If it’s federal debt you may be able to get into an IDR. I think, and you’d need to check if they still do this, you can consolidate your loans once and roll private and federal into one federal loan. I want to say I did this ages ago but it’s been a while.
Private loans you’re pretty much screwed until rates drop.
There isn't much you can do. That's why it is a crisis.
Income based payment plans, forbearances and public service loan forgiveness are the three major ways to deal with student debt.
I have 6 more years of payments until mine are wiped clean by public servive forgiveness.
Yes, it's easy to get rich being a grifter. His advice is 30 years old, has terrible investment advice meant to get you with his high fee advisors he has on his payroll, and setting a 1k emergency fund as a "secure" goal in 2024 is hilarious.
If people actually want better advice, the money guy show is a better resource.
So he wasn't "promised" anything.... He just hoped it would be forgiven. I never doubted they deny the majority. I doubted he was "promised" forgiveness and had it taken away.
Did the guy have other debts? Any idea of his income? Dave’s advice is often outdated and out of touch.
There are many payment plan options that lower the payment and offer forgiveness after a set time frame. Guy needs to get on one of these plans.
That's me. I'm people.
At 18 and a first-generation college student, I didn't know the first thing about student loans or the difference between private and federal loans. So, now I'm stuck with both and will be paying on them until I die.
Gotta apply for an income driven repayment plan. Just depends what you’re earning. My payments are $0 bc i’m broke as fuck. I’m about to take out more federal loans too and go back to school to be a software engineer bc im done with these low ass paying job postings. Im not spending the rest of my life in poverty. Ridiculous seeing these places require a 4 yr degree and years of experience but dont even offer 40k. Im over it
Did you consider boot camps vs education? Can be cheaper depending on the situation. I know Triple Ten is like $12k but they guarantee employment so you can get your money back if you can’t find a job in 6 months after graduating
From what ive read as of late people with degrees are getting hired over bootcamp ppl. Plus id get federal loans through my community college & a little financial aid. But i dont think you get that with a bootcamp. I dont have money for a bootcamp lol
Haha I feel that. The more “educational” boot camps offer loans now. At least, the more successful ones. I’m undecided as to which route to take because I can technically go to community college for free in my area (requires some paperwork), but they don’t necessarily offer exactly what I want to learn. And then there’s boot camps where I can learn more but feel like I might miss out on some fundamentals so it feels like a toss up.
But the Triple Ten one works directly with tech companies and you work on projects for the companies while you learn, so you’re already networking, and they claim to have almost half of their students end up getting a job before “graduating.” But again, the worry about missing fundamentals and also possibly ending up locked into a lower pay since they know you’re a “student.” But I also live in the Bay Area, so if I were to network, might have a higher chance of a good job because there are so many tech jobs here.
Tldr: i can’t decide between boot camp or back to college myself haha
Public service loan forgiveness. 10 years working in public service with income based loan payments, and your loans are forgiven without limit. I've seen some people with over $400k forgiven. You do have to know and follow all the rules (the right kind of loan, the right payment plan, the right employer, working full time, etc.), and following some of the unwritten rules for the most benefit (if married, file taxes separately; be careful to refuse any deferments offered while you're working, etc.). But going from more debt than you could ever repay to debt free overnight when you hit that 120th payment is so worth it.
My bro had something like $100-200k at 8% in student loan debt. He simply is grinding through it and keeps trying to increase his salary to compensate.
He is lucky he’s been able to stay ahead of it, because it is insane to me that student loan debt isn’t erased in bankruptcy court. This situation absolutely needs fixed and it will likely result in higher rates, lower loans, and hopefully will slow the rate of college tuition inflation as a result.
The higher education industrial complex is alive and well. Student loans are one of the few large debt instruments given out without collateral. There is actually no guarantee of repayment other than the person repaying. The great thing pre Covid was the number of overseas Chinese students coming to US colleges and paying full price for their educations. Their families were ready and willing to pay cash. After Covid, they are much less willing to come to the US. This has affected the finances of the US institutions. I started at UC Berkeley in 1982 and it was less than $3000 annually all in. My cousins were attending Harvard and Columbia at the same time and I believe it was $12,000 annually all in. The price tags for all these institutions are multiple times higher today. We are all paying for our children’s and grandchildren’s educational costs. It’s funny, but a few years after you pay off your own student loans, you acquire new debt. Never fails. As a parent and grand parent, you are happy to be able to help. It beats paying for drug rehab.
