DEFAULT...Student Loans

[moderndarwin]

Getting the topic back on hand.

My advice: Call em up and get the extended repayment plan (25 years). This will free up your current cash flow a lot. If you arent working get a income based repayment (stop making payments).

Once you are secure at your job, got some rainy day funds, etc start trying to pay off your student loans as fast as you can.

Think of student loans the same as you would a mortgage. It is an investment in yourself that appreciates way more than any other investment you.could make. This world is run by college graduates.

 

[capital sb]

All this STEM talk is funny. What if someone isn't into STEM? Should they study it in college just because it leads to a better job?

What happened to being able to follow your own path and still end up with a job that you can do more than just get by with?

I understand that knowing what you're getting into as far as career opportunities is concerned is key when choosing a major. But the answer to folks struggling after college shouldn't automatically be "you should've studied something different". Why do I have to decide between money and career satisfaction? Maybe there's more to the problem than someone's major?

If they choose to pursue a major that doesn't have an in demand (or any demand) job field, and are okay with that then they should go for it.

@ModernDarwin  The 25 year fixed repayment plan seems to make the most sense to me, but you must have at least 30K in loans.

 

[krazy88s]

Slowly turning into a money > all else discussion

 

[biggie62]

All this STEM talk is funny. What if someone isn't into STEM? Should they study it in college just because it leads to a better job?

What happened to being able to follow your own path and still end up with a job that you can do more than just get by with?

I understand that knowing what you're getting into as far as career opportunities is concerned is key when choosing a major. But the answer to folks struggling after college shouldn't automatically be "you should've studied something different". Why do I have to decide between money and career satisfaction? Maybe there's more to the problem than someone's major?

I agree, but like many people said to go to college just to go with a BS degree in sociology is pointless. Going into STEM or Business is the safer route since there is a demand for those skill-sets. Doesn't mean others can't do or learn the job and skills, but they are a bit more prepared to do it.

Problem is that even becoming a Police officer or firefighter or even a sanitation worker in NYC you need your associate degree now so there is just a requirement to do some college. Partially it's to see if you can buckle down, but what it comes down to it's easier for the employer to weed more people out so that the true candidate pool is small to deal with more than anything else.

 

[superblytrife]

 

All this STEM talk is funny. What if someone isn't into STEM? Should they study it in college just because it leads to a better job?

What happened to being able to follow your own path and still end up with a job that you can do more than just get by with?

I understand that knowing what you're getting into as far as career opportunities is concerned is key when choosing a major. But the answer to folks struggling after college shouldn't automatically be "you should've studied something different". Why do I have to decide between money and career satisfaction? Maybe there's more to the problem than someone's major?

When it comes to college I see it like this. The only reason to go to college is to obtain a degree that you NEED to pursue the career you desire. You cannot become a lawyer, doctor, engineer, etc... without a degree. A lot of students pursue a career that doesnt necessarily need a degree and go to college simply because its the usual next step in the education process or because all their friends are going to college only to not be in demand at all 4 years and many loans later

I agree with you 100%.  I've encouraged my kids to evaluate whether or not they really need to go to college, and I've let them know that they never have to feel like they have to go because everyone else is doing it.  

 

All this STEM talk is funny. What if someone isn't into STEM? Should they study it in college just because it leads to a better job?

What happened to being able to follow your own path and still end up with a job that you can do more than just get by with?

I understand that knowing what you're getting into as far as career opportunities is concerned is key when choosing a major. But the answer to folks struggling after college shouldn't automatically be "you should've studied something different". Why do I have to decide between money and career satisfaction? Maybe there's more to the problem than someone's major?

If they choose to pursue a major that doesn't have an in demand (or any demand) job field, and are okay with that then they should go for it.

@ModernDarwin  The 25 year fixed repayment plan seems to make the most sense to me, but you must have at least 30K in loans.

