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The colossal US student-loan problem, in four charts

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  • Certainly the details need to be flushed out. Part of the proposal is making the current nightmare of repayment plans simply two. Many borrowers don’t understand the options and there’s an absurd amount of work required for annual certification of income based plans.

    Current loan forgiveness is 10

    Certainly the details need to be flushed out. Part of the proposal is making the current nightmare of repayment plans simply two. Many borrowers don’t understand the options and there’s an absurd amount of work required for annual certification of income based plans.

    Current loan forgiveness is 10 years for public service and 25 years on some income based plans, both with additional hurdles.

    But many people don’t do the necessary and on going work because it’s very unclear what needs to be done. Many people who think they’re doing it correctly may find they can’t get forgiveness due to paperwork problems. It’s a nightmare.

    Simplification would be a godsend. And while people don’t want to hear this - there is absolutely no reason for federal employees to get any sort of forgiveness not available to the general public. It’s bs. Many years ago government workers were paid below average wages but had above average security. Now they get average wages with above average security and for some reason additional perks such as loan forgiveness. And people wonder why the damn country’s broke.

    Ps. The chart on people who “can’t “ pay their loans is misleading. It’s not defaults, which would be much lower numbers. Should be labeled or titled at indicate what it represents - but it ain’t defaults.

  • Some subscribe to the theory that student loans are an investment in your future, where as car loans are just good money chasing after bad, an investment that crashes immediately and then just keeps falling, $1.3 Trillion car loan debt also. Check Allison Schager's article on student loan debt.

    If we

    Some subscribe to the theory that student loans are an investment in your future, where as car loans are just good money chasing after bad, an investment that crashes immediately and then just keeps falling, $1.3 Trillion car loan debt also. Check Allison Schager's article on student loan debt.

    If we accept that student loans might be 'good debt' like mortgage debt (used to be advantageous, before the itemized deduction was capped at $10K), then maybe the issue is more about high interest rates, which should be like <0.5%, and low incomes for people going to college for degrees with low pay or no job prospects. Computer Science degrees are gold right now, there's virtually unlimited employment opportunities for CS graduates. And yet prestigious universities still cling to the archaic requirements of core classes in the humanities like philosophy, religion and history. The only core class that should be required in today's world is Intro to Programming. Anyone that can learn to recognize if-then-else logic and loop sequences can be gainfully employed for life. And they can understand taxes, Excel conditional formatting, and the Law. And good parents don't let there kids pick a dumb degree at college. If you want to study archeology, then you need a minor in geology modelling to survive all the time that you're not going to be doing archeology. And there's this fossil fuel industry that happens to rely on geology modelling for everything, so put those together and you might have something. Philosophy majors, your parents should have yelled at you more. Switch to CompSci or behavioral psychology or economics, like immediately. Philosophy, please, that's a club, not a major.

  • Spoiler alert: it’s really bad.