/2019-05-23/almost-40-of-americans-would-struggle-to-cover-a-400-emergency https://www.bloomberg.com/news/articles/2019-05-23/almost-40...) let alone once a month for seven years.

zdragnar 7y ago
It is reasonably small for a debt load for someone who has a degree, has been frugal, and is on an income based repayment plan. Most americans are not those things, and too few are frugal. I recall my grandfather being proud of only having a $25 electricity bill... granted, it was about 20 years ago, so prices were a bit lower, but it was for a two story house. Edit- also, that $400 was chosen for the payoff period, not a minimum payment. I believe the minimum on that would be closer to perhaps $200 a month.
- smcl 7y ago
  Well, I just showed that apparently it is not a reasonably small debt load for many! Even if you halved the amount - as I said, if people struggle to get $400 for one-off emergency expense would they be able to afford $200 each month? Also we have more than doubled the time to pay off the principle, I hope everyone's got a nice low interest rate! I get what you're trying to say - you see that people have the latest iPhones, buying expensive sneakers and sharing pics of their exotic holidays. It's easy to then look at the student loan crisis, connect the dots and think "Ah, it's all these people with their iPhones, sneakers and holidays! I however have lived frugally, more people should live like me". Everyone's circumstances are different, but I think I can guarantee that student loan debt is a problem not because graduates go on to eat avocado toast every day (or whatever people are upset about this week) but simply because to attend higher education the costs in the USA are astronomically high and generally require either incurring huge quantities of debt or the enormous good fortune of coming from wealth.
- pnutjam 7y ago
  I'm guessing you own your own home, locked in around 20 years ago. You do know what rents are now, right? If you have to carry family health insurance, that's another huge chunk of money.

by smcl 7y ago

zdragnar 7y ago

It is reasonably small for a debt load for someone who has a degree, has been frugal, and is on an income based repayment plan. Most americans are not those things, and too few are frugal. I recall my grandfather being proud of only having a $25 electricity bill... granted, it was about 20 years ago, so prices were a bit lower, but it was for a two story house. Edit- also, that $400 was chosen for the payoff period, not a minimum payment. I believe the minimum on that would be closer to perhaps $200 a month.

smcl 7y ago
Well, I just showed that apparently it is not a reasonably small debt load for many! Even if you halved the amount - as I said, if people struggle to get $400 for one-off emergency expense would they be able to afford $200 each month? Also we have more than doubled the time to pay off the principle, I hope everyone's got a nice low interest rate! I get what you're trying to say - you see that people have the latest iPhones, buying expensive sneakers and sharing pics of their exotic holidays. It's easy to then look at the student loan crisis, connect the dots and think "Ah, it's all these people with their iPhones, sneakers and holidays! I however have lived frugally, more people should live like me". Everyone's circumstances are different, but I think I can guarantee that student loan debt is a problem not because graduates go on to eat avocado toast every day (or whatever people are upset about this week) but simply because to attend higher education the costs in the USA are astronomically high and generally require either incurring huge quantities of debt or the enormous good fortune of coming from wealth.
pnutjam 7y ago
I'm guessing you own your own home, locked in around 20 years ago. You do know what rents are now, right? If you have to carry family health insurance, that's another huge chunk of money.