 

All this STEM talk is funny. What if someone isn't into STEM? Should they study it in college just because it leads to a better job?

What happened to being able to follow your own path and still end up with a job that you can do more than just get by with?

I understand that knowing what you're getting into as far as career opportunities is concerned is key when choosing a major. But the answer to folks struggling after college shouldn't automatically be "you should've studied something different". Why do I have to decide between money and career satisfaction? Maybe there's more to the problem than someone's major?

I agree, but like many people said to go to college just to go with a BS degree in sociology is pointless. Going into STEM or Business is the safer route since there is a demand for those skill-sets. Doesn't mean others can't do or learn the job and skills, but they are a bit more prepared to do it.

Problem is that even becoming a Police officer or firefighter or even a sanitation worker in NYC you need your associate degree now so there is just a requirement to do some college. Partially it's to see if you can buckle down, but what it comes down to it's easier for the employer to weed more people out so that the true candidate pool is small to deal with more than anything else.

Here's my problem with this thinking:  what makes a certain career path "in demand" or not?  Why is a degree in Sociology considered BS?  Because it isn't as hard as engineering?  There are a plethora of jobs outside of STEM that are critical to society as we know it (whether we realize it or not), and they often require a "BS" degree.  

Why should someone have to go the "safe route" in order to ensure that they can pay their student loans off after graduation?  Doesn't this seem completely backwards to anyone else?  So I have to choose between following a passion and being able to afford student loan payments?  I understand that we don't live in a utopian society where everyone is 100% satisfied in their jobs, but how depressing is it to think that you have to entertain whether or not to follow your passions based on if you'll be able to pay back student loans?    

This goes back to me saying the entire education system is broken--and student loans are just a part of it.  Maybe tuition should be based on earning potential to encourage people to not make money-based decisions?  I have 4 or 5 friends from college that all pursued engineering--10 years later, none of them are in the field because they HATED it.  They only went that route because of money.  I'd imagine there are a lot of other people out there who have done the same and are miserable.  But they're paid, right??!?!  Is this what we want our education system to be in America?  

I don't know.  I realize I'm rambling, but I just think the education system is broken.  I feel like its starting to boil down to 2 choices for a lot of people;  love what you do but struggle financially because you had to pay out of your *** to pursue what you love, or thrive financially but be miserable because the bulk of your waking hours are spent doing something you really don't care for.  

 

[biggie62]

I agree with you 100%.  I've encouraged my kids to evaluate whether or not they really need to go to college, and I've let them know that they never have to feel like they have to go because everyone else is doing it.  




Here's my problem with this thinking:  what makes a certain career path "in demand" or not?  Why is a degree in Sociology considered BS?  Because it isn't as hard as engineering?  There are a plethora of jobs outside of STEM that are critical to society as we know it (whether we realize it or not), and they often require a "BS" degree.  

Why should someone have to go the "safe route" in order to ensure that they can pay their student loans off after graduation?  Doesn't this seem completely backwards to anyone else?  So I have to choose between following a passion and being able to afford student loan payments?  I understand that we don't live in a utopian society where everyone is 100% satisfied in their jobs, but how depressing is it to think that you have to entertain whether or not to follow your passions based on if you'll be able to pay back student loans?    

This goes back to me saying the entire education system is broken--and student loans are just a part of it.  Maybe tuition should be based on earning potential to encourage people to not make money-based decisions?  I have 4 or 5 friends from college that all pursued engineering--10 years later, none of them are in the field because they HATED it.  They only went that route because of money.  I'd imagine there are a lot of other people out there who have done the same and are miserable.  But they're paid, right??!?!  Is this what we want our education system to be in America?  

I don't know.  I realize I'm rambling, but I just think the education system is broken.  I feel like its starting to boil down to 2 choices for a lot of people;  love what you do but struggle financially because you had to pay out of your *** to pursue what you love, or thrive financially but be miserable because the bulk of your waking hours are spent doing something you really don't care for.  

