Quote:
Originally Posted by Jibartik
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whats the plan moving forward after we bail out the student loans, a new system?
Surely we will not continue the one that is causing people to need bailouts, right?
Right?
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System needs an overhaul for sure. I never understood why federal student loans carried any interest while being actively paid off … or why you have to pay off the interest before you can make extra payments on the principle.
I think I had about 70k in med school debt after other scholarship opportunities are factored in. Funnily after 10 years of paying on that initial 70k debt (no job/income possible during four years of school and could not afford anything 3 years on a medical resident doctor in training while interest compounded) now to the tune of 110k paid … I still have 30k left in debt. Thankfully my career choice and educational trajectory left me with a job that could handle that payment while otherwise having a good standard of living.
When governmentments invest in the education of their citizens it increases the GDP and the taxable income of its receiving citizens a lot more than the original investment. The government isn’t accumulating debt … it is making wise investments in its future monetarily.
I can’t remember where in the US but it was a county in a red state that tax-funded community college tuition (not even loans) for local residents. The net outcome over time was a greater revenue gain than the initial investment by a factor of 2-3:1. It stimulated the economy, created education jobs, and increased the net income for the broader population.
Why the US at large hasn’t figured this out yet is beyond me.