Only 40% Of Fed Student Loan Borrowers Are Paying

They are the government and they are here to help!

I was fortunate enough not to have any loans and still don’t. The interest on them is outrageous.

Here’s an interesting question: Do you consider education to be a public good? or a commodity to be sold and purchased?

People are not entitled to anything, period. You are entitled to die, that is about it, even birth is no longer an entitlement. Everything in between is and should be earned. Is only as it should be, not as government aid makes it.

I have no issue with loans, its business, but they should be paid back, as good business. You enter into an agreement with someone that is your word. Your word is who you are. If you falter on your word you are no longer worthy of trust. People pick up second and third jobs all the time to make ends meet, its about drive and being willing to work.

I do think that they should drop the bulk of the majors available in college. Basket-weaving, really? How about Archaeology, Paleontology? Cool majors, not much of a job market. Find a way to make it a masters, PhD to limit the pools of people that come out with useless 4 year degrees (see many liberal arts majors).

Encourage people to trade schools, or apprenticeship instead of just college. Teach financing in high school, how to balance a checkbook, understanding interest, compounding, etc.

Encourage the military for those without direction. The military will change people and help them grow up - many countries require some service.

Point is, people assume college is needed. Parents aren’t guiding their kids or putting in the time they should. Kids aren’t learning what they need when they need it, and by the time they do, they are under water already. Living with Benjamins is not the way its supposed to be, there would be far less “rich” people if people learned to live within their means.

[quote]Quasi-Tech wrote:
People are not entitled to anything, period. You are entitled to die, that is about it, even birth is no longer an entitlement. Everything in between is and should be earned. Is only as it should be, not as government aid makes it.

I have no issue with loans, its business, but they should be paid back, as good business. You enter into an agreement with someone that is your word. Your word is who you are. If you falter on your word you are no longer worthy of trust. People pick up second and third jobs all the time to make ends meet, its about drive and being willing to work.

I do think that they should drop the bulk of the majors available in college. Basket-weaving, really? How about Archaeology, Paleontology? Cool majors, not much of a job market. Find a way to make it a masters, PhD to limit the pools of people that come out with useless 4 year degrees (see many liberal arts majors).

Encourage people to trade schools, or apprenticeship instead of just college. Teach financing in high school, how to balance a checkbook, understanding interest, compounding, etc.

Encourage the military for those without direction. The military will change people and help them grow up - many countries require some service.

Point is, people assume college is needed. Parents aren’t guiding their kids or putting in the time they should. Kids aren’t learning what they need when they need it, and by the time they do, they are under water already. Living with Benjamins is not the way its supposed to be, there would be far less “rich” people if people learned to live within their means.[/quote]

I think I love you…

My debt is hanging over my head but I am current. I even pay a little extra.
As far as student loans…Do you think the relative ease of getting student loans is what caused the meteoric rise in education costs?

Jeaton, I’ll be running for office in 2016… I’ll appreciate your vote.

The inflation of costs is greatly driven by two factors: greed and the government.

I went to a private school that did not accept government aid, one of the lowest cost schools in the nation and still got a quality engineering education. Why was their cost so low? They didn’t accept government aid.

Just as everything else, when you get in bed with the government, they now own you. Because schools accept government aid, said government can influence the costs, the rise in cost, etc. of said schools. Most schools in this country accept government aid. It’s a twisted, screwed up reality but it is what it is. The government gives schools aid to help them out, gives students aid to go to school, but only as a clever ploy to suck more funds out of those same students later.

[quote]phaethon wrote:

[quote]H factor wrote:
Waittz: I like it. No one forces you to go to school. No one forces you to buy a car. No one forces you to buy a house. You borrow money from someone pay it off.
[/quote]

If you lend some schmuck a large sum of money when they have no means of paying it off… more fool you. Unfortunately, because the government is doing it… more fool all of us.[/quote]

This is usually the case except for the federal government has more means to collect than the typical lender. Why would you not issue a loan that HAS to be repaid? Unless these nonpayers are planning on being jobless the rest of their lives the government will get their money.