This I wholeheartedly agree with and one must weigh that option. Also as atomization comes into play more and more for certain jobs one must weigh in on whether their skill-set and career will become obsolete within their lifetime. The "safe" careers are boring as most of them require you to become a spreadsheet monkey. It does come down to what is important to you. Like personally, I love history but I know that unless I pursued a PhD and became a professor or chose law school. I chose business ultimately because it is safe. Most people who go into finance do it for the very same reason.

We do need artists, social workers, therapists, and so on and so on as the world would be boring and crazy without them. The system does need to be changed but it won't happen in my lifetime I feel, at least not here in the U.S.

 

[suchafraud23]

Should just be free.

But college is a business. Not an education institution.

One of the best businesses

 

[capital sb]

@superblyTRIFE  What makes a job in demand is the industries demand of people needed to fulfill that specific skill set. I believe that most sociologist and psychologist need at least a Master's or Phd to be successful/get a job in their career (don't quote me, but this is what I have heard). So if there are more people graduating with a BS degree than there are positions available you get a surplus of supply and very low demand.

Just like someone else said in here about lawyers, the demand is low due to the supply being too high, so lawyers aren't landing jobs after many years of schooling.

Currently the US can't keep up with the demand of engineers, the supply is too low.

 

[HankHill]

Here's my problem with this thinking: what makes a certain career path "in demand" or not? Why is a degree in Sociology considered BS? Because it isn't as hard as engineering? There are a plethora of jobs outside of STEM that are critical to society as we know it (whether we realize it or not), and they often require a "BS" degree.

Job opportunities.

You even have conventions trying to recruit engineering majors before they graduate.

I did a quick job search on indeed.com for both "sociology" and "engineering" in Houston, TX:
sociology - 51 results
engineering - 6,930 results
* This doesn't account for the level of the position (entry, senior, etc.). This based on jobs related to that field.

I personally don't see it as a bs degree (you're still going to school and taking classes like everyone else), but I see it as a bare minimum degree.

A lot of generic service jobs that require a college degree are going to ask for sociology, psychology and communications -- not because the work is related to it, but because they can verify you're a college graduate with college level problem solving, writing, and math skills at the minimum (i.e. you can write papers, your familiar with Microsoft word and excel, etc.)

Most of my family and friend's who have sociology degrees don't (and don't want) to do anything related to the field -- some went to grad school for an MBA, some went back for nursing, others just work retail or an hr position.

 

[richiecotite]

Unless you were born with a silver spoon in your mouth, defaulting on your student loans is a very terrible idea.

I can't even believe that some of y'all are in here trying to justify and legitimize such a dangerous course of action.

It's possible to attend college and not have to rely on student loans, but If you took 'em out, own up to your responsibilities and pay 'em back. It's that simple.


...

I don't think anyone in this thread said it was a good idea or advocating defaulting on student loans. I think most in here agree that defaulting on student loans is a bad idea. But in this one particular example, it seems to have worked out for him.

And please give, if you have advice on how to get through a 4 year university, without significant parental help or student loans, please feel free to share.

Of course there are options like joining the military, but something that could work for most typical prospective college bound students would be something I would love to hear.

 

[krazy88s]

Major in what you're interested in. The curiosity and the willingness to adapt are more important than what the degree is in.

 

[sea manup]

Major in what you're interested in. The curiosity and the willingness to adapt are more important than what the degree is in.

if your interested in history or arts dont major in anything because you will get a lot more value for your time not wasting it in college

 

[capital sb]

I don't think anyone in this thread said it was a good idea or advocating defaulting on student loans. I think most in here agree that defaulting on student loans is a bad idea. But in this one particular example, it seems to have worked out for him.

And please give, if you have advice on how to get through a 4 year university, without significant parental help or student loans, please feel free to share.

Of course there are options like joining the military, but something that could work for most typical prospective college bound students would be something I would love to hear.

