Author Topic: $170,000 Student Loan Disaster  (Read 12828 times)

mindy

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Re: $170,000 Student Loan Disaster
« Reply #50 on: March 09, 2017, 01:41:47 PM »
I'm in Canada so I don't understand all of the logistics but when I went to college (not university) I saw lots of people leaving high on the big once their student loans came in. While I worked part time, had two roomates and came out ahead.  How much of the 170K where living expenses vs school expenses? I think people need to be responsible for their life choices even at a young age. Maybe I'm being harsh but just my two cents...

I agree with this to a certain point. We can't baby young adults because they'll never learn and they won't take responsibility for their messes if we do that. However, I believe we also have to teach them about things like student loans so that this doesn't happen. Otherwise I believe we are at fault for these student loans disasters. I don't know how things are in Canada, but when I was in middle school and high school I was taught that student loans are an investment. In some cases where school can drastically increase your income, then sure, but most of the time, this doesn't seem to be the case. How can you expect young adults to know not to take out student loans and to look into other options if people who are supposed to know more than them (teachers, parents, etc) drill it into them that student loans are a good investment?

Also, finance is like a language. You can't start talking about ROI and expect someone who has never been taught finances to understand, just like you can't start speaking Japanese and expect a person who only knows English to understand. We need to start teaching students before they get to college the financial mumbo jumbo. Then, if they chose not to listen to what they learned in these classes, we can tell them they knew what they were doing and can get out of their own mess.

mm1970

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Re: $170,000 Student Loan Disaster
« Reply #51 on: March 09, 2017, 02:04:20 PM »
I'm in Canada so I don't understand all of the logistics but when I went to college (not university) I saw lots of people leaving high on the big once their student loans came in. While I worked part time, had two roomates and came out ahead.  How much of the 170K where living expenses vs school expenses? I think people need to be responsible for their life choices even at a young age. Maybe I'm being harsh but just my two cents...

I agree with this to a certain point. We can't baby young adults because they'll never learn and they won't take responsibility for their messes if we do that. However, I believe we also have to teach them about things like student loans so that this doesn't happen. Otherwise I believe we are at fault for these student loans disasters. I don't know how things are in Canada, but when I was in middle school and high school I was taught that student loans are an investment. In some cases where school can drastically increase your income, then sure, but most of the time, this doesn't seem to be the case. How can you expect young adults to know not to take out student loans and to look into other options if people who are supposed to know more than them (teachers, parents, etc) drill it into them that student loans are a good investment?

Also, finance is like a language. You can't start talking about ROI and expect someone who has never been taught finances to understand, just like you can't start speaking Japanese and expect a person who only knows English to understand. We need to start teaching students before they get to college the financial mumbo jumbo. Then, if they chose not to listen to what they learned in these classes, we can tell them they knew what they were doing and can get out of their own mess.

Yes, this is a very well written point, that I've tried to make (but badly).  I cannot compare student loans today to the late 80s, when I got them.  But back then, the loans went straight to the school, and what wasn't spent, got sent back.

So I lived on campus.  I got a certain amount of scholarships and loans, that ended up in my school account.  Once the dorm, the food plan, books/fees, and tuition were paid for - the rest of the loan money went back to the bank.  (I got an ROTC scholarship starting year 2, but it didn't pay out on time because of a medical test snafu.  The school demanded a deposit, which I paid out of my summer earnings working 60 hrs/ week.  Except I never got that money back...they just sent the extra loan money back to the bank.)

The "other stuff" (for me, you know, extra food, Kinkos for projects, clothing, medication, etc.) came from my part time job.  For some friends, like a college boyfriend - his parents gave him a credit card and a set budget and a list of what he could use it for.  (Basically food and gas.)

"Living high on the hog" seems so foreign to me based on my experience, because man, my credit card limit was $300.

On the other hand, tuition alone can cause you to borrow way too much money, not to mention housing.  I feel like there were large groups of parents who didn't know enough about loans/ jobs/ etc. to advise their kids.  My parents didn't, and I'm just lucky that I decided to go the ROTC route and am an engineer.