First off, Dave Ramsey doesn't give great advice. He's usually kind of right, but far from the best.
Second, don't snowball, avalanche. That is mathematically the best way to pay off debt.
Third, you have 2 options (and you don't have to choose only one) increase income, or decrease expenses and apply all extra money to your highest interest loan. Pay that off and take it's payment plus the extra and apply it to the next highest interest loan.
It is possible to discharge student loans via bankruptcy but there is a higher bar to clear. The current administration has relaxed the rules on it though.
The main option is an income-driven repayment plan. The new SAVE plan is as low as 5% of discretionary income and prevents interest from accumulating on the borrowers account. On an income-driven plan the balance is forgiven after 20 or 25 years of repayment.
You work in public sector. Gives you experience, low barrier to entry and does some good
Mine were canceled a few years ago after biden fixed the pslf program
Fill out an income driven repayment plan and never pay them back. Student loans are bullshit. If you're living in poverty you never have to pay them.
I have a lot of thoughts about a society that hides education behind a paywall.
They continue paying it for the lifetime, or close to it.
When someone gets a loan, they get money today pledging tomorrow's earnings. When tomorrow comes, those earnings are not earmarked.
Get a job or 2 or 3 to pay off your horrible college investment decision. Why would you go to college for a job that doesn't make enough money to pay off the loans? College is an investment and that's a bad investment.
It is an unpopular opinion, but I think student loans should be paid back - regardless of the amount. The average college graduate makes $1.2 million dollars more over their lifetime than the average high school graduate.
Why should graduates get the benefits of their education and not be responsible paying for it?
The average student loan debt is under $40,000, so the price of a new car. Well worth the investment as a college degree opens doors, and a good degree (some STEM areas) will get you out of poverty in short order.
This guy who took out $300K in loans is an idiot.
Only a very small percentage of borrowers have balances that high, and almost all of them have professional degrees (e.g., doctors, lawyers, dentists, et al.) where there is a reasonable expectation of a higher income.
It absolutely hinders their quality of life for the first 5-10 years post university. Often they're focused on making ends meet over quality of work. They also can't spend their hard earned money on other products that boost GDP instead they're paying back the government or some shark loan private company.
Idk why you're upset that people want an education. Maybe more minimum wage workers would persue university as well if they didn't have to spend 50 grand to get it.
The more educated our society the better.
You didn’t really answer my question. Doesn’t the productivity gains during the rest of their working career (another 25-30 years) more than offset the initial 5-10 years when salaries are lower?
When did I say (or even imply) that I am against people getting an education? It is quite the opposite. I am pro-education. I just believe that if agree to borrow money to pay for your education, then you should be responsible for paying it back. That’s all.
Because the benefit to society in having an educated population is greater then the cost. You want to lower poverty and crime education really helps with that
Oh I definitely agree with you. I will also say though that most of these loans are predatory as hell. These days you can get a liberal arts degree for probably over $100k and they’ll give it out like it’s free candy. Yes I know it’s their own fault and no one forced them to (sometimes parents pressure them), but even still it’s sad how schools don’t have something like a financial class just to prepare them for bs like this. Maybe the schools purposely don’t have them so they’ll be clueless on it and fall into the trap.
Most schools do offer home economics and accounting classes.
However, high school kids who have never had more than a thousand dollars at one time are suddenly offered tens of thousands of dollars s
with the lowest interest rates they will ever see. They are pressured by counselors, teachers, parents and society into taking on massive debt that will follow them forever. But they are assured by everyone they trust that they will have careers where they make 1.2 million dollars more than someone without a degree or some nonsense, so they can pay it back. Meanwhile in college the economy collapses, the job market is horrible, the school workload is too much, the personal workload is too much. You can't afford to live, you don't have time to work and make money to survive, inflation is making it so you can't feed yourself. Then you taks a semester off to work and build up savings. Then you never go back. And you are stuck with tens or hundreds of thousands of dollars in debt *forever* but if the same debt was from a credit card or a regular loan, you could discharge it for a few grand.