[quote]Waittz wrote:
I dont have any sympathy or respect for someone not paying or trying to default on their student loan. You borrow money, from the government no less, spent it freely on what you needed it for knowing that it would need to be paid back and with interest. Nobody forced you to do it, nobody tricked you and you have an obligation to pay it back.

Any excuse for not, is just an excuse. You should not borrow such a large amount, knowing the risks and amount of leverage you are putting yourself in if you do not have a plan or confidence to pay it back. Blaming circumstance, others or enviornment is just an excuse and an abdication of responsibility.

This last part is soley annecdotal but I have encounted a few people who are having huge issues with paying back or managing the debt from student loans(one im related to and offering financial coaching to). The same people bitch about the goverments debt, corporate bailouts and companies using chapter 11 to avoid paying obligations while CEO’s still collect a paycheck. Never do they see the hypocrasy.

Keep in mind I am 4 years removed from college and I will have my student loans paid off in full this November. I made sacrifices to pay them off as fast as I could because I was raised to fulfill my obligations that are self imposed. I actually had to borrow almost 5K from my father when I was 16. It took me 3 years, and despite my father being very wealthy and I working low paying jobs while in school, I paid back every cent. The only reason I had to take student loans in the first place was because I failed out of school, lost my scholarship and had to borrow to get back in and pay for everything since I didnt make enough and didnt want to wait longer to slowly get my degree. On top of 15k+ loans I racked up 10k+ in CC debt for the rest and some bad decisions(havent carried a balance on my cards ever since paying it off).

I NEVER once blamed anyone but myself for the circumstances that lead to my debts and NEVER once asked for help or forgiveness on them or gave an excuse as to why I shouldnt have to pay it back.[/quote]

If you don’t mind me asking, why did it take so long? Was it a 5 year loan or was that a budgeting decision? The reason I ask is because 25k isn’t really a lot of debt, especially considering that you are doing so well.

You don’t have to answer, I’m just curious.

[quote]CroatianRage wrote:

[quote]Waittz wrote:
I dont have any sympathy or respect for someone not paying or trying to default on their student loan. You borrow money, from the government no less, spent it freely on what you needed it for knowing that it would need to be paid back and with interest. Nobody forced you to do it, nobody tricked you and you have an obligation to pay it back.

Any excuse for not, is just an excuse. You should not borrow such a large amount, knowing the risks and amount of leverage you are putting yourself in if you do not have a plan or confidence to pay it back. Blaming circumstance, others or enviornment is just an excuse and an abdication of responsibility.

This last part is soley annecdotal but I have encounted a few people who are having huge issues with paying back or managing the debt from student loans(one im related to and offering financial coaching to). The same people bitch about the goverments debt, corporate bailouts and companies using chapter 11 to avoid paying obligations while CEO’s still collect a paycheck. Never do they see the hypocrasy.

Keep in mind I am 4 years removed from college and I will have my student loans paid off in full this November. I made sacrifices to pay them off as fast as I could because I was raised to fulfill my obligations that are self imposed. I actually had to borrow almost 5K from my father when I was 16. It took me 3 years, and despite my father being very wealthy and I working low paying jobs while in school, I paid back every cent. The only reason I had to take student loans in the first place was because I failed out of school, lost my scholarship and had to borrow to get back in and pay for everything since I didnt make enough and didnt want to wait longer to slowly get my degree. On top of 15k+ loans I racked up 10k+ in CC debt for the rest and some bad decisions(havent carried a balance on my cards ever since paying it off).

I NEVER once blamed anyone but myself for the circumstances that lead to my debts and NEVER once asked for help or forgiveness on them or gave an excuse as to why I shouldnt have to pay it back.[/quote]

If you don’t mind me asking, why did it take so long? Was it a 5 year loan or was that a budgeting decision? The reason I ask is because 25k isn’t really a lot of debt, especially considering that you are doing so well.

