Originally Posted by
KirillTheThrill
Right more assistance in loans will totally fix the shortage. No biggy, just take out $100,000 in federal student loans at a 7-8% interest rate. Then you can go work at a reduced pay rate at one of the regional shops until one day a mainline shop maybe gives you a shot.
But until then, nothing is guaranteed, and enjoy your accrued interest on top of the $100,000 loan, which ends up being a monthly payment around the same rate you pay for rent.
Thankfully I took out private loans (2-3% interest) and was able to get some assistance in scholarships, which allowed me to have my loans paid off just past my first year in the left seat as a regional captain. But for most that’s not the case, and those Federal loans are killer.
Scott’s solution to fix a shortage was to encourage more individuals to take on 6 figure debt. Good luck 👍. And once again, I have seriously question his intelligence.
Whoaa hold on. Federal loans are not nearly as bad as private loans depending on your decade. Those who were in college from 2000-2010 likely had variable rate private loans because those were the only things offered. At least federal loans are generally fixed.
- Federal loans qualify for hardship forbearance by law, private loans it's by program and at the discretion of the lender.
- Federal loans can be consolidated through the federal consolidation mechanism, private must be through another private loan and lender.
- Federal loans qualify for income based repayment and graduated payment schedules. Private loans do not.
- Federal loans can be forgiven after 25 years on certain payment plans, private loans cannot.
I went years with variable rate private loans because my credit wasn't good enough to get a refi amount that would cover them all, so I was variable between 8%-15% on them. I finally refinanced the one I had left during covid and it went from 12% to 5%... My federals were fixed the whole time at 7%.