DeacHawk
Punishingly Intricate
Income based repayment is my jam. Pay way less than normal and with the public service loan forgiveness program, after 10 years in the public sector, remaining balance forgiven.
Education Bubble
- Thread starter RaleighDeacon
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Income based repayment is my jam. Pay way less than normal and with the public service loan forgiveness program, after 10 years in the public sector, remaining balance forgiven.
DistrictDeacon
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Just hope that Congress doesn't eliminate the program before they are forgiven. That uncertainty convinced me to go ahead and work towards paying mine off fully.
DeacHawk
Punishingly Intricate
yeah that would suck. I figure 2017 is the first year it'll get any attention since that is when the first groups of loans will start getting forgiven under the program.
ChicdeaC
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This would be my jam if I weren't married. Should have kept filing separately ftl
BeachBumDeac
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Yeah, we're intentionally filing separately this year since 2015 would be my first year of loan payback. Really hoping to get 12 months of $0 monthly payments on the way to PSLF
RaleighDeacon
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Some interesting articles on the matter I read earlier today:
1. Forbes - There's No College Tuition 'Bubble': College Education Is Underpriced
Tuition increases are constantly in the news these days. Private colleges have become incredibly expensive (as I know personally, with a daughter currently attending one). Public colleges also have been raising tuition sharply in many cases, mostly to offset cuts in the funds they receive from state budgets. Yet, by the standards of the economic marketplace most colleges are still underpriced.
2. US News & World Report - Why the Education Bubble Will Be Worse Than the Housing Bubble
And the price of a college education soared—just as one would expect from a market flooded with cheap money. By law, lenders cannot even deny Stafford and Perkins loans (types of federal student loans) based on the borrower's credit or employment status. What other reason is there to deny a loan? And just as home buyers took out loans to speculate on houses they could never hope to afford, students are taking out loans to cover educations they often cannot complete and which often do not hold value in the market even when completed. Government meddling has again separated profit from risk. Universities get to keep the tuition profits while taxpayers are forced to shoulder the risk of students not paying back their loans.
3. The Boston Globe - Popping the higher education bubble
Indeed, this news about record giving to colleges coincided with a report from the Delta Cost Project, which found that new administrative positions drove a 28-percent expansion of university employees between 2000 and 2012. Meanwhile, the number of full-time faculty and staff members per professional or managerial administrator has fallen 40 percent.
4. The Huffington Post - 9 Striking Similarities Between the Housing Bubble and The Higher Education Bubble
In higher education, the belief is something along the lines of "I have to get a college degree, regardless of the cost, because a college degree is the only path to prosperity, and I won't be able to succeed without it." The fact that if you tell the average person not go to college they look at you like a crazy person is a sign that there is near universal belief about higher education.
5. Time - Viewpoint: Stop Calling Student Loans a “Bubble”!
The thing is, the student loan industry can’t crash, pop, fizzle, or otherwise suddenly deflate because the Department of Education backs at least 85% of all student loans. Of the remaining loans that are privately issued, 90% have cosigners. On top of that it’s nearly impossible for student loan debt — whether owed to the government or to private lenders — to be discharged during bankruptcy. The upshot is that rising delinquency and default rates on student loans, while troubling in many respects, are simply not a serious danger to bank balance sheets and therefore are not going to cause a banking crisis like the real estate bubble did. If default rates do end up being much higher than the government anticipates, it will lead to losses for the federal government, and may even cause some political turmoil, but it will not add up to a financial crisis.
1. Forbes - There's No College Tuition 'Bubble': College Education Is Underpriced
Tuition increases are constantly in the news these days. Private colleges have become incredibly expensive (as I know personally, with a daughter currently attending one). Public colleges also have been raising tuition sharply in many cases, mostly to offset cuts in the funds they receive from state budgets. Yet, by the standards of the economic marketplace most colleges are still underpriced.
2. US News & World Report - Why the Education Bubble Will Be Worse Than the Housing Bubble
And the price of a college education soared—just as one would expect from a market flooded with cheap money. By law, lenders cannot even deny Stafford and Perkins loans (types of federal student loans) based on the borrower's credit or employment status. What other reason is there to deny a loan? And just as home buyers took out loans to speculate on houses they could never hope to afford, students are taking out loans to cover educations they often cannot complete and which often do not hold value in the market even when completed. Government meddling has again separated profit from risk. Universities get to keep the tuition profits while taxpayers are forced to shoulder the risk of students not paying back their loans.