Myself, @Rusty Shackelford, and a few others have given advice on how to make college more affordable. Look back a few pages.

There were some people in here advocating defaulting student loans.

 

[richiecotite]

Myself, @Rusty Shackelford
, and a few others have given advice on how to make college more affordable. Look back a few pages.

There were some people in here advocating defaulting student loans.

We're talking different things.

SuperAntigan said there are ways to get through school without loans. That's a different animal than general advice on how to make school cheaper on a macro level.

Of course scholarships, or having someone else pay for your education are great, but even most people with scholarships have to come out pocket thousands of dollars. Your suggestion of finding a gov job that will pay for a masters is great advice, but how are you going to get that federal job? I'm in the DC area, most people I know that got on with the gov either got in early, or they got their job through some sort of personal connection. Also, around here it's probably a lot easier getting a federal being that DC is the capital of the federal government. Most fed jobs in other parts of the country are either postal service or .mil/contractors.

Many private companies offer tuition reimbursemnet while you work for the company. That's reimbursement, you still gotta pay that school money up front, and wait, in many cases months, to get that back. And that does not cover edu loans you took out prior to working for the company. Manay companies also require a minimum length of employment before they even offer that, with requirements on the back saying that if you leave the company before X amount of time, you are liable to pay the company back.

I took a glance at some earlier pages and still didn't see anyone actively advocating defaulting on student loans.

 

[Xennial]

I don't think anyone in this thread said it was a good idea or advocating defaulting on student loans. I think most in here agree that defaulting on student loans is a bad idea. But in this one particular example, it seems to have worked out for him.

And please give, if you have advice on how to get through a 4 year university, without significant parental help or student loans, please feel free to share.

Of course there are options like joining the military, but something that could work for most typical prospective college bound students would be something I would love to hear.

I got through college without a dollar of student loan debt but then again I didn't go to college straight out of HS.  I used the money I had saved up in the 4-5 years after HS to pay my whole way through myself.  Another girl I went to school with did the same thing, a lot of people just think for some reason they have to go to college right after HS which is fine if you can pay for it but a lot of them just take out these loans with no concept of how much they'll have to pay back

 

[crcballer55]

Dude paid for his three Ivy League degrees using taxpayer monies, and now doesn't want to pay us back; and y'all in here big-upping his strategy?

x

http://www.slate.com/blogs/moneybox..._this_the_worst_op_ed_ever_written_about.html

...

An interesting thing was proposed the other day with the whole Corinthian College bankruptcy issue. I've heard that since their colleges are no longer in business, the Obama administration has proposed that their student loans should be forgiven. Others have proposed that if we're going to forgive their loans, then their credits should be revoked too.

What are everyone's thoughts on that?

 

[capital sb]

@richiecotite  Our CLEP exam suggestions can pay for up to 46 credits at most schools at $100/ exam. About 15 exams totaling $1500 add in some studying materials $200 max. That is almost 40% of your degree right there for a mere $1700. CC also pays for half of your degree at a very low cost.

The suggestion I made to the one poster was specifically for him, because he currently works at NASA. Easier for him to switch to other agencies.

I know many people that landed federal jobs without knowing someone takes hard work (applying to all postings, career fairs etc.), but it is doable. Still a good suggestion IMO fed govt has the best educational assistance. If you are willing to relocate , but there are also federal jobs all over the country.

None of the companies I've looked at made you wait to start getting tuition assistance benefits, so I wasn't aware of that. You can also send your school a tuition deferment letter in which they allow you to pay once your employer compensates you.

Only ways that I know to make college completely free is to receive grants, scholarships, work at the university, or save up. 

 

[plansb]

The last 3 companies I have been at have had tuition advanced payment programs. And none had any employment time minimums before you were able to use them. There are usually minimum lengths of time after that you need to stay with the company, or you owe a percentage back to them. But that isn't necessarily a bad thing - they are making an investment in you and want some sort of ROI.

