Student loan debt higher than Credit card debt.

[ZenOps]

Its actually old news, but noone brought it up.

http://www.nytimes.com/2011/04/12/ed...e.html?_r=2&hp

Thoughts? I'm a little surprised at this as student debts are usually compounded at extremely low interest rates.

In 2008, the defaults on debt due to bankruptcy probably is why the credit card debt is down, but student loans are not as easily defaultable? Sure they are near zero percent - but it seems to be much more difficult to default on a student loan.

[googe]

Student loans down here are ridiculous. It's the same thing as the mortgage crisis basically, except they can't be discharged in bankruptcy and they're backed by the government. Thanks to the Bush administration, you take them to your grave.

60k to 80k in student loans is not uncommon, and they give them out pretty easily, then just keep re-selling the debts because they're guaranteed. I've met people with >100k in student loan debt who have no degree.

[Super_Geo]

There are too many people getting degrees and not enough entering the trades.

[Zephyr]

[Sugarphreak]

...

[jaysas_63]

Originally posted by Sugarphreak
Yeah yeah, keep blaming the government... it isn't like debt isn't the fault of the people aquiring it

Yea, its my fault that my education costs over 400,000

that number inst an exaggeration, the sad part is its actually a GROSS understatement.

I am one of the few lucky ones in my program that has full support of my parents, and they have the ability to pay for my schooling. Others are not so fortunate, and they will be leaving school with hundreds of thousands in debt. Its not their fault they want to attain a certain level of education. the same education in Canada costs a fraction of what it does in the USA.

[CapnCrunch]

Originally posted by jaysas_63
[B]

Yea, its my fault that my education costs over 400,000

It's your choice to pursue higher education, knowing full well what the costs are beforehand.

It's a privilege, not a right.

[jaysas_63]

Originally posted by CapnCrunch


It's your choice to pursue higher education, knowing full well what the costs are beforehand.

It's a privilege, not a right.

an education that costs less than 100,000 in Canada, shouldn't cost close to 500,000 in the US.

the system here (USA) is flawed, and is creating a larger disparity between the upper class, and lower class. people like me can go to school worry free, and enjoy debt freedom after graduation, while those coming from lower class families are forever enslaved to there debt.

[bastardchild]

Its because in modern day society; people are forced to believe school leads to a positive way of life, which is far from the truth...

[Sugarphreak]

....

[Tik-Tok]

Originally posted by jaysas_63

the system here (USA) is flawed, and is creating a larger disparity between the upper class, and lower class. people like me can go to school worry free, and enjoy debt freedom after graduation, while those coming from lower class families are forever enslaved to there debt.

There's two good reasons for that.

A) It's more profitable for Universities to suck large sums of money from the rich.

B) Right here.

Originally posted by Super_Geo
There are too many people getting degrees and not enough entering the trades.

Too many parents push their kids to University, telling them it's for the best, but the kids aren't good enough, or don't know WTF they want to do, so they squander their first couple of years with no real direction, but keep partying it up like they're rich ballers on Student Loan money. Then drop out with $100g in debt.

I'd blame the parents/media that pushes higher education LONG before I'd blame the government. After all, the US is still a capitalist country.

EDIT:

Originally posted by jaysas_63


an education that costs less than 100,000 in Canada, shouldn't cost close to 500,000 in the US.

You also have to realize, education in Canada for Canadians is HEAVILY subsidized by the government. As much as 70%. So that "$100g" education in Canada, really costs $300g+

[Super_Geo]

Originally posted by jaysas_63


Yea, its my fault that my education costs over 400,000

that number inst an exaggeration, the sad part is its actually a GROSS understateme're at or what you're taking, but Boston has some pretty expennt.

I am one of the few lucky ones in my program that has full support of my parents, and they have the ability to pay for my schooling. Others are not so fortunate, and they will be leaving school with hundreds of thousands in debt. Its not their fault they want to attain a certain level of education. the same education in Canada costs a fraction of what it does in the USA.

