Or maybe we should have a system where when we leave higher education we don't have to leave our friends and family behind to work in a city we don't want to live in for years in order to justify crippling debt. Have some compassion.
This is true and was also true in the the past. Practicing dentistry won't make you rich. This is why you see a lot of dentists, who graduated 30+ years ago and are in their late 50s/early 60s, are still working to save for their retirements. If you just do dentistry and don’t invest your money in anything, that'll help you earn passive income later on, you will end up retiring with just a house, which you should be able to pay off, a car…and nothing else.
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And social security, if it’s still solvent. If it is, that could be anywhere between $1,000 to $6,000 a month in future money. The current maximum is about $3,500 a month - for six figure income earners at age 70 and with 35 years work history.
If social security will still exist when I retire.....but I wouldn’t count on the government to help with my retirement. The government is never good at managing anything. It’s always better to do everything that you can to help yourself and your family while you are still young and healthy. $3500/month is definitely better than nothing but I need a lot more than that. My property tax alone is $2000/month. Even if I downgrade to live in a $700k condo here in CA, it will still be almost $1000/month because I will have to pay other expenses such as HOA fees + maintenances.
Never understood these insane expenses on the coast cities. I live in new 3,000 sft home in a downtown with a 15 years tax abatement (0 real estates taxes) - and prices increase every year. HOA is about $200 a month. Drive to work is less than 10 mins. People are way nicer, 4 seasons weather, food scene is way better and less saturated for dentists. Anyways, with SALT taxes being capped, there is mass exodus of people leaving New York, Washington and California... over 60,000 people are moving from New York to Florida alone every year.
Not wanting a system where every single adult berates you your entire life about how you have to go to college and you go, are crippled with life long compounding debt, can't get married, can't have kids, can't buy a home, etc. and are then told to leave your friends and family behind to move to some city you have no desire to live in for years just to make a dent in your debt is somehow entitlement? Wrap your mind around $1.7 trillion in educational debt. Your lack of empathy is mind boggling.
Because I'm an American, and I believe the country should do what's best for Americans. When my neighbor's house burns down, my tax dollars go to the fire department who will put it out, and I'm happy about that. I could be mad our taxes go to roads I don't drive on or the police when I don't commit crimes, but I'm glad they go to those things because I care about my country. I believe my generation, who now is chained with $1.7 trillion (you read that right) in educational debt was owed a better path. Something is wrong here. Why do you not care about your struggling fellow Americans? When you see your generation collectively drowning in debt, you realize they were owed something better.
Please go see my previous posts explaining this.
Again, see my previous posts. The debt was resulted from kids who trusted their elders who all told them an education would lead them to a bright future. They thought they were framing their futures, instead they got riddled with debt and a salary that doesn't justify it. When an entire generation was so clearly effected, maybe there's more too it than just scoffing at them for "entitlement".
Are you entitled to the fire department coming when your house burns down, the police coming when you're being robbed, or roads being paved? In America, a country where the government is suppose to care about its people, of course you are. If kids, with no work experience or concept of money are enslaved by debt, then that will decimate our country. There's more people out there than just you. Perhaps its time to stop looking at fellow Americans as dollar signs and view them as extended family. If you do that, you'll see that my generation having $1.7 trillion in educational debt is an absolute abomination. Schools shouldn't be entitled to charge their financially illiterate students ~100k a year and raise tuition 10% just because they can. That's the real entitlement problem.
My point is that we are paying for other people, many of whom are less fortunate and pay little in taxes, to use services so we can function as a society. That's a good thing. They are entitled to these services because they are Americans. Period. Functioning societies have governments that help take care of their people. If they don't, what's the point of having a government? My point is, the government needs to step in and put an end to this student loan madness in order to save our generation.
I don't know what you're talking about. I believe the government should order colleges to cosign their student loans so that if a student goes in default, the universities have to pay. That's the only way, in my opinion, loans are moral when both people are on the hook. Another solution would be having the government cap how much a school can charge and how much they can raise tuition. I haven't asked for anyone to pay for anything. This will actually be cheaper as there will be less government forgiveness so tax dollars won't be needed to pay for people like Mike Meru's loans, around one million of which the tax payers pay for. It's honestly amazing the current system is even legal.
