It's NOT ABOUT the student looking at the interest rate as a make-or break decision, although the difference in total cost over the life of the loan is about the same as buying a house...and people DO pay attention to that. Buying a house at 3% vs 6% can save hundreds of thousands of dollars, and you sell people short...(imagine my surprise)...if you think they don't factor that in...
And in the meantime, there is twice as much money in the program to loan to twice as many people...
LadyJazzer wrote: It's NOT ABOUT the student looking at the interest rate as a make-or break decision, although the difference in total cost over the life of the loan is about the same as buying a house...and people DO pay attention to that. Buying a house at 3% vs 6% can save hundreds of thousands of dollars, and you sell people short...(imagine my surprise)...if you think they don't factor that in...
And in the meantime, there is twice as much money in the program to loan to twice as many people...
But you knew that...
I really hope with your economic knowledge that you let someone else manage your money.
And with increasing tuition rates they are adding 10% per year to their loan balances. 3% savings in interest means they are falling behind, like the Americans who lost thousands in personal wealth since Obama was elected.
Thomas Sowell: There are no solutions, just trade-offs.
LadyJazzer wrote: It's NOT ABOUT the student looking at the interest rate as a make-or break decision, although the difference in total cost over the life of the loan is about the same as buying a house...and people DO pay attention to that. Buying a house at 3% vs 6% can save hundreds of thousands of dollars, and you sell people short...(imagine my surprise)...if you think they don't factor that in...
And in the meantime, there is twice as much money in the program to loan to twice as many people...
But you knew that...
And what happens when the house you buy and all similar houses are actually over-valued? What happens is the bubble will eventually burst and it reallly doesn't matter how low the interest rate is. But you knew that...
The left is angry because they are now being judged by the content of their character and not by the color of their skin.
And who cares if the interest rate is 3% or 6% when you have overpayed by 50% because everyone and their brother went to school on goverment loans and very few of you can find jobs to repay those loans.
Good comparison above to the mortgage bubble. When you make money free or close to it, the asset rises in price. Often to unsustainable levels. For example people paying 250K in tuition and loans to get a job as a social worker that pays 25K a year.
Suppose goverment hadn't pushed everyone into going to college and people would instead being paying 100K to get that same degree.
Ever seen an opportunity chart comparing job payouts to investment of time and money. The ones that show a plumber with a 2 year degree coming out ahead of a potter with a Masters in Fine Arts? It will get even more skewed with the increases in college tuition.
Thomas Sowell: There are no solutions, just trade-offs.
It's about getting those kids into the debt system. Go on a college campus sometime and see how many CC companies have tables set up there to give away CC's. Get them into debt early and they will be slaves to it.
When you plant ice you're going to harvest wind. - Robert Hunter
It's breathtaking to see the clueless Righties arguing for America to race-to-the-bottom...and then bitch about it when jobs go elsewhere because the population is better educated in at least 30 other countries. And the race-to-the-bottom covers education, salaries, benefits, retirement...
PLEASE... Secede and leave at your earliest opportunity...
Getting an education isn't just about getting a job.....it's about learning....and growing as an individual. It's about becoming a better person and citizen. And, it certainly shouldn't be reserved simply for those who can afford it without a college loan, or those who are in the top 20% of their high school class....education needs to be available to ANYONE who desires it and is willing to work hard to get educated and better themselves both intellectually, personally, and then financially.
Jobs going elsewhere because our population isn't educated enough? How many people with college degress are you seeing working as baristas? I was talking a couple weeks ago to a guy with a degree in IT who was working as a Home Depot cashier. And the next batch of grads will be paying twice as much to become coffee mixers after getting degrees in Biodiversity.
Thomas Sowell: There are no solutions, just trade-offs.
archer wrote: Getting an education isn't just about getting a job.....it's about learning....and growing as an individual. It's about becoming a better person and citizen. And, it certainly shouldn't be reserved simply for those who can afford it without a college loan, or those who are in the top 20% of their high school class....education needs to be available to ANYONE who desires it and is willing to work hard to get educated and better themselves both intellectually, personally, and then financially.
No meritocracy for Archer huh? Bottom 10% of your high school class? Who cares, give them a Pell Grant, let the taxpayers pay for it. Even if it is a waste and we don't need another western civilization dropout.
And who cares that they are paying twice the rate as 10 years ago.
Thomas Sowell: There are no solutions, just trade-offs.
I really hope with your economic knowledge that you let someone else manage your money.
