Reply to Canceling $10k of student loan debt is stupid.

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[quote=Anonymous][quote=Anonymous][quote=Anonymous]I do not think they should cancel the loans.

Our loans were 6.5% interest and they also front load the interest and structure it so that you don't pay anything towards the principal in the beginning and the principal starts ballooning.

I would suggest that we offer lower interest loans for certain majors and careers. Nursing, teaching, engineering, etc. Generic liberal arts majors- no. (And I was a liberal arts major). I also think they should be structured differently with the interest throughout the loan instead of front loaded. Front loading the interest on a mortgage is different because they assume you'll sell within 7 years. But with student loans, you can't discharge. We also weren't able to consolidate and lower the interest rate.[/quote]

[b]This is why they need to teach personal finance 101 as a required course in college across all institutions in order for students to graduate. [/b] It's called amortization.

The reason you get an amortized loan for everything from a mortgage, to an auto loan, to a student loan is because it allows the borrower to have a fixed payment over the course of the entire loan.  An unamortized loan requires balloon payments that could really mess people up.

Truly shocking people can leave university with their $250k degrees and not even know about the basic concept of an amortized loan. What the hell do they teach these days at university?  Apparently a bunch of useless stuff.[/quote]

It needs to be in high school BEFORE 18yo KIDS take out these loans. Because unfortunately a lot of times the parents are not all that financially literate either.

But still, the cost of college increases every year, outpacing increases in inflation, wages, etc.  That needs to be addressed too, even state universities have gotten out of control.[/quote]

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