3. The Boston Globe - Popping the higher education bubble
Indeed, this news about record giving to colleges coincided with a report from the Delta Cost Project, which found that new administrative positions drove a 28-percent expansion of university employees between 2000 and 2012. Meanwhile, the number of full-time faculty and staff members per professional or managerial administrator has fallen 40 percent.
4. The Huffington Post - 9 Striking Similarities Between the Housing Bubble and The Higher Education Bubble
In higher education, the belief is something along the lines of "I have to get a college degree, regardless of the cost, because a college degree is the only path to prosperity, and I won't be able to succeed without it." The fact that if you tell the average person not go to college they look at you like a crazy person is a sign that there is near universal belief about higher education.
5. Time - Viewpoint: Stop Calling Student Loans a “Bubble”!
The thing is, the student loan industry can’t crash, pop, fizzle, or otherwise suddenly deflate because the Department of Education backs at least 85% of all student loans. Of the remaining loans that are privately issued, 90% have cosigners. On top of that it’s nearly impossible for student loan debt — whether owed to the government or to private lenders — to be discharged during bankruptcy. The upshot is that rising delinquency and default rates on student loans, while troubling in many respects, are simply not a serious danger to bank balance sheets and therefore are not going to cause a banking crisis like the real estate bubble did. If default rates do end up being much higher than the government anticipates, it will lead to losses for the federal government, and may even cause some political turmoil, but it will not add up to a financial crisis.
WinkinDeac
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I think the bubble is real and it's driven by private, not gov., ed loans. Students are graduating with too much debt to start the lives that most of us could look forward to once we got our first careers.
Private online colleges will be exhibit A. HPU will be Exhibit B for schools who have a low ROI based on expense.
Private online colleges will be exhibit A. HPU will be Exhibit B for schools who have a low ROI based on expense.
wfumike02
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We already have these items in multiple classes and curriculums. I'm teaching personal economics right now; students also learn about it in a life skills class. Pretty sure most of the math teachers at my school teach personal finance as well. Every high school graduate should know about these things since they are learning about it in class.
awaken
Well-known member
The late Randy Pausch created a site to teach children programming
http://www.alice.org/index.php
http://www.alice.org/index.php
mercurydime
Gangster of Love
Lots of talk on this thread about computer programming and money, and these are certainly part and parcel to diversifying an education, paying for one, reaping the monetary benefits of what's invested...and amortized reasonably.
I have to think that somewhere, somehow we have to make the very central aspects of one's education at least as much about building a values system that allows cultivation of refined discernment, problem solving...all the while nurturing creativity.
That has been and remains the bastion of the liberal arts. I don't know what we do to preserve that. It's beginning to cost too goddamn much for a person from my place in the socio-economic paradigm to be able to afford it.
By and large our population is an ill-informed one. Too much media bullshit. Too much, if "It's good enough for Momma and Daddy, then it's good enough for me."
I still don't know really what to do about these issues that I see as education's role to mitigate, transform, obliterate; and I spent 25 years trying to figure it out as I went about 'letting my conscience be my guide' in the classroom.
Sometimes I'm still frightened when I think about the potential ramifications if we do indeed fail.
I have to think that somewhere, somehow we have to make the very central aspects of one's education at least as much about building a values system that allows cultivation of refined discernment, problem solving...all the while nurturing creativity.
That has been and remains the bastion of the liberal arts. I don't know what we do to preserve that. It's beginning to cost too goddamn much for a person from my place in the socio-economic paradigm to be able to afford it.
By and large our population is an ill-informed one. Too much media bullshit. Too much, if "It's good enough for Momma and Daddy, then it's good enough for me."
I still don't know really what to do about these issues that I see as education's role to mitigate, transform, obliterate; and I spent 25 years trying to figure it out as I went about 'letting my conscience be my guide' in the classroom.
Sometimes I'm still frightened when I think about the potential ramifications if we do indeed fail.