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You heard someone on TV say student loans are “good debt” that pays for your education and usually carries low interest. Go or no-go?

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No go
Posted by Briana ·

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Regeniu$ posted:

College is becoming a racket. Our young citizens think they are too good to do the dirty jobs—so they acquire a fortune in college debt, then think they should come out of college making the same salary as a 25 year veteran of fill-in-the-blank-profession. Their starting wage is high... because they need incentive to work, which leaves no money in the budget for experienced professionals to receive a merit raise. 

It is becoming more common for people to not be able to find the job they think they need after a college diploma. The undergraduate degree is being devalued—it’s not enough education to land a good job anymore. Enter graduate school and more debt. Before you know it, 10 years in school and tons of debt—which may be forfeited, causing tuition to rise, causing debt to rise... vicious cycle.

Then the person in school for 10 years gets a higher wage than the person actually on the job who “invented the wheel,” in the first place.

Two years of trade school and an individual can make more in the first year than a highly skilled laboratory research professional of 20 years. It is quite disheartening.

If people were not willing to pay so much for “education,” they would be much more wealthy in  the long run. This concept, however, requires common sense, which unfortunately, is greatly lacking in today’s society—and cannot be purchased for any amount.

Bless our hearts. 🙄

And the job listings put there are insulting ..amazon requires a bachelor's for a CSR position that pay $13 per hour? Entry level everything requires degrees and/or experience? Some places would like a master's before they will hire you for $10

Who can afford to rack up all that debt and think they can pay it and support themselves on barely over min wage. 

Student loans are both good and bad.  They help you get an education, when you probably wouldn't be able to pay for it, but paying them back can go on endlessly.  If you do have student loans, the quicker you can get them paid back, the better off you are.

student loan can be a set back to take on other things that you would want to in life but if it wasnt for student loan maybe i wouldnt have received my college education. its not altogether bad but something to really think about before using it for your college education. 

No debt is good debt.  Some are better and there is some truth to the lower rates for ED loans.  I see people drowning in ED debt and some can't qualify for mortgage. Best to get 2 year degree then go for remaining years as needed. Try and do part time work while at school to cut amount needed.  

Reasonable car debt so you can work is better debt.  Poor debt is charge cards of any form. There should be a class on financial needs (and not just stick or insurance finances).  

My daughter a recent university graduate, received grants and worked full-time during college. However, she was still forced to take out a minimal amount of student loans. Technical and Trade school take advantage, by inflating the cost/fees and pressuring their students to take out excessive loans.

 

 

The interest rates we are paying for our daughters' loans are not low, and they add up quickly. I say no-go and wish I had explored a few other options before getting in such deep debt.

College is becoming a racket. Our young citizens think they are too good to do the dirty jobs—so they acquire a fortune in college debt, then think they should come out of college making the same salary as a 25 year veteran of fill-in-the-blank-profession. Their starting wage is high... because they need incentive to work, which leaves no money in the budget for experienced professionals to receive a merit raise. 

It is becoming more common for people to not be able to find the job they think they need after a college diploma. The undergraduate degree is being devalued—it’s not enough education to land a good job anymore. Enter graduate school and more debt. Before you know it, 10 years in school and tons of debt—which may be forfeited, causing tuition to rise, causing debt to rise... vicious cycle.

Then the person in school for 10 years gets a higher wage than the person actually on the job who “invented the wheel,” in the first place.

Two years of trade school and an individual can make more in the first year than a highly skilled laboratory research professional of 20 years. It is quite disheartening.

If people were not willing to pay so much for “education,” they would be much more wealthy in  the long run. This concept, however, requires common sense, which unfortunately, is greatly lacking in today’s society—and cannot be purchased for any amount.

Bless our hearts. 🙄

You should do your homework and check things out before doing something you heard specially off of the tv. Student loan is either go or no-go depending on the person and their situation.

I don't go with something just because someone said it's a good idea.  Depends on the circumstances.  Is the person looking to get a job in a higher marketable field?  Student loans MIGHT be a good idea.  Are they looking to get an education in a field that isn't hiring or hard to break into? Student loans MIGHT be a nightmare.

Bottom line: you have to go into them with the idea that you'll need to find the money to repay them.  They cannot be bankrupted here in the States. 

My first order of business would be to see what grants and scholarships I would qualify for BEFORE taking out debt.  5% or 50% doesn't matter in interest if you find yourself in a position where you cannot pay them back.  Broke is broke.

Go, with a great big ... It depends.  In essence, a student loan is just another investment with an expected return.  Whether it's a good investment / good debt depends on what the overall return is.  There is a HUGE difference between financing an expensive education in something that does not have good market value vs one that does.   And then one needs to compare many alternatives to determine the best course of action.

In general, hearing advice from one source is not good enough to make a decision.  If I would hear that on TV and would be intrigued, I would do research before engaging.  

As an aside, it's frustrating that in the US education can be very expensive.  It should rarely be something that's contingent on one's finances.  What's happened in the US is a higher education system that rewards wealth over intelligence, drive, creative problem solving and grit.  

If you want an education and don’t have rich parents, student loans are the way to go, as long as you are the type of person who pays their debts and are dedicated to getting your degree.  The interest rate is typically much lower than other credit and they work with you if you’re going through a rough spot.  I have three kids with student loan debt and one is going back to get her RN on an accelerated program. She’s been paying her loans down since the first payment was due and once she gets a good job, she’ll pay them off. All of my kids have excellent credit and do not expect the government to forgive their debt. My son, who didn’t finish college, recently paid his student loans off and my other child is working on hers. I have student loans as well and I find the people at Fed Loan Servicing and Aspire incredibly easy to work with.

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