You don’t have to answer, I’m just curious.
[/quote]

I do not mind at all and it is a very good question. It is a combination of things.

I have been out of school for 4 years. The first two years I made 40-50k a year and had little to no financial IQ. I paid my minimun payment plus 50$ each month just out of habbit.

Year 3 I read maybe 50-75 books and listening to who knows how many audiotapes on business, finance, personal developement, investment, monitary systems and currency.

Year 4 was when I started to crack 6 figures. Between years 3-4(the past two years) I paid them agressively but only to the tune of my budgeting(which i know doesnt fully answer).

I beleive strongly in paying yourself first, everyone else secondly. I bought a house when the market bottomed out, paid off my short term debt(cc’s) started an investment fund, bought some physical silver/gold(mainly silver for reasons I wont go into) for protection, set up enough savings for emergencies. THEN i started to pay things off hard and agressive, while still enjoying my life(i believe if you do not spend your money or give away to charity freely it will stop flowing back to you). Hoarding money isnt good. Is you live like a miser to save for a rainy day, make sure you are not suprised when it floods.

So now I am at the point where 4.5 years removed I will be done, have a house with lots of equity now, a large seedling for retirement, rainy day money and a nice car/clothes etc. So that isnt a long time, considering it was only really 2 years of doing well and knowing what I was doing. That and this is still my first year in the 6 figs, despite pacing to make more money this year than the past 2.5 combined.

ALSO, 25K is a decent amount of money when you consider you are paying it off with after tax dollars. It is more like 35k of earnings. If you save 10% of your net take home each year, at 100k salary it would take you over 2 years to save that much.

That was much larger than I thought it would be…

[quote]Waittz wrote:

[quote]CroatianRage wrote:

[quote]Waittz wrote:
I dont have any sympathy or respect for someone not paying or trying to default on their student loan. You borrow money, from the government no less, spent it freely on what you needed it for knowing that it would need to be paid back and with interest. Nobody forced you to do it, nobody tricked you and you have an obligation to pay it back.

Any excuse for not, is just an excuse. You should not borrow such a large amount, knowing the risks and amount of leverage you are putting yourself in if you do not have a plan or confidence to pay it back. Blaming circumstance, others or enviornment is just an excuse and an abdication of responsibility.

This last part is soley annecdotal but I have encounted a few people who are having huge issues with paying back or managing the debt from student loans(one im related to and offering financial coaching to). The same people bitch about the goverments debt, corporate bailouts and companies using chapter 11 to avoid paying obligations while CEO’s still collect a paycheck. Never do they see the hypocrasy.

Keep in mind I am 4 years removed from college and I will have my student loans paid off in full this November. I made sacrifices to pay them off as fast as I could because I was raised to fulfill my obligations that are self imposed. I actually had to borrow almost 5K from my father when I was 16. It took me 3 years, and despite my father being very wealthy and I working low paying jobs while in school, I paid back every cent. The only reason I had to take student loans in the first place was because I failed out of school, lost my scholarship and had to borrow to get back in and pay for everything since I didnt make enough and didnt want to wait longer to slowly get my degree. On top of 15k+ loans I racked up 10k+ in CC debt for the rest and some bad decisions(havent carried a balance on my cards ever since paying it off).

I NEVER once blamed anyone but myself for the circumstances that lead to my debts and NEVER once asked for help or forgiveness on them or gave an excuse as to why I shouldnt have to pay it back.[/quote]

If you don’t mind me asking, why did it take so long? Was it a 5 year loan or was that a budgeting decision? The reason I ask is because 25k isn’t really a lot of debt, especially considering that you are doing so well.

You don’t have to answer, I’m just curious.
[/quote]

I do not mind at all and it is a very good question. It is a combination of things.

I have been out of school for 4 years. The first two years I made 40-50k a year and had little to no financial IQ. I paid my minimun payment plus 50$ each month just out of habbit.