I don't know where yousive schools (Harvard/MIT), for $400k I'm going to guess Harvard Medical? Whatever it is, it's definitely not for undergrad. Not everyone needs a $400k education.

In fact, I'm glad that the government chases down student loans... can you imagine how many more unemployed liberal arts grads there wouldd be if you could just borrow college tuition and then default on it as soon as you graduate and start with a clean slate?

Yeah debt is shitty, but so are people who don't pay them back. I don't care what their fucking circumstance is or what kind of a sob story they have... all I know is that they're a complete stranger to me, and because they borrowed more than they can pay back now the cost of borrowing goes up for everyone else.

[jaysas_63]

Originally posted by Sugarphreak


This is no different than me buying a Lamborghini and the bitching about the price later on citing that a Toyota costs less.

According to your car analogy, im trying to say that the cost of a toyota should be about the same in the US and CAN. you shouldnt have to pay the price of a Lambo, for a toyota in the states. and thats the problem american students face.

Originally posted by Tik-Tok




Too many parents push their kids to University, telling them it's for the best, but the kids aren't good enough, or don't know WTF they want to do, so they squander their first couple of years with no real direction, but keep partying it up like they're rich ballers on Student Loan money. Then drop out with $100g in debt.

I'd blame the parents/media that pushes higher education LONG before I'd blame the government. After all, the US is still a capitalist country.

EDIT:


You also have to realize, education in Canada for Canadians is HEAVILY subsidized by the government. As much as 70%. So that "$100g" education in Canada, really costs $300g+

i agree with a lot of the points you raise.

I also understand that Canadian education is highly subsidized, wand what im trying to say here is that the american government should do the same for its citizens. Americans are paying just as much in taxes, only difference is most of its is being squandered on their military and 3 wars rather than its future.

Originally posted by Super_Geo


I don't know where yousive schools (Harvard/MIT), for $400k I'm going to guess Harvard Medical? Whatever it is, it's definitely not for undergrad. Not everyone needs a $400k education.

In fact, I'm glad that the government chases down student loans... can you imagine how many more unemployed liberal arts grads there wouldd be if you could just borrow college tuition and then default on it as soon as you graduate and start with a clean slate?

Yeah debt is shitty, but so are people who don't pay them back. I don't care what their fucking circumstance is or what kind of a sob story they have... all I know is that they're a complete stranger to me, and because they borrowed more than they can pay back now the cost of borrowing goes up for everyone else.

im not saying people shouldn't be in debt after graduation, im saying the amount of debt should be REALISTIC. i have friends coming out of BU with an education cost of over 200,000 to become a teacher, to work for 40,000/yr (if they can find work)

If the loan amounts aren't as absurd as they are now, people would gladly pay the loans after graduation without defaulting (like many Canadians do).

[oupzwrongthread]

Originally posted by jaysas_63


wand what im trying to say here is that the american government should do the same for its citizens. Americans are paying just as much in taxes, only difference is most of its is being squandered on their military and 3 wars rather than its future.





im not saying people shouldn't be in debt after graduation, im saying the amount of debt should be REALISTIC. i have friends coming out of BU with an education cost of over 200,000 to become a teacher, to work for 40,000/yr (if they can find work)

If the loan amounts aren't as absurd as they are now, people would gladly pay the loans after graduation without defaulting (like many Canadians do).

I don't disagree with your points BUT

1. (Car analogy) Complaining about buying a lambo, knowing the price beforehand means you can not complain about it.
2. Americans pay less tax than Canadians
3. Sorry, but your friend at BU made a terrible decision if those numbers are true. Why would anyone knowingly go into this situation? He will be paying those off for 30 years.

I'm curious how you rationalize a 400k education? Where and what are you taking?

I think most people will agree -

1. Don't rack up ANY unsecured debt you can not payoff efficiently.
2. Do not complain postmortem when you knew, full well, what it would cost.
3. Free advice is always the best advice.

[clem24]

A few points I want to make...

I am glad the government is pushing education and all, but at the same time, if everyone has a university degree, then who's going to work at Tim Hortons? Higher education just isn't for everyone and that should be the case. If everyone who worked at Timmy's needs a degree, then we just have to pay them more and that in turns drives up the cost of everything, does it not?

