Are student loans actually beneficial? Or. Are they traps in the guise of a possible better life?

[Anonymous]

Just read an article stating that Biden would be waiving off some amount on student loans.

The students with Pell Grant, $20,000 to be waived off. And those without the Grant, $10,000 to be waived off.

[Anonymous]

As someone who works for the student loan company in the UK, I will say the US student loans being privatised is cruel and unusual.

Here in the UK we're a government run agency. You don't pay any student loan back until you earn over a certain annual salary which we base on the cost of living, so it generally increases year by year. Meaning you've got plenty of time to get your shit together after graduating without the pressure of repayments.

Beyond that though, it's still a loan which has interest and will build up over time. They will be written off after 25 years, even if you never pay any money back. If you die they're written off too, so no worries for your family.

However there are some people who make enough money to qualify to repay, but not enough to cover the interest. So at that point is essentially a "student tax" that they'll need to pay for 25 years unless they can improve their salary. It has it's ups and downs.

[Opinion Owner]

It's also worth mentioning that there are plenty of rewarding and necessary jobs that can be done without ever attending college/uni

[NewsReader]

It's a bad thing actually. There is too much for me to write so I suggest listening to a podcast episode instead. The following did a very good job at explaining the many factors that are involved in the whole forgiveness thing. It's more complex than some people think.

Podcast: Words & Numbers

Episode 290

https://wordsandnumbers.libsyn.com/episode-290-what-we-really-think

[NewsReader]

Just curious, did you listen to the episode? What are your thoughts?

[Asker]

I liked how they explained how the student loans forgived right now will be paid by the country through one or the other way.

How the sprial is about to start. In fact, I really do believe a college is really like a vacation if you think like it.

Loan forgived, influx of students, easy subjects taken, little to no jobs, but the Govt. is still paying the bills, hence its right to ask questions. The whole typical spiral.
The episode is really quite amazing. And the podcast.
Amazing guys.
Thanks for the podcast. Its really worth it.

[OlderAndWiser]

Student loans are beneficial in helping some people to get an education they would never otherwise been able to access. I put myself through law school - not $1 from my family - by using savings, working part-time, and getting student loans. And I repaid those loans 100%.

I think it sends a very horrible message to young people to forgve any amount of their student loans and the only real reason to do this is to try to buy votes in November.

[LazerBean]

They can be beneficial if you are smart. Unfortunately, most people are not smart.

[Anonymous]

M parents absolutely fucked my credit by opening a credit card in my name and letting it stay delinquint when I was in high school and had no job. I didn't even know it was open, but I would have gotten a job and paid it off if I did. College repayment is helping rebuild my credit, so I think taking out a loan is one of the best things I've done.

[Asker]

Damn bro. I feel for you man, and the opposite for your parents.

[menina]

I think they're traps since you'll have to pay them back anyways. I just know that would get crazy if I had to spend 15 years or more paying for a student loan.

I'm really glad I didn't have to ask for one when I was a college student.

[Avicenna]

The loans aren't the real issue- the underlying problem is the high cost of tuition that ensnares so many people in the debt trap. Bear in mind that there is often the need to borrow money to pay for living expenses as well.

[exitseven]

I was shocjed when I found out the interest rates on student loans. I thought that it was only 1 or 2 percent and kids could take as long as they wanted to pay it back.

[OddBeMe]

Its the easiest loan I’ve had to deal with. Constant low percent loan. doesn't affect credit score.