Unluckiest Generation
07-03-2020, 08:55 PM
#191
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Joined APC: Apr 2013
Posts: 1,622
Originally Posted by NE_Pilot
I have been known to go off on tangents chasing squirrels, so there’s that.
I think doing this will have the least negative side effects in the long run. The main issue is that it will cause short term “pain” in making college “unaffordable” to most people as the loans will dry up faster than the prices will drop, but the prices will still drop quickly and that temporary “pain” won’t last. Universities will also protest as it means they will no longer have a source of unending funding and will have to cut budgets, but I think it will force the focus back to providing a quality education.
I think doing this will have the least negative side effects in the long run. The main issue is that it will cause short term “pain” in making college “unaffordable” to most people as the loans will dry up faster than the prices will drop, but the prices will still drop quickly and that temporary “pain” won’t last. Universities will also protest as it means they will no longer have a source of unending funding and will have to cut budgets, but I think it will force the focus back to providing a quality education.
Trust me, there will be plenty of banks lining up, fighting over each other to give loans to people who can't afford college.
07-03-2020, 09:07 PM
#192
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Joined APC: Apr 2017
Posts: 3,596
Originally Posted by 2StgTurbine
It's not dual income... it's median household income. I actually lived in Cincinnati and my rent for a 1 bedroom was $800. It was in one of the less desirable areas too.
And do you know what that leaves for savings? $900 a month. That has to cover retirement, medical costs, and an emergency savings fund. So, just to save up for a standard 6 months savings would take 24 months. That's 24 moths where you better hope that nothing goes wrong such as your car breaking.
And do you know what that leaves for savings? $900 a month. That has to cover retirement, medical costs, and an emergency savings fund. So, just to save up for a standard 6 months savings would take 24 months. That's 24 moths where you better hope that nothing goes wrong such as your car breaking.
07-03-2020, 09:31 PM
#193
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Joined APC: Apr 2017
Posts: 3,596
Originally Posted by 2StgTurbine
It's not dual income... it's median household income. I actually lived in Cincinnati and my rent for a 1 bedroom was $800. It was in one of the less desirable areas too.
And do you know what that leaves for savings? $900 a month. That has to cover retirement, medical costs, and an emergency savings fund. So, just to save up for a standard 6 months savings would take 24 months. That's 24 moths where you better hope that nothing goes wrong such as your car breaking.
And do you know what that leaves for savings? $900 a month. That has to cover retirement, medical costs, and an emergency savings fund. So, just to save up for a standard 6 months savings would take 24 months. That's 24 moths where you better hope that nothing goes wrong such as your car breaking.
07-03-2020, 09:39 PM
#194
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Joined APC: Feb 2010
Posts: 2,278
Originally Posted by SonicFlyer
Then you were living in a place that was too expensive if you couldn't afford it. You needed a roommate.
Are you telling half the country that they should have roommates? Half of the US population can just find a cheaper place. There isn't enough housing. The point I am trying to make is that the math doesn't work for the majority of the population.
While people like you just think the rest of the country should pull themselves up by the boot straps, the Fed and the stock market don't want Americans saving more than 8%.
07-04-2020, 04:02 AM
#195
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Joined APC: Jan 2006
Posts: 762
Originally Posted by PurpleToolBox
By definition, if you are taking out a loan for something, you CAN'T AFFORD IT.
Trust me, there will be plenty of banks lining up, fighting over each other to give loans to people who can't afford college.
Trust me, there will be plenty of banks lining up, fighting over each other to give loans to people who can't afford college.
I will grant you that most people who take out loans can’t afford what they are buying, but that doesn’t mean it is bad. Loans are good in that you trade future money for present money. Mortgages are a good example in that most cannot afford the price outright but can afford to pay more than the price in 15-30yrs.
A college loan may be worthwhile, but I would say not at current prices and current prices only exist because of government control of the student loan market.
A loan, like any other financial instrument, needs to be understood and weighed against other options. I would agree that most people may not know how to or actually do weigh the loans they sign or fully understand what is happening. I blame that on the public schools, they should be teaching finances, but in my experience they do not.
07-04-2020, 04:08 AM
#196
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Joined APC: Jan 2006
Posts: 762
Originally Posted by 2StgTurbine
You do know I using US census statistics? I never said I couldn't afford it. I was just saying that when I was in CVG, I couldn't find anything bigger than a 1 bedroom for under $1,000. The median family made less than me and also included kids.
Are you telling half the country that they should have roommates? Half of the US population can just find a cheaper place. There isn't enough housing. The point I am trying to make is that the math doesn't work for the majority of the population.
While people like you just think the rest of the country should pull themselves up by the boot straps, the Fed and the stock market don't want Americans saving more than 8%.
Are you telling half the country that they should have roommates? Half of the US population can just find a cheaper place. There isn't enough housing. The point I am trying to make is that the math doesn't work for the majority of the population.
While people like you just think the rest of the country should pull themselves up by the boot straps, the Fed and the stock market don't want Americans saving more than 8%.
Can you please elaborate on how the “stock market” and the Fed do not want you to save more than 8%? I do not understand what you mean by that.
07-04-2020, 04:47 AM
#197
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Joined APC: Apr 2011
Posts: 1,482
Originally Posted by Duffman
Damn straight we need gov't intervention, the current laws have created a rigged system where each generation of college students gets screwed even harder. Changing existing laws is not 'adding to govt' it's correcting a process that's being highly exploited.
The 50's middle class paradigm flipped and sank a while back. It's not going to be possible to capitalist tool/sub shop chain a way out either. Government WILL lead the reform. The question remains, how proficiently can it be done? Lincoln/FDR style or Maoist. So many skills so many of you possess, remarkably early development obvious to those of us old enough, honest enough, to compare. Advanced from birth almost. Tomorrows are open for bid. Nothing is written.
07-04-2020, 06:08 AM
#198
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Joined APC: Dec 2011
Position: A320 FO
Posts: 847
Originally Posted by NE_Pilot
Once again, if you get the government out of the student loan business this would correct itself in short order. If 18yr olds can’t get loans easily for the current tuition, tuition will come down and the price of college will become reasonable. The current prices are only possible due to government intervention.
07-04-2020, 06:21 AM
#199
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Joined APC: Nov 2011
Position: Volleyball Player
Posts: 3,982
Originally Posted by SonicFlyer
Then you were living in a place that was too expensive if you couldn't afford it. You needed a roommate.
07-04-2020, 06:28 AM
#200
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Joined APC: Jan 2006
Posts: 762
Originally Posted by tallpilot
The private market would probably still provide the loans. You also need to make them dischargeable in bankruptcy. Then the $100k for liberal arts degrees would dry up
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