First step -- stop calling it "student debt"

by Ben Reilly Tue Aug 12, 2014 6:49 am

The first thing we need to do to get serious about student debt? Stop calling it "student debt."

"College debt" or "education debt" might work. Anything but student debt -- because not just students but entire families are paying the cost of our broken system for funding higher education.

Case in point: The other day, one of the top stories on CNN.com was about two grieving parents who lost their child but are still stuck with her student loan bills.

This story represents so much about what is wrong with our system of financing higher education -- not to mention our national priorities.

The full story is worth reading, but here is the short version: Steve Mason co-signed $100,000 worth of student loans for his daughter, Lisa. When she passed away, her parents were stuck with the debt, which had ballooned to nearly $200,000.

And now, these two parents, who took in three young grandchildren, are almost utterly without options.

If it were not for a George W. Bush-era law limiting financial protections for consumers, bankruptcy would be their last resort. But today, thanks to provisions in the 2005 Bankruptcy Bill, private student loans are one of the only forms of debt that cannot be discharged under any circumstances.

http://www.cnn.com/2014/07/31/opinion/jones-student-education-loan-debt/

Column by Van Jones, whose career was nearly ruined by American conservative activists ...

by Guest Tue Aug 12, 2014 9:27 am

Good grief, those poor grandparents. I only took on one grandaughter and that's hard enough.

by veya_victaous Tue Aug 12, 2014 11:26 am

that is fucked up

here not only is the cost a fraction of what it is in the USA but you get the 'student loan' off the gov't and pay it back with a 'personal levy' (the % taken out of your pay with your tax goes up as you earn more but you just repay what you owe... plus 'low' interest now... I still got some owing Neutral

)

IF you never earn over the minimum cap you never have to pay anything back and if you are in a low paying but still qualified job like nurse or teacher then you may never actually pay it off and it 'disappears' when you retire.

by Guest Tue Aug 12, 2014 12:19 pm

veya_victaous wrote:that is fucked up

here not only is the cost a fraction of what it is in the USA but you get the 'student loan' off the gov't and pay it back with a 'personal levy' (the % taken out of your pay with your tax goes up as you earn more but you just repay what you owe... plus 'low' interest now... I still got some owing )

IF you never earn over the minimum cap you never have to pay anything back and if you are in a low paying but still qualified job like nurse or teacher then you may never actually pay it off and it 'disappears' when you retire.

Thats how it is here too. You have to earn a certain amount before paying anything back. Still not good enough, the cost of a university or postgrad education is horrific.

A course I am looking at doing is £5000 pale

by Ben Reilly Tue Aug 12, 2014 5:33 pm

Making money from people who can afford it is one thing; from people who have no money, it's just vampirism.

by Original Quill Tue Aug 12, 2014 5:56 pm

Student loans are at least at non-usurious rates. Ever looked into payday loans? Short term loans at 1100%/annum.

by veya_victaous Tue Aug 12, 2014 11:51 pm

Original Quill wrote:Student loans are at least at non-usurious rates. Ever looked into payday loans? Short term loans at 1100%/annum.

Holy fuck...
we have those pay day loans here too the highest I have seen, worked out to be about 600% per annum and the company has since been investigated and I believe dropped their rate.
Most are still in the 300%-400% range, which is similar with the pawn brokers.

all a bit of a rip off if you ask me. Neutral

by Irn Bru Wed Aug 13, 2014 9:11 am

No tuition fees for students in Scotland. Education for children is a priority for the Scottish government and so it should be.
The rest of the UK can do the same - just find the money from somewhere else.

by Guest Wed Aug 13, 2014 9:39 am

Irn Bru wrote:No tuition fees for students in Scotland. Education for children is a priority for the Scottish government and so it should be.
The rest of the UK can do the same - just find the money from somewhere else.

Like getting the tax that should be paid by multinationals and isn't.

by Original Quill Wed Aug 13, 2014 5:09 pm

Irn Bru wrote:No tuition fees for students in Scotland. Education for children is a priority for the Scottish government and so it should be.
The rest of the UK can do the same - just find the money from somewhere else.

I rarely paid tuition, as well. Anytime you work for the university, tuition is free. So I just got a job at whatever university I was attending. Mostly teaching...but often, computer programming.

But tuition is only a small part of the problem. Living (rent, food, vehicles, etc.) is what consumes most of the money.

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First step -- stop calling it "student debt"

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