4 ms·

What I enjoyed most was this recent ad by bank of america which says "student loans are a fact of life". So instead of object to these ridiculously high tuition

What I enjoyed most was this recent ad by bank of america which says "student loans are a fact of life". So instead of object to these ridiculously high tuition fees, we should just accept debt as a fact of life.

brianwawok 12y ago
70%+ of Americans accept "a mortgage" as a fact of life, and don't stress out. Its either pay $600 to some guy to rent a house, or buy a house but pay a $600 mortgage. Overall this is not a terrible strategy, and mortgages are good for a lot of people... Some high % of Americans think the same thing about a new car every 3-5 years. This is a little more insane as people could build a lot more wealth if they drive a car 10 years, and use the extra money to invest in wealth building. So in a perverse sort of way, I see where this ad is coming from. My guess is with a house, you have a physical object. You can (usually) unload it and pay the loan back. The car is losing value fast, but you are in a similar boat. I guess student loans are an investment in your brain and not a thing, so people hate them more?
- unreal37 12y ago
  Getting a Masters of French History degree, with $100,000 in student debt, is what people object to. Nothing against French History, but paying $100,000 on a credit card to learn it is not "investment in your brain". Investment implies the potential for a profitable return.
  - chockablock 12y ago
    Actually, "people" don't object to spending money on education and scholarship that is not directly profitable to the student; you do.
    - closetnerd 12y ago
      Actually, "people" don't object to spending money on affordable education. People do object to paying paralyzing amounts of money of for an education that quickly begins to lose its value. I don't understand peoples logic here. As if knowing differential calculus and working to pay of tons of debt is somehow better than perhaps being a mechanic in middle america where they have time to travel the country and have little fun. Not saying that this is the case for the majority, but we're coming awfully close to it.
    - unreal37 12y ago
      I have no problem with you spending your money on whatever you want. But there is a dangerous belief that education = investment for all cases. Way too many students leave college with $50,000+ in debt for "Community Service" degree, and it becomes a burden they carry with them for a decade that restricts them from travel, living comfortably, or taking calculated but smart risks such as starting their own business. Let's at least be honest here. There should be a relationship between size of the debt you are allowed to accumulate, and the annual salary of the related profession. I think there often is not.
- gohrt 12y ago
  Your house provides value for 30, 50, 100 years (to you or whoever you sell it to). Do your student loans? They might, or they might not, but there are plenty of cases where they would not (degree programs that are not economically lucractive). You might have 30 years of enjoyment from your art history degree even if you never get an art history career to pay the bills, which is fine, if you understand what you are buying.
- Delmania 12y ago
  It's not just the collateral, usually you make a profit when you sell your house.
  - gohrt 12y ago
    "usually" is "most years, before 2009"
    - deleted 12y ago
      [deleted]
- closetnerd 12y ago
  I suppose you've purposefully neglected that tuition fees become artificially inflated due to a high credit society/economy? Since 1985, cost of college has increased by about 500% [1]. 1. http://www.washingtonpost.com/blogs/worldviews/wp/2014/10/29/7-countries-where-americans-can-study-at-universities-in-english-for-free-or-almost-free/ http://www.washingtonpost.com/blogs/worldviews/wp/2014/10/29...
niels_olson 12y ago
This is really the primary issue. Universities are building, there have never been as many deans and administrative assistants, and banks are always happy to extend more debt paying more interest than t-notes. And it's all subsidized by the government. Three scams for the price of, well, 3 scams.

brianwawok 12y ago

70%+ of Americans accept "a mortgage" as a fact of life, and don't stress out. Its either pay $600 to some guy to rent a house, or buy a house but pay a $600 mortgage. Overall this is not a terrible strategy, and mortgages are good for a lot of people... Some high % of Americans think the same thing about a new car every 3-5 years. This is a little more insane as people could build a lot more wealth if they drive a car 10 years, and use the extra money to invest in wealth building. So in a perverse sort of way, I see where this ad is coming from. My guess is with a house, you have a physical object. You can (usually) unload it and pay the loan back. The car is losing value fast, but you are in a similar boat. I guess student loans are an investment in your brain and not a thing, so people hate them more?

unreal37 12y ago
Getting a Masters of French History degree, with $100,000 in student debt, is what people object to. Nothing against French History, but paying $100,000 on a credit card to learn it is not "investment in your brain". Investment implies the potential for a profitable return.
- chockablock 12y ago
  Actually, "people" don't object to spending money on education and scholarship that is not directly profitable to the student; you do.
  - closetnerd 12y ago
    Actually, "people" don't object to spending money on affordable education. People do object to paying paralyzing amounts of money of for an education that quickly begins to lose its value. I don't understand peoples logic here. As if knowing differential calculus and working to pay of tons of debt is somehow better than perhaps being a mechanic in middle america where they have time to travel the country and have little fun. Not saying that this is the case for the majority, but we're coming awfully close to it.
  - unreal37 12y ago
    I have no problem with you spending your money on whatever you want. But there is a dangerous belief that education = investment for all cases. Way too many students leave college with $50,000+ in debt for "Community Service" degree, and it becomes a burden they carry with them for a decade that restricts them from travel, living comfortably, or taking calculated but smart risks such as starting their own business. Let's at least be honest here. There should be a relationship between size of the debt you are allowed to accumulate, and the annual salary of the related profession. I think there often is not.
gohrt 12y ago
Your house provides value for 30, 50, 100 years (to you or whoever you sell it to). Do your student loans? They might, or they might not, but there are plenty of cases where they would not (degree programs that are not economically lucractive). You might have 30 years of enjoyment from your art history degree even if you never get an art history career to pay the bills, which is fine, if you understand what you are buying.
Delmania 12y ago
It's not just the collateral, usually you make a profit when you sell your house.
- gohrt 12y ago
  "usually" is "most years, before 2009"
  - deleted 12y ago
    [deleted]
closetnerd 12y ago
I suppose you've purposefully neglected that tuition fees become artificially inflated due to a high credit society/economy? Since 1985, cost of college has increased by about 500% [1]. 1. http://www.washingtonpost.com/blogs/worldviews/wp/2014/10/29/7-countries-where-americans-can-study-at-universities-in-english-for-free-or-almost-free/ http://www.washingtonpost.com/blogs/worldviews/wp/2014/10/29...

niels_olson 12y ago

This is really the primary issue. Universities are building, there have never been as many deans and administrative assistants, and banks are always happy to extend more debt paying more interest than t-notes. And it's all subsidized by the government. Three scams for the price of, well, 3 scams.