Like I said before, you can get a bachelor's without going into significant debt. Community college and then an affordable 4 year school is the way to go. Also, working while you go to school and that means that maybe you don't take 15 credits/sem, maybe you take 9-12 and it takes you 5 or 6 years. Living at home is a big help too, if it is an option; and also just being frugal and smart with your money. And a lot of schools have payment plans where you can pay X installments on a semesters cost. I got through my undergrad that way and I graduated with about 1000$ in credit card debt - that's it. Then I got a job after college and they pay for postgraduate.

 

[c hanna]

And is that so bad?

Did you go to college? Do you own a car or house? Or your parents?

I am curious as to how you/they paid for all of these

 

[Xennial]

Did you go to college? Do you own a car or house? Or your parents?

I am curious as to how you/they paid for all of these

Yes I just wrote above that I went to college and paid for it myself.  I don't own a car anymore but I did before and paid for it in cash.  Don't own a house 

 

[richiecotite]

@richiecotite
 Our CLEP exam suggestions can pay for up to 46 credits at most schools at $100/ exam. About 15 exams totaling $1500 add in some studying materials $200 max. That is almost 40% of your degree right there for a mere $1700. CC also pays for half of your degree at a very low cost.

The suggestion I made to the one poster was specifically for him, because he currently works at NASA. Easier for him to switch to other agencies.
I know many people that landed federal jobs without knowing someone takes hard work (applying to all postings, career fairs etc.), but it is doable. Still a good suggestion IMO fed govt has the best educational assistance. If you are willing to relocate , but there are also federal jobs all over the country.

None of the companies I've looked at made you wait to start getting tuition assistance benefits, so I wasn't aware of that. You can also send your school a tuition deferment letter in which they allow you to pay once your employer compensates you.

Only ways that I know to make college completely free is to receive grants, scholarships, work at the university, or save up. 

That's good info you posted.

And I guess I can't speak to most companies, but the last company I worked for had a req. of 6 months employment before tuition reimbursement kicked in, and kicked in a max of (i think) $2500 per completed semester. I work in the non profit world, so some of our benefits probably don't compare to private sector.

 

[c hanna]

Yes I just wrote above that I went to college and paid for it myself.  I don't own a car anymore but I did before and paid for it in cash.  Don't own a house 

missed that, good for you

i couldnt have done that for the sake that my school cost 15K a year before housing. And for the profession I want, it would be very difficult without going to a top school

 

[agentorange]

missed that, good for you

i couldnt have done that for the sake that my school cost 15K a year before housing. And for the profession I want, it would be very difficult without going to a top school

I wish my tuition was 15K before housing.

 

[rexanglorum]

I have a question for those who approve of the current system of educational finance. Since graduate and undergraduate education are supposed to be funded privately (through parents, scholarship and student loans), should college prep classes, high school classes, be funded in the same manner?

If deconstructing Proust in grad school is a waste of time and reading Dante in undergrad is frivolous, shouldn't reading Chaucer and studying the Spanish Language and the US Constitution in high school be treated the same way by tax payers? If your parents are wealthy, you may obtain a liberal education in 9th through 12th grade but if your parents are not rich, shouldn't you either have to enter the work force after the 8th grade or undertake your secondary education as a customer who has to pledge his future earning for the right to be student during middle adolescence?

We all know that 15 and 16 year olds have too much leisure time and a sense of entitlement, shouldn't they be working instead of engaging in the four year party that we call high school (we've all seen the movies and TV shows, they are never even studying). Shouldn't Americans who are poor and middle class be forever in debt for choosing to, at the age of 14, be so awful as to read Melville instead of being a full time grocery store clerk? The hard working taxpayers must be spared the damage caused by AP French and P.E. and Homeroom, none of which prepare our youth to be good number crunchers and spread sheet monkeys.

 

[seminolesjordan]

At what point do loans default?