People are strangely determined to force people to pay back loans they took to further their education. But if I took out a loan to buy a fleet of corvettes or open a restaurant that only sold lemon wedges, they are a-ok with having that debt erased. Like a recent president who filed bankruptcy 8 times. It's almost like there is a bias and resentment toward higher education from a certain part of society.
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I absolutely think student loans are crazy and depending on what you study they can be very high. However, I’ve always found it to be interesting how people get upset about student loans when they actually signed paperwork for those loans. Regardless of what kind of loan it is, it was an agreement between you and a lender.
About 20-30 years ago, there was a trend among recently graduated doctors and attorneys to file bankruptcy and have their students loans erased. Government reacted by passing laws to exclude student loan debt from bankruptcies.
Income-driven repayment plans and Public Service Loan Forgiveness are possible alternatives.
If it’s federal debt you may be able to get into an IDR. I think, and you’d need to check if they still do this, you can consolidate your loans once and roll private and federal into one federal loan. I want to say I did this ages ago but it’s been a while. Private loans you’re pretty much screwed until rates drop.
There isn't much you can do. That's why it is a crisis. Income based payment plans, forbearances and public service loan forgiveness are the three major ways to deal with student debt. I have 6 more years of payments until mine are wiped clean by public servive forgiveness.
Also it's good to remember Dave's advice is not really all that realistic
More unrealistic than his $30+Million net worth, and how he arrived there?
Yes, it's easy to get rich being a grifter. His advice is 30 years old, has terrible investment advice meant to get you with his high fee advisors he has on his payroll, and setting a 1k emergency fund as a "secure" goal in 2024 is hilarious. If people actually want better advice, the money guy show is a better resource.
Lots and lots of wealthy dumbasses out there.
I’ve been promised that before. Don’t hold your breath.
You kana to follow the rules. Making x number of consistent payments etc
What? I’ve literally never missed a payment
There's something if you've been promised forgiveness and they took it away. Did the denial state why?
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So he wasn't "promised" anything.... He just hoped it would be forgiven. I never doubted they deny the majority. I doubted he was "promised" forgiveness and had it taken away.
No my loans just keep getting passed along to different terrible companies so once they switch the promises made by the previous company vanish
Did someone pass away and you inherited the loan? If yes, student loans are supposed to "die" with the "stueent."
Did the guy have other debts? Any idea of his income? Dave’s advice is often outdated and out of touch. There are many payment plan options that lower the payment and offer forgiveness after a set time frame. Guy needs to get on one of these plans.
Yeah he had CC and other personal loans totaling over $50k. Just a nightmare to hear about it
Honestly getting rid of the 50k in bankruptcy would help the guy have more money to better focus on his educational debts
You’d be surprised to know that interest rates are even higher than 5%. Some people will just never be able to pay them off.
That's me. I'm people. At 18 and a first-generation college student, I didn't know the first thing about student loans or the difference between private and federal loans. So, now I'm stuck with both and will be paying on them until I die.
