Category: Student Loans

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Twitter Thread Captures Just How Impossible It Is to Pay off Student Loans

If you’re one of the millions of Americans who has student loan debt, the mere mention of the phrase “student loans” is probably enough to send you into a panic. The loans, which can be the only way for some people to afford higher education, often wind up being incredibly difficult to get pay off – even if you make consistent payments on time for years.

Twitter used Lacy M. Johnson posted a tweet about her own student loan debt situation, and it’s all too relatable.

Other people responded to Lacy’s tweet with their own student loan stories, and let’s just say they’re…bleak.

“Started out owing $120k,” one person wrote. “7 years, never missed a payment. Got it all the way down to $137k!”

Another wrote: “Graduated grad school in 08 with nearly $100k in debt, have paid over $100k since then in interest, still owe $100k.”

“Borrowed $97k, been paying for 13 years. Checked yesterday. I still owe $146k,” yet another wrote.

These stories aren’t exactly surprising — student loan debt is the second-largest type of consumer debt in the country, and it has only continued to grow in recent years as colleges and universities raise tuition much faster than either inflation or wage growth.

Others chimed in to reply to Lacy’s tweet with their experiences of going to college BEFORE it was so expensive. “I cannot imagine doing it in today’s world,” one person wrote.

Student loans are a dark cloud over folks’ heads, and many people expect to die without ever paying off the debt — unless a miracle occurs, like winning the lottery or a new student loan forgiveness policy.

Sigh. At least we’re all in it together…

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Economists Say That Forgiving Student Debt Could Give the Economy a Major Boost

I don’t know if anyone in power will take these recommendations seriously, but a headline like this is probably music to the ears of the millions of people out there are struggling to pay off their student loans.

Although different politicians have different ideas and plans about how much student loan debt they would forgive (or not), economists say that forgiving student debt could boost the economy in huge ways while also fighting income inequality.

Economists argue that the debt forgiveness could boost the economy because so many Americans are limiting their life decisions based on their student loans.

A prime example is Laura Greenwood, 30, of Montpelier, Vermont. Greenwood works for the state education agency in Vermont, making $63,000 a year. She said, “I make probably a better salary than a lot of my peers.” But, she added about a major life decision, “Children, it’s not about if you want them. It’s about can you afford them?”

Greenwood said she owes $96,000 in student loans for college and graduate school. She admits that this is a major hindrance to the decision to have kids with her partner. She said, “We’re interested in having kids, but just cost of living and all our other bills and then the student loans, it’s just like the final straw.”

Greenwood added that her debt makes the possibility of having children seem impossible.

Stressed

Economists argue that if people like Greenwood and others saddled with debt had that anchor removed, more of them would buy houses, have kids, and start businesses.

Lawrence Yun, the National Association of Realtors chief economist, said, “In the short term, it would be very positive for the housing market. Home sales could be, say, 300,000 higher annually if people were not saddled with large student debt.” According to Yun, this would be “a boost to the housing sector as well as the economy.”

William Foster, a vice president with Moody’s, said about total loan forgiveness, “There’ve been some estimates that U.S. real GDP could be boosted on average by $86 billion to $108 billion per year.” He also said, “Student loans are now contributing to what’s perceived as lower economic prospects for younger Americans.”

Stressed?

On the flip side of those seemingly encouraging statements is the fact that loan debt forgiveness would be expensive. Foster said the total for student loan debt is about $1.5 trillion – which is why it’s such a drain on the economy. He claims the federal government would have to give up $85 billion in annual revenue that it collects from these loans, which would result in a wider fiscal deficit (not that it seems to matter these days).

What do you think about this controversial and divisive topic? Should student debt loan be forgiven? Or partially forgiven? Or do you think that these former students need to pay in full?

Let us know what you think in the comments.

The post Economists Say That Forgiving Student Debt Could Give the Economy a Major Boost appeared first on UberFacts.

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These Stories Illustrate How Powerfully the Student Debt System Negatively Affects People’s Lives

America’s student debt crisis is a hot-button issue not just for graduates and universities, but for politicians as well. Some are arguing for debt forgiveness and eventually free education, while others believe the system is working just fine the way it has been for years.

All of these posts will make you feel for these folks and it might even remind you of your own financial situation.

Take a look.

1. Sad, but true

2. Not the same

3. Yikes

4. In a nutshell

5. Mystifying

6. The short end of the stick

7. A trap

8. Doesn’t seem right…

9. Punished for success

10. Triggered

11. No way around the truth

12. That is unbelievable

13. F it all

14. Like a prison

What do you think about this incredibly divisive topic?

The post These Stories Illustrate How Powerfully the Student Debt System Negatively Affects People’s Lives appeared first on UberFacts.

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Billionaire Pledges to Pay off Student Debt for Morehouse College’s ENTIRE 2019 Graduating Class

Graduating from college is an incredible milestone in anyone’s life, but it’s sadly often marred by a lot of anxiety about what comes next. The looming shadow of trying to repay a seemingly endless amount of student loans for years to come is especially daunting.

Thankfully, the 2019 graduating class of Morehouse College in Atlanta, Georgia, won’t have to worry about that – during his commencement speech at Morehouse, billionaire Robert F. Smith announced that he would be paying off ALL the student debt for Morehouse’s class of 2019!

Smith said during his speech, “On behalf of the eight generations of my family that have been in this country, we’re gonna put a little fuel in your bus. This is my class, 2019. And my family is making a grant to eliminate their student loans.”

This guy’s reaction pretty much sums up the way everyone at the graduation felt about the news.

Take a look at the reaction from the graduating students.

A spokesperson for Smith said the billionaire is “thrilled to invest in these young people and their future.” Robert F. Smith made his fortune by founding a private equity firm called Vista Equity Partners that primarily buys and sells software firms. He graduated from Cornell and has a Master’s degree from Columbia.

Smith told the students, “You are responsible for building strong, safe places where our young brothers and sisters can grow with confidence. Watch and learn from positive role models, and believe that they too are entitled to the American dream.”

There’s no official confirmation of the size of Smith’s gift yet, but it’s believed to be in the neighborhood of $40 million.

What an incredibly generous gesture. Good luck, Class of 2019!

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