The Cycle of Poverty

My concern with taking out big loans for school is that I will be paying them back for the rest of my life.

I have noticed that some companies are under the illusion that they don't need to offer a salary that allows the student to pay-back what they owe.

It seems to be a game of how much they can squeeze you before you actually give in. My fear is the cycle of poverty comes from never really getting ahead of the debt we owe from student loans.

Essentially, we become slaves to the system. Locked in this corporate game of who has the highest degree and the bottom dwellers are treated as scum.

But the good news is... I just save a gob of money by switching to Gyco.

 

That would be Geico, not Gyco.

Also, those loans allow for more people to go to school - not less.

 

I got rid of my student loans by rolling them into the refinacing of my mortgage.
Jack

 

It is my belief that your employer should pay you a fair salary for your labors.
They are not required to solve your financial problems.
They are not "under the illusion," you are.
Only my opinion.
Jack

 

Re: Re: The Cycle of Poverty

Dave Ramsey would have a stroke reading that.

 

Yes, well, I'm no financial mastermind, that's for sure.

Jack

 

YES! YES! YES!

YES!

Laser, you are dead right to think VERY CAREFULLY before taking out large student loans.

Do anything you can to reduce that debt load. If at all possible, go to the STATE school where you are a resident. If you can, WORK while you are in school.

If you are working on your bachelor's degree, CLEP as much as you can. Do summer sessions to finish your degree as fast as possible. Go full time if you are having to borrow your living expenses.

If you are still acquiring lower division credit, investigate the local community college for as much general education credit as you can get.

Look for every scholarship or grant you think you might be eligible for. Ditto for employer reimbursement.

A hundred thousand dollars in debt in not at all unusual these days; you will pay on that for ever! Squeeze every nickel until Jefferson squeaks!

 

Here is another option...don't go to school and see if that works out better.

My wife wanted to get her AA and not work. I told her that I would not pay for it. She looked into scholarships and was able to get a theater scholarship. She did that for a year and did not like it. She then ran for student gov president and got a free ride for the second year. Total cost for an AA - some books (some were covered with the scholarships).

She maintained a 3.65 GPA, was a member of PTK and could have gone to a few Florida State colleges for free. One of the schools that offered a free ride to finish the next two years was FAU.

If you want something, you can make it work.

 

It appears that you are under the illusion that it's the company's responsibility to ensure you manage your money.
If you don't like what you are being paid - leave.

 

Great suggestion Randell. I know our local CC has quite a few tuition waivers they give out to people involved in activities ie student gov., newspaper, choir, etc. It isn't hard nor do you have to be gifted to get them here.

 

Regardless of my previous postings in this thread I would have to say that I agree wholeheartedly with this concern. I have started a 529 in hopes that it will relieve my daughter of the burden that I had to carry in paying off loans. Beyond that, I would like to say that I think that the government is making a mistake by not having some sort of program, open to everyone, in which they could trade their services for loan forgiveness, or partial forgiveness. I think that there are thousands of people who would work in some agency or company or on some project for two or three years (at low pay) in exchange for loan forgiveness. I used to hear about this for MDs. Get out of medical school and work for 3 or 4 years in a place of the governments choosing and you get to walk away from your debt. I would have done it if it had been available.
Jack

 

Re: Re: The Cycle of Poverty

Such a program exists - it's called the military

All she has to do is enlist - or go to a service academy.

 

Re: Re: Re: The Cycle of Poverty

Well, you may have said it in a joking manner but I know you're right. I think it's unfortunate that so few people see this as a viable option. Despite the fact that I never served in the military, I would seriously consider a plan in which everyone within a certain age range, both male and female, was required to serve for a period of time in some capacity. Not everyone is well suited for combat but there is certainly something useful that everyone could do.
Jack

 

Re: Re: Re: Re: The Cycle of Poverty

I wasn't joking.

Interesting thast you would ONLY consider it if EVERYBODY had to do it.

In sum: the government has a program to fund your daughter's education.

 

Concerned you should be not, Young Padawan. (Sorry, watched Episode III last night. I love Yoda.)

First, is never healthy for either the economy or the individual to be debt free. What you don't pay in interest you will pay in taxes.

Second, most student debt can be consolidated into very comfortable long term low interest payments.

Third, the interest you pay for student debt is tax deductible up to a certain limit.

Fourth, with the degree you acquire you will be able to make more money (if you choose wisely), therefore breaking the cycle of poverty.

 

Re: Re: Re: Re: Re: The Cycle of Poverty

You've misrepresented what I said. Please go back and reread my post. I did NOT say that I would only consider it under those circumstances. You supplied that word. Don't create a problem where none exists.
Jack

 

Re: Re: Re: Re: Re: Re: The Cycle of Poverty

"I would seriously consider a plan in which everyone within a certain age range, both male and female, was required to serve for a period of time in some capacity."

Jack - your words - verbatim.

 

Re: Re: Re: Re: Re: Re: Re: The Cycle of Poverty

Yes, you're right. Show me where I used the word only.
That was you're original point and you were wrong. Both times.
Jack

 

Re: Re: Re: Re: Re: Re: Re: Re: The Cycle of Poverty

I'm sorry Jack - I thought "everyone" meant "everyone"

Apparently you feel it does not.

 

I'm sorry that you're having such difficulty with this relatively simple concept. I believe that I can spell it out for you.

My original statement was that "I would seriously consider a plan in which everyone within a certain age range, both male and female, was required to serve for a period of time in some capacity."

I never said that this was the only plan that I would seriously consider.

For example, I would also seriously consider a plan in which people with certain physical disabilities could be exempt. People with other medical conditions might be exempt. People engaged in certain types of research might be exempt. People with certain religious beliefs might be exempt. There are a number of plans to which I would give serious consideration, not only the originally described plan. You might have learned this if you had asked a question rather than having made an assumption.

Better now?
Jack