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Topic	Baby Boomers: Enjoy this recession right after college, Millennials
ChocoboMog123 08/23/19 12:25:09 AM #40:	Zanzenburger posted... deupd_u posted... I can't freaking stand this argument. They were smart enough to go to college, they're smart enough to know what a loan is. I hear this same thing about guns and sex ed: "if only there were more education!" Everyone knows if you pull the trigger, it goes bang. If you fhjfehdu inside, babby is formed. If you take out a loan, you have to pay it back. It is quite obvious to everyone who takes out a loan that they have to pay it back. What they may not understand is how compounding interest works, and the fact that this makes student loans more expensive then other loans out there. They may not understand that due to the federal guarantee on a student loan, it will not go away in bankruptcy, so they will be stuck with it forever. They may not understand that even private student loans can qualify for the same creditor protections as a federal student loan. They may not understand that having a student loan right after college will already put their credit score at a disadvantage at buying a house or car due to the percentage of their balance not being paid lowering their score. They may also not realize how much they will likely make in a job post-college (assuming they find a job), compared to the estimated monthly payment they will have to make on a college loan. These are all aspects of the student loan process that are not "common sense" and requires education to consider whether these stipulations make a student loan worth it. And, even if you do understand all this, these factors affect the damn economy. Graduates making 60-70k a year paying back 60-120k student loan debt have to devote a significant portion of their income to their debt. Doing so causes them to hold back on things like buying a house, starting a family, starting savings, or other activities that contribute to their community financially. They may also hold onto a "safe" job rather than pursue riskier high-paying options because of the looming debt. Student loan debt is a pretty elastic bubble, but it is still stymieing a growing economy. It's no secret that college tuition has exploded, let alone costs of text books and rent. Nor that college has become standards in fields where previously it was exemplary. --- "You're sorely underestimating the power of nostalgia goggles." - adjl http://www.smbc-comics.com/comics/20110218.gif <cite>ChocoboMog123 posted [p:926431912] in Baby Boome... [t:77957308]...</cite> <quote>Zanzenburger posted...</cite> <quote>deupd_u posted...</cite> <quote>I can't freaking stand this argument. They were smart enough to go to college, they're smart enough to know what a loan is. I hear this same thing about guns and sex ed: "if only there were more education!" Everyone knows if you pull the trigger, it goes bang. If you fhjfehdu inside, babby is formed. If you take out a loan, you have to pay it back. </quote> It is quite obvious to everyone who takes out a loan that they have to pay it back. What they may not understand is how compounding interest works, and the fact that this makes student loans more expensive then other loans out there. They may not understand that due to the federal guarantee on a student loan, it will not go away in bankruptcy, so they will be stuck with it forever. They may not understand that even private student loans can qualify for the same creditor protections as a federal student loan. They may not understand that having a student loan right after college will already put their credit score at a disadvantage at buying a house or car due to the percentage of their balance not being paid lowering their score. They may also not realize how much they will likely make in a job post-college (assuming they find a job), compared to the estimated monthly payment they will have to make on a college loan. These are all aspects of the student loan process that are not "common sense" and requires education to consider whether these stipulations make a student loan worth it.</quote> And, even if you do understand all this, these factors affect the damn economy. Graduates making 60-70k a year paying back 60-120k student loan debt have to devote a significant portion of their income to their debt. Doing so causes them to hold back on things like buying a house, starting a family, starting savings, or other activities that contribute to their community financially. They may also hold onto a "safe" job rather than pursue riskier high-paying options because of the looming debt. Student loan debt is a pretty elastic bubble, but it is still stymieing a growing economy. It's no secret that college tuition has exploded, let alone costs of text books and rent. Nor that college has become standards in fields where previously it was exemplary. --- "You're sorely underestimating the power of nostalgia goggles." - adjl http://www.smbc-comics.com/comics/20110218.gif</quote> ... Copied to Clipboard!
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