You don't understand what I'm saying. I agree. If the universities are on the hook for paying for defaults you know what they'll do? Lower prices. Once the universities have skin in the game, they'll have to lower prices. They'd rather use their money to pay their overpaid administrators rather than burn it to pay for defaults. It's not about having the government grants pay for it. It's about lowering the prices. What's hard to get about that? You also don't understand what will happen to the economy when an entire generation cannot have children because of debt. If we have an entire generation that can't pay for anything and lose our middle class, we're in trouble economically. If we don't fix this mess, our entire country will be hurt.
That’s the problem in this country. Tax payers have always been let down by bad leadership that the majority have elected. A leadership (President and Congress) that did not do everything in their power to do what’s best for the tax payers. You can be a proud tax payer, but were you ok with your money being used to bail out banks that caused the 2008 recession? What about when your taxes was spent in wars that were proven to be unnecessary? How about on building a wall on the Mexico border? The point is - tax payers money going to for-profit and state schools did not come with good checks and balances, just like almost everything else the government does with the tax money. So yes, the student default will get worse and one way or the other, this whole debt crisis will reach a tipping point and crash - at the expense of the tax payers. We have shot ourselves in the foot before, and when the bubble bursts on student loans - we will shoot ourselves in the foot again.
I agree. Dentists in 500k debt absolutely should go to areas where they'll receive a higher salary to pay off their debt. What I'm saying is the system shouldn't exist where the only way to justify the cost of higher education is to go some rural place you have no desire to live in. I don't think wanting to reform a corrupt system is entitlement. In fact, it will cost the tax payer less as fewer people will default on loans.
I believe the government getting involved in ending the predatory borrower-lender relationship falls under maintaining order. The fire here is insurmountable student loan debt, and the government can stop it from spreading. I don't believe people in this country should be allowed to just do whatever they want under the auspices of freedom. If they could, why can't you sell your own organs or shoot heroine? The fact of the matter is those degrade you and harm you and have greater ramifications on society as a whole. In the same way, allowing naive students to en masse fall pray to mountains of student loan debt that will hold them back from buying a car, get married, etc, should not be permitted as they destroy their lives and will affect society as a whole.
This is key. While I respectfully disagree with you on many of the other details, I think most of us understand free money is how prices have soared the way they have.
I'm not a socialist. I don't believe people are entitled to free housing, free college, etc. But, as you said, the government needs to be there to maintain social stability. Well, when an entire generation of students fall pray to corrupt lenders and are crippled for the rest of their lives, we need the government to come in and stop it as it will have ramifications on the entire country. Moreover, I don't believe I'm being "alarmist". There's a reason this is called the student loan "crisis" on the news. It's because it is a legitimate crisis. There is $1.7 trillion of student loan debt for goodness sake.
I disagree, because most who should be going to underserved areas do not and will rely on government forgiveness programs. In theory, I wish everyone who went to NYU went to rural Kansas. Practically, most won't. Even those who eventually pay their loans without forgiveness will probably have fewer if, any children. I view that as a net negative for society.
When an entire generation is drowning in debt and cannot have kids, I view that as destroying society. I'll give you a real life example. Many states have wisely banned or limited pay day loans. Why? Because studies show they target the young and poor and destroy their lives. I think the federal government needs to step in and do something about the predatory student loans like state government's did with payday loans. I don't care if desperate people lose the "freedom" to take out loans with a 300% interest rate just like I don't care if they lose the freedom to shoot heroine. At the end of the day, society is greater by eliminating this.
My family lived in communist Eastern Europe. I know what socialism is and asking the government to step in when a vulnerable class of people are being taken advantage of isn't it. I'm not asking for total loan forgiveness or college being free. I'm generally in favor of total freedom for people. However, when an entire generation collectively has $1.7 trillion in education debt and growing, it's time for the government to step in. Again, not asking for loan forgiveness or free college. Just make the lender-borrower relationship between students and colleges fair. Teddy Roosevelt busted trusts for the benefit of the economy and society to combat corporate concentration. The government stepping in to stop the student loan crisis is certainly within their purview.
2019 GDP By Country in US $.
IBR is not going anywhere, and in fact - there are bills in Congress which aim to expand it or be similar to IBR. IBR is a big business, it allows the debt servicers to shackle borrowers with more debt for longer period of time, so they will continue to lobby for it at all cost. So young new grads will continue to flow into urban areas and saturate existing markets even more. There is no strong incentive for them to live in rural areas - so many will have to settle for carrying their student loans for 30+ years, essentially until they retire or beyond retirement. I personally know dentists who are still paying their student loans from 25+ years ago - not common, but they are out there. So, the ball and chain will be even bigger for today’s pre-dents when they finish DS.