Secondly, I think these days, it all depends on what you take after post secondary. I think 99% of bachelor degrees out there are useless by themselves. You need more than that. So go to med school. Or get an MBA. Or a professional designation. It's almost like the bachelor degree is just an extension of your high school diploma. I know I for one didn't feel any smarter holding my (useless) bachelor degree. And then there's really useless degrees like Phil (WTF), East Asian studies (double WTF), Tourism (WTFx3) and General Studies (WTFx10,000,000,000).

I hope people don't get the false hope that if they go to uni, they'll make millions when they're done, which is obviously what seems to be happening in the US. Then there's the scam for-profit post secondaries, which we don't even get into.. I think people are also forgetting too that they need drive and motivation to be even midly successful.

[oupzwrongthread]

Originally posted by clem24


I hope people don't get the false hope that if they go to uni, they'll make millions when they're done, which is obviously what seems to be happening

Most people are just temporarily inconvenienced millionaires. lol.

[thrasher22]

Its a common misconception that student loans can't be discharged by bankruptcy in Canada. They changed the law a few years ago, I believe you have to wait 6 years after graduation.

Not sure on the details, other than a close friend of mine had to declare bankruptcy last year because of old student loans.

[CapnCrunch]

Originally posted by jaysas_63

i have friends coming out of BU with an education cost of over 200,000 to become a teacher, to work for 40,000/yr (if they can find work)

I

We're they not told about these costs? Was the expected salary after graduation hidden from them?

I can't really feel sorry for someone who choses to do this to themselves.

[Zephyr]

Originally posted by CapnCrunch
It's a privilege, not a right.

LOL Really? Really?

Education is something everyone should have easy access to.

If you guys go look for a job in America, or Amurrica in some of the less educated parts, a bachelors degree is pretty much required everywhere that is a decent job. Unless flipping burgers or retail is your career path.

Let me ask those of you who are against higher education for everyone at a reasonable price. If everyone in the states were educated sufficiently, do you think we be in all these wars and economic disaster?

[jaysas_63]

Originally posted by oupzwrongthread


I don't disagree with your points BUT

1. (Car analogy) Complaining about buying a lambo, knowing the price beforehand means you can not complain about it.
2. Americans pay less tax than Canadians
3. Sorry, but your friend at BU made a terrible decision if those numbers are true. Why would anyone knowingly go into this situation? He will be paying those off for 30 years.

I'm curious how you rationalize a 400k education? Where and what are you taking?

I think most people will agree -

1. Don't rack up ANY unsecured debt you can not payoff efficiently.
2. Do not complain postmortem when you knew, full well, what it would cost.
3. Free advice is always the best advice.

to answer a few of your points:

my colleagues in the states are paying close to 36% tax, very similar to someone in the same tax bracket in Canada would pay. the fact that Americans pay less taxes than Canadians is a misnomer.

why would somebody go to university to become a teacher? you are absolutely right. the US has made it a ridiculous decision to become a teacher. that's one of the reasons why the school system here is so fucked up. NOBODY with a right mind would want to become a teacher....scary that one of the most important jobs is so undervalued eh??

im studying a graduate degree in the healthcare industry. i can rationalize this education because its costing me nothing, and my parents pay for the whole bill. It is what i want to do, so i am doing it. I have the ability to choose to do what i want, without the repercussions of being enslaved by debt. It is sad that in a country like the US, only a minority of people have that convenience. we ALL should have equal access to education. it is NOT something that should only be reserved for the upper class, rather higher education should be reserved for those with the passion, intelligence, and dedication.

Originally posted by CapnCrunch


We're they not told about these costs? Was the expected salary after graduation hidden from them?

I can't really feel sorry for someone who choses to do this to themselves.

so are you proposing that somebody that has the ability to become an amazing surgeon, scientist, economist etc, should not be able to work to his full potential because of the costs?? i sure hope the person who has the potential to cure AIDS also has a rich daddy.