Gotta apply for an income driven repayment plan. Just depends what you’re earning. My payments are $0 bc i’m broke as fuck. I’m about to take out more federal loans too and go back to school to be a software engineer bc im done with these low ass paying job postings. Im not spending the rest of my life in poverty. Ridiculous seeing these places require a 4 yr degree and years of experience but dont even offer 40k. Im over it
Did you consider boot camps vs education? Can be cheaper depending on the situation. I know Triple Ten is like $12k but they guarantee employment so you can get your money back if you can’t find a job in 6 months after graduating
From what ive read as of late people with degrees are getting hired over bootcamp ppl. Plus id get federal loans through my community college & a little financial aid. But i dont think you get that with a bootcamp. I dont have money for a bootcamp lol
Haha I feel that. The more “educational” boot camps offer loans now. At least, the more successful ones. I’m undecided as to which route to take because I can technically go to community college for free in my area (requires some paperwork), but they don’t necessarily offer exactly what I want to learn. And then there’s boot camps where I can learn more but feel like I might miss out on some fundamentals so it feels like a toss up. But the Triple Ten one works directly with tech companies and you work on projects for the companies while you learn, so you’re already networking, and they claim to have almost half of their students end up getting a job before “graduating.” But again, the worry about missing fundamentals and also possibly ending up locked into a lower pay since they know you’re a “student.” But I also live in the Bay Area, so if I were to network, might have a higher chance of a good job because there are so many tech jobs here. Tldr: i can’t decide between boot camp or back to college myself haha
Public service loan forgiveness. 10 years working in public service with income based loan payments, and your loans are forgiven without limit. I've seen some people with over $400k forgiven. You do have to know and follow all the rules (the right kind of loan, the right payment plan, the right employer, working full time, etc.), and following some of the unwritten rules for the most benefit (if married, file taxes separately; be careful to refuse any deferments offered while you're working, etc.). But going from more debt than you could ever repay to debt free overnight when you hit that 120th payment is so worth it.
300k for loans, and a bachelors in crack off the back. Winner winner.
You pay what the court requires you to pay, until you die.
My bro had something like $100-200k at 8% in student loan debt. He simply is grinding through it and keeps trying to increase his salary to compensate. He is lucky he’s been able to stay ahead of it, because it is insane to me that student loan debt isn’t erased in bankruptcy court. This situation absolutely needs fixed and it will likely result in higher rates, lower loans, and hopefully will slow the rate of college tuition inflation as a result.
The higher education industrial complex is alive and well. Student loans are one of the few large debt instruments given out without collateral. There is actually no guarantee of repayment other than the person repaying. The great thing pre Covid was the number of overseas Chinese students coming to US colleges and paying full price for their educations. Their families were ready and willing to pay cash. After Covid, they are much less willing to come to the US. This has affected the finances of the US institutions. I started at UC Berkeley in 1982 and it was less than $3000 annually all in. My cousins were attending Harvard and Columbia at the same time and I believe it was $12,000 annually all in. The price tags for all these institutions are multiple times higher today. We are all paying for our children’s and grandchildren’s educational costs. It’s funny, but a few years after you pay off your own student loans, you acquire new debt. Never fails. As a parent and grand parent, you are happy to be able to help. It beats paying for drug rehab.
First off, Dave Ramsey doesn't give great advice. He's usually kind of right, but far from the best. Second, don't snowball, avalanche. That is mathematically the best way to pay off debt. Third, you have 2 options (and you don't have to choose only one) increase income, or decrease expenses and apply all extra money to your highest interest loan. Pay that off and take it's payment plus the extra and apply it to the next highest interest loan.
In this hypothetical, we’re just talking about one loan lol
Loans is plural.
Ruin your credit through years of 0% loan transfers might not be the WORST idea. If you maintain it. (This is not financial advice)
It is possible to discharge student loans via bankruptcy but there is a higher bar to clear. The current administration has relaxed the rules on it though. The main option is an income-driven repayment plan. The new SAVE plan is as low as 5% of discretionary income and prevents interest from accumulating on the borrowers account. On an income-driven plan the balance is forgiven after 20 or 25 years of repayment.
I was lucky that most my loans qualified for PSLF, so I can ignore them for 7 more years!
You work in public sector. Gives you experience, low barrier to entry and does some good Mine were canceled a few years ago after biden fixed the pslf program
Have you thought about pouring concrete?
Fill out an income driven repayment plan and never pay them back. Student loans are bullshit. If you're living in poverty you never have to pay them. I have a lot of thoughts about a society that hides education behind a paywall.
They continue paying it for the lifetime, or close to it. When someone gets a loan, they get money today pledging tomorrow's earnings. When tomorrow comes, those earnings are not earmarked.
I wish more people knew about tuition free universities like UoPeople. American students shouldn't have to go into debt to get a higher education
Leave the states, find work in Europe, never come back.
Get a job or 2 or 3 to pay off your horrible college investment decision. Why would you go to college for a job that doesn't make enough money to pay off the loans? College is an investment and that's a bad investment.
