Originally Posted by CamaroDreams07
Yeah that makes sense. I wish I had any money to invest haha. As tuition rates are outpacing inflation threefold or more, more and more young people are starting their lives in a huge hole.
For example, I had $36k in student loans for my Master's (fortunately scholarships covered undergrad). This amounts to $310/mo for ten years under the standard recommended repayment plan. That means that just to stay in a lower middle class level in the next ten years, I need to average $35k take home, so at least $50k.
Luckily, my field starts quite a bit higher, but my point is that for people who have to borrow more and land lower income jobs, this is seriously problematic for the economy.
I've said it before and I'll say it again, college is just buying a really expensive piece of paper. But as long as we have the government making student loans available at low interest rates for people who shouldn't get them, and employers insisting on at least a bachelor's degree to screw in a light bulb, this is the world we have to accept. It ****s everyone, but it makes the government and colleges a shit load of money. The current higher education system makes everyone but them worse-off.
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I agree with the societal issue and whole "you must have a bachelors to be successful". But I also have a serious issue with government backed student loans, I fully support them as I see them as an investment in it's people. But the fact in my case the interest rate was 6.5% plus they start charging interest the first check you cash, so 4 years of interest being charged is ridiculous. Luckily for today's students it's down to 3-4% which is more reasonable, but charging once it's cashed is insane. No wonder some many people default on them, they take one look and end up paying the minimum for 30 years or get income adjusted repayment plans.
Unfortunately the digging a whole is only getting worse, I have tons of friends who can't get jobs and therefore choose to go back to school, which in itself isn't a bad choice but not planning out paying back loans leads to a huge hole for them. But that's also on a person to person basis on what they think of debt-to-income ratios and how they see investments/retirement, etc...