Year 3 I read maybe 50-75 books and listening to who knows how many audiotapes on business, finance, personal developement, investment, monitary systems and currency.

Year 4 was when I started to crack 6 figures. Between years 3-4(the past two years) I paid them agressively but only to the tune of my budgeting(which i know doesnt fully answer).

I beleive strongly in paying yourself first, everyone else secondly. I bought a house when the market bottomed out, paid off my short term debt(cc’s) started an investment fund, bought some physical silver/gold(mainly silver for reasons I wont go into) for protection, set up enough savings for emergencies. THEN i started to pay things off hard and agressive, while still enjoying my life(i believe if you do not spend your money or give away to charity freely it will stop flowing back to you). Hoarding money isnt good. Is you live like a miser to save for a rainy day, make sure you are not suprised when it floods.

So now I am at the point where 4.5 years removed I will be done, have a house with lots of equity now, a large seedling for retirement, rainy day money and a nice car/clothes etc. So that isnt a long time, considering it was only really 2 years of doing well and knowing what I was doing. That and this is still my first year in the 6 figs, despite pacing to make more money this year than the past 2.5 combined.

ALSO, 25K is a decent amount of money when you consider you are paying it off with after tax dollars. It is more like 35k of earnings. If you save 10% of your net take home each year, at 100k salary it would take you over 2 years to save that much.

That was much larger than I thought it would be… [/quote]

Thank you. I misspoke saying 25k wasn’t much as it certainly is. It is obvious that I take a different approach to things than you do, maybe out of necessity as I am far more in debt than you were. Either way, I anticipate paying 50% plus towards my debts before accruing any sort of assets. I’ve said it before and I’ll say it again, personal finance is just that, personal.

Either way, you seem like a really good guy and have a beautiful fiance.

[quote]CroatianRage wrote:

[quote]Waittz wrote:

[quote]CroatianRage wrote:

[quote]Waittz wrote:
I dont have any sympathy or respect for someone not paying or trying to default on their student loan. You borrow money, from the government no less, spent it freely on what you needed it for knowing that it would need to be paid back and with interest. Nobody forced you to do it, nobody tricked you and you have an obligation to pay it back.

Any excuse for not, is just an excuse. You should not borrow such a large amount, knowing the risks and amount of leverage you are putting yourself in if you do not have a plan or confidence to pay it back. Blaming circumstance, others or enviornment is just an excuse and an abdication of responsibility.

This last part is soley annecdotal but I have encounted a few people who are having huge issues with paying back or managing the debt from student loans(one im related to and offering financial coaching to). The same people bitch about the goverments debt, corporate bailouts and companies using chapter 11 to avoid paying obligations while CEO’s still collect a paycheck. Never do they see the hypocrasy.

Keep in mind I am 4 years removed from college and I will have my student loans paid off in full this November. I made sacrifices to pay them off as fast as I could because I was raised to fulfill my obligations that are self imposed. I actually had to borrow almost 5K from my father when I was 16. It took me 3 years, and despite my father being very wealthy and I working low paying jobs while in school, I paid back every cent. The only reason I had to take student loans in the first place was because I failed out of school, lost my scholarship and had to borrow to get back in and pay for everything since I didnt make enough and didnt want to wait longer to slowly get my degree. On top of 15k+ loans I racked up 10k+ in CC debt for the rest and some bad decisions(havent carried a balance on my cards ever since paying it off).

I NEVER once blamed anyone but myself for the circumstances that lead to my debts and NEVER once asked for help or forgiveness on them or gave an excuse as to why I shouldnt have to pay it back.[/quote]

If you don’t mind me asking, why did it take so long? Was it a 5 year loan or was that a budgeting decision? The reason I ask is because 25k isn’t really a lot of debt, especially considering that you are doing so well.

You don’t have to answer, I’m just curious.
[/quote]

I do not mind at all and it is a very good question. It is a combination of things.

I have been out of school for 4 years. The first two years I made 40-50k a year and had little to no financial IQ. I paid my minimun payment plus 50$ each month just out of habbit.

