I have been reading about college graduates who have enormous student loans. Today I read
one about a man who went to a top school and graduated in art. He has made $20000 a year for the past two years. His stuent loan payments are equal to his monthly income. Obviously he cannot pay the payment.
Should his wages be garnished at 100% to pay this loan? I am curious to find out what y'all think about this. He is not the only one.
Well, there are ways to lower your student loans so that you will not have much debt. You can double up on classes and take advantage of straight rates or find ways to fund your schooling like grants and scholarships. A degree in Art is kind of a joke and anyone who does so, is setting theirselves up for failure. Each state has garnishment rules that will not allow all of their pay to be garnished, however the debt should be paid. It is hard to feel bad for someone who knowingly took a degree that has little to no chance of a high paying job out of it.
What about jobs that are not traditionally high paying but are very needed - i.e. teachers and social workers? No degree no job. Degree low paying job. Thoughts?
EllieBee--- I think the teachers unions have the public under their thumb here. The average teacher salary here in California exceeds $80,000 for nine months. Loans for teachers can be largely forgiven for teaching in disadvantaged areas.
Kaiyan--what would you say about a dentist with $315000 of loans with $2400 a month of payments? Or a doctor with $500000 of loans with $4000 a month of payments? What if neither of them could make their payments?
Should there be limits on borrowing for everyone?
I think that may be a step that needs to be taken. There are billions of dollars in student loans that are already in default and maybe there should be a cap. I will have earned a Masters for under 30k, which is still quite a lot. But, we as stude
The total student loan liability nationwide is now about 1 trillion dollars. I am not interested in necessarily garninshing wages. However we need to revist the economics of why this is. Student loans for years were subsidized by the gov't and now largely issued directly by the gov't. College is a business. They know full well that students have access to resources well beyond their collateral. As a result they keep pushing up tuition. Who wouldn't raise prices if the gov't was financing the consumer to unreasonable levels. The gov't needs to get out of the student loan business. Trust me, colleges won't close their doors because students can't borrow money to attend. They'll drop tuition dramatically. As of now there is little reason for them to compete from a cost perspective. This is very much like the causes of the housing crisis. Gov't subsidizing debts for people who have little ability to pay.
Many of these schools are strapped for money however the economy hasn't recovered enough to offer these graduates the higher wages that are supposed to come along with these degrees. There are so many people competing for jobs that it is an employers market and until this changes, the income level of a college graduate will be lower. I believe in getting a degree because it will give you an edge when competing for jobs against people with no degree. Government needs to stop raising taxes and reform itself to cut out what is absolutely not necessary. Unfortunately this will mean layoffs fo some of the official in our government and when it means their jobs it seems nothing gets done.
Sadly, I believe we are all in trouble. No matter your income level or ability to earn, most people are strapped with educational loans. While there are those who may be take advantage of the system using using loans that are not proportionate to the education received, most just want/need an education. Personally, I believe that a bachelors degree is essentially compulsory nowadays and should be covered for everyone. My first child just graduated with his bachelors two months ago. I have been strapped with a $300 loan payment per month and he faces paying back another $45,000. I am aware that many people owe quite a bit more, I am just concerned by the cost of an education. It seems to me that we would want our children to be educated, to be able to be and do more. So why does it have to be so cost prohibitive?
Speaking from personal experience (I have way too much student loan debt), I feel the best way to prevent the college loan debt issue for future generations is financial education. I wish managing finances was apart of the curriculum for high school seniors and college freshman. While parents are responsible for helping their kids understand the pros and cons of taking out student loans, many times parents will do a half ass job of teaching their kids about why they should and shouldn't do certain things. I unfortunately chose not to listen to my father who vaguely explained why I shouldn't have gone to the private University I choose to attend. Even though it would be great if college (both public and private universities) were cheaper or better yet free, it would do more good educating young adults about the pro's and CON's of taking out loans (especially private loans). Had I had a reputable professional sit down with me and do the math, I would have listened and probably wouldn't have gotten myself in so much debt. I think financial education starting at a young age is key here. There is too much vague information about Federal Loans, Private Loans, and going to college in general. I honestly didn't need to go to college for the career I wanted to pursue but I went because it was beat into my head by parents, teachers, and society that receiving a college education is a major stepping stone to success and that is NOT the case for many professionals. (Teachers and Doctors not included obviously).
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