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The way we do student loans, with the educational institution having no negative effects when the student fails to get a job that pays it back - it's terrible.
by NotSammyHagar 6y ago
The way we do student loans, with the educational institution having no negative effects when the student fails to get a job that pays it back - it's terrible. The students can't expunge the loan in bankruptcy, and colleges have a lot of financial encouragement to make costs such that they go as high as the loans do. These loans actually greatly retard the financial growth of society because the trillions owed mean people delay buying a house, can't spend money on other things. Separate from interest rates, student loans are terrible for the economy. Not in theory, but in clear and easy view.
- cableshaft 6y agoI would agree there are serious issues with student loans, just that charging interest isn't necessarily one of them (again, the rate might be too high, I do know people that have been paying for years and owe more now than when they started, that's screwed up). I am still under student loans myself and have been paying them for over 10 years at this point. I was on track to pay them off by the end of the year, but decided to stop paying when they paused interest and allowed pausing payments, to give us more money for other things, since my wife is currently only working 2 days a week and making 40% of her income right now anyway. But in order to actually start making head way on my loans I had to start overpaying by about 25% what they required every month. Before that I wasn't making much progress. Not everyone can afford to do that (in fact my wife is stuck under a much heavier student loan burden than I ever was). Again, if there is no interest, the incentive to pay them off drops quite a bit, like what both me and my wife are doing right now.