Year 3 I read maybe 50-75 books and listening to who knows how many audiotapes on business, finance, personal developement, investment, monitary systems and currency.

Year 4 was when I started to crack 6 figures. Between years 3-4(the past two years) I paid them agressively but only to the tune of my budgeting(which i know doesnt fully answer).

I beleive strongly in paying yourself first, everyone else secondly. I bought a house when the market bottomed out, paid off my short term debt(cc’s) started an investment fund, bought some physical silver/gold(mainly silver for reasons I wont go into) for protection, set up enough savings for emergencies. THEN i started to pay things off hard and agressive, while still enjoying my life(i believe if you do not spend your money or give away to charity freely it will stop flowing back to you). Hoarding money isnt good. Is you live like a miser to save for a rainy day, make sure you are not suprised when it floods.

So now I am at the point where 4.5 years removed I will be done, have a house with lots of equity now, a large seedling for retirement, rainy day money and a nice car/clothes etc. So that isnt a long time, considering it was only really 2 years of doing well and knowing what I was doing. That and this is still my first year in the 6 figs, despite pacing to make more money this year than the past 2.5 combined.

ALSO, 25K is a decent amount of money when you consider you are paying it off with after tax dollars. It is more like 35k of earnings. If you save 10% of your net take home each year, at 100k salary it would take you over 2 years to save that much.

That was much larger than I thought it would be… [/quote]

Thank you. I misspoke saying 25k wasn’t much as it certainly is. It is obvious that I take a different approach to things than you do, maybe out of necessity as I am far more in debt than you were. Either way, I anticipate paying 50% plus towards my debts before accruing any sort of assets. I’ve said it before and I’ll say it again, personal finance is just that, personal.

Either way, you seem like a really good guy and have a beautiful fiance.[/quote]

Hahah thanks on the last part :wink:

Mt advice, which I understand is coming unsolicited, is that regardless of your debt situation you should ALWAYS pay yourself first. Aquiring assets is the only way to wealth. You should read a book called ‘The Richest Man in Babylon’. It is very short, and written as a parable. Still to this day maybe the most important book I have ever read on personal finance yet it is so simple. I’d recomend it to anyone who pops into this thread.

I have decided that I’ll pay what is required of me. In ten years they’ll forgive the loan, right?

[quote]Brother Chris wrote:
I have decided that I’ll pay what is required of me. In ten years they’ll forgive the loan, right? [/quote]

If you pay what is required of you then after 10 years the loan should be paid in full.

Anyone that takes out student loans and does not pay them back should have their degrees revoked by the college! I paid for mine out of pocket and went part time for 8 years!

[quote]Arnold1979 wrote:
Anyone that takes out student loans and does not pay them back should have their degrees revoked by the college! I paid for mine out of pocket and went part time for 8 years![/quote]

Kind of like a repossession. I like this idea.

[quote]Arnold1979 wrote:
Anyone that takes out student loans and does not pay them back should have their degrees revoked by the college! I paid for mine out of pocket and went part time for 8 years![/quote]

Will never happen. It would disproportionately affect minorities (at least that would be part of the argument), therefore, dead in the water.

[quote]Sloth wrote:

[quote]Arnold1979 wrote:
Anyone that takes out student loans and does not pay them back should have their degrees revoked by the college! I paid for mine out of pocket and went part time for 8 years![/quote]

Will never happen. It would disproportionately affect minorities (at least that would be part of the argument), therefore, dead in the water.
[/quote]

Don’t forget women too.

[quote]Arnold1979 wrote:
Anyone that takes out student loans and does not pay them back should have their degrees revoked by the college! I paid for mine out of pocket and went part time for 8 years![/quote]

Genious.

Education is way too expensive in this country, I believe Finland has no tuition and has far better results.

[quote]Zeppelin795 wrote:
Education is way too expensive in this country,[/quote]

Because of nanny state government.

lol, that doesn’t mean it is free or any less expensive.