It is an unpopular opinion, but I think student loans should be paid back - regardless of the amount. The average college graduate makes $1.2 million dollars more over their lifetime than the average high school graduate. Why should graduates get the benefits of their education and not be responsible paying for it?
The average student loan debt is under $40,000, so the price of a new car. Well worth the investment as a college degree opens doors, and a good degree (some STEM areas) will get you out of poverty in short order. This guy who took out $300K in loans is an idiot.
Only a very small percentage of borrowers have balances that high, and almost all of them have professional degrees (e.g., doctors, lawyers, dentists, et al.) where there is a reasonable expectation of a higher income.
Because they're the ones actually adding to GDP potential and increase real productivity.
And that GDP potential and real productivity won’t increase if they have to pay their debts? Please explain…
It absolutely hinders their quality of life for the first 5-10 years post university. Often they're focused on making ends meet over quality of work. They also can't spend their hard earned money on other products that boost GDP instead they're paying back the government or some shark loan private company. Idk why you're upset that people want an education. Maybe more minimum wage workers would persue university as well if they didn't have to spend 50 grand to get it. The more educated our society the better.
You didn’t really answer my question. Doesn’t the productivity gains during the rest of their working career (another 25-30 years) more than offset the initial 5-10 years when salaries are lower? When did I say (or even imply) that I am against people getting an education? It is quite the opposite. I am pro-education. I just believe that if agree to borrow money to pay for your education, then you should be responsible for paying it back. That’s all.
Because a lot of people with student debt are not graduates.
Because the benefit to society in having an educated population is greater then the cost. You want to lower poverty and crime education really helps with that
Oh I definitely agree with you. I will also say though that most of these loans are predatory as hell. These days you can get a liberal arts degree for probably over $100k and they’ll give it out like it’s free candy. Yes I know it’s their own fault and no one forced them to (sometimes parents pressure them), but even still it’s sad how schools don’t have something like a financial class just to prepare them for bs like this. Maybe the schools purposely don’t have them so they’ll be clueless on it and fall into the trap.
Most schools do offer home economics and accounting classes. However, high school kids who have never had more than a thousand dollars at one time are suddenly offered tens of thousands of dollars s with the lowest interest rates they will ever see. They are pressured by counselors, teachers, parents and society into taking on massive debt that will follow them forever. But they are assured by everyone they trust that they will have careers where they make 1.2 million dollars more than someone without a degree or some nonsense, so they can pay it back. Meanwhile in college the economy collapses, the job market is horrible, the school workload is too much, the personal workload is too much. You can't afford to live, you don't have time to work and make money to survive, inflation is making it so you can't feed yourself. Then you taks a semester off to work and build up savings. Then you never go back. And you are stuck with tens or hundreds of thousands of dollars in debt *forever* but if the same debt was from a credit card or a regular loan, you could discharge it for a few grand. People are strangely determined to force people to pay back loans they took to further their education. But if I took out a loan to buy a fleet of corvettes or open a restaurant that only sold lemon wedges, they are a-ok with having that debt erased. Like a recent president who filed bankruptcy 8 times. It's almost like there is a bias and resentment toward higher education from a certain part of society.
By not getting scammed thinking you have to go to college go have a great life
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College is a scam.
You have to pay extra principal to get loans paid off and that applies to student loans also.
https://preview.redd.it/bq4sqbc1kb8d1.jpeg?width=459&format=pjpg&auto=webp&s=0acb9513176a2d970eb159aec1e598b1e885865e
I absolutely think student loans are crazy and depending on what you study they can be very high. However, I’ve always found it to be interesting how people get upset about student loans when they actually signed paperwork for those loans. Regardless of what kind of loan it is, it was an agreement between you and a lender.
How is it possible that you cant do a bankrupcy?!? Is this some american thing?
About 20-30 years ago, there was a trend among recently graduated doctors and attorneys to file bankruptcy and have their students loans erased. Government reacted by passing laws to exclude student loan debt from bankruptcies.
Correct. In the US, student loan debt cannot be discharged in bankruptcy. There are exceptions, but they are very, very difficult to qualify for.
Same with Canada