College Debt is "Good" Debt??

Parents Forum
1

<p>and so who is going to pay for that upfteen billion…</p>

<p>[Student</a> Loan Bill: ?Failure Is Not an Option? Says Education Secretary Duncan | Daily Ticker - Yahoo! Finance](<a href=“http://finance.yahoo.com/blogs/daily-ticker/student-loan-bill-failure-not-option-says-education-154454285.html]Student”>Student Loan Bill: “Failure Is Not an Option” Says Education Secretary Duncan)</p>

<p>My students, through heir future taxes, although they don’t take loans…</p>

2

<p>Per the article, Education Secretary Duncan says not putting a stop to the interest rate increase from 3.4% to 6.8%, “…would be too devastating to over 7 million young people and families around the country.” (referring to new undergrad borrowers).</p>

<p>Is finding $6 billion in federal money to stop this really worth it? The increase in a monthly payment on $27K in loans would be $44.97. Do people really think that additional amount will be “devastating” to borrowers?</p>

3

<p>It might be.</p>

4

<p>Ok, you are right, it might be to some borrowers. But is it disingenuous to say it would be “devastating” to all 7 million new borrowers? That seems like an irresponsible exaggeration.</p>

5

<p>That’s a fair statement.</p>

6

<p>That $45 increase per month - is “devastating” for the borrowers…
then
Who is supposed to pay it? They are subsidized loans…and not all taxpayers can get them…let those who get the loans pay for their loans…
$45 is what to these kids? A few pizzas, lattes.</p>

7

<p>I thought the interest rate changed for BOTH subsidized and unsubsidized loans. Good to know it did not.</p>

<p>We have student loans. No, $45 will not bother us…but would also like to point out that our son doesn’t have much spending money. His student loan money pays for school. Not pizza or lattes.</p>

8

<p>Don’t the borrowers of subsidized loans only have to pay them after completing the degree…meaning the payments are deferred …</p>

<p>I mean If that is the case–then they are paying them back after graduation…and so you make choices about what you are doing in the budget after college…and a few less pizzas and lattes will make that $45.</p>

<p>Our student can’t get subsidized loans…and has almost no spending money. Spent about all of $40 a month which included toiletries, haircuts and an occasional egg sandwich. So with as frugal as our student is being now, I certainly don’t want to be paying for other people’s loans…(nor have my student paying) when that $45 a month should be the borrowers issue…not the taxpayers.</p>

9

<p>I don’t want to be paying for others either. I’m tired of subsidizing all the people with home mortgages. Let’s get rid of that interest credit too.</p>

10

<p>SOME college debt is good debt. It’s an investment unlike car debt or credit card debt. Stafford loan limits are fine.</p>

<p>Truly, I don’t see the problem with this rate increasing. I don’t think it’s going to be “devastating”. </p>

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<p>Those with unsubsidized stafford loans don’t have to pay until after their degree either…</p>