How Student Debt Can Ruin Home Buying Dreams

Pull your boots up, grab a shovel and start digging yourself out of debt. I don?t get these sob stories, be accountable for your actions. It won?t happen overnight but gotta keep paying down that debt/loan.
 
One of the many problems with college is the countless useless majors. Perhaps this is done already colleges should be required to show kids how much money they will make in their desired field/major and how long it will take to pay of their debt and perhaps telling them the probability of landing a job in their field.

There needs to be more trade schools and this whole concept of GEs needs to go out the window.

And the government needs to stop guaranteeing student debt to keep costs from continuing to spiral out of control. As long as this is the case, colleges will just continue to raise tuition at ridiculous annual rates
 
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qwerty said:
And the government needs to stop guaranteeing student debt to keep costs from continuing to spiral out of control. As long as this is the case, colleges will just continue to raise tuition at ridiculous annual rates

THIS is everything. It is the solution. And we need to stop handing out hundreds of thousands of dollars to people like it's candy. If I make $40,000 a year, a credit card company would be insane to give me an unlimited credit line so I can rack up $400k or $500k in debt. But that's what these private school loan lenders are doing now simply because it's backed by the government. WHY would you allow a sociology major to take out $200-300k in student loans? Fine if you give that credit line to a kid going to medical school or law school that will have the high income earning potential.

And I don't understand all the whining. YOU borrowed the money, did you not think you'd have to pay it back? Everybody wants their student loans "forgiven" - typical American attitude. Let me borrow all this $$ but I didn't know I'd have to pay it back. can't I just file bankruptcy and make it all go away so that I can go back to spending irresponsibly on the latest iPhone and the newest flat screen high def TV.

I worked my ass off to pay my $300k of student loans off. A lot of sacrifice and budgeting but I paid off every dime with hard work. When I borrowed the $$ I knew I had to pay it off. I wasn't expecting the government to bail me out, "forgive" my debt. So I have no sympathy for these whiners...
 
Paris said:
qwerty said:
And the government needs to stop guaranteeing student debt to keep costs from continuing to spiral out of control. As long as this is the case, colleges will just continue to raise tuition at ridiculous annual rates

THIS is everything. It is the solution. And we need to stop handing out hundreds of thousands of dollars to people like it's candy. If I make $40,000 a year, a credit card company would be insane to give me an unlimited credit line so I can rack up $400k or $500k in debt. But that's what these private school loan lenders are doing now simply because it's backed by the government. WHY would you allow a sociology major to take out $200-300k in student loans? Fine if you give that credit line to a kid going to medical school or law school that will have the high income earning potential.

And I don't understand all the whining. YOU borrowed the money, did you not think you'd have to pay it back? Everybody wants their student loans "forgiven" - typical American attitude. Let me borrow all this $$ but I didn't know I'd have to pay it back. can't I just file bankruptcy and make it all go away so that I can go back to spending irresponsibly on the latest iPhone and the newest flat screen high def TV.

I worked my ass off to pay my $300k of student loans off. A lot of sacrifice and budgeting but I paid off every dime with hard work. When I borrowed the $$ I knew I had to pay it off. I wasn't expecting the government to bail me out, "forgive" my debt. So I have no sympathy for these whiners...

while i am in 100% agreement with you, you could almost argue that it's an exercise in predatory lending where 17-18 year olds (who have no idea what they want to do or how they are going to pay the money back) are given these unlimited check books to just spend, spend, spend in the short term until they are locked in for the long term.

these government backed loans are either going to be the best investment by the government by having locked these kids in for 20 years or the worst by having everyone default on their debt obligations in the next recession (or causing the next recession).
 
Lots of ?soft? majors like sociology, art history, other liberal arts on Wall Street and in tech from the Ivy?s.  Don?t hate the major. Hate the schools.
 
bones said:
Lots of ?soft? majors like sociology, art history, other liberal arts on Wall Street and in tech from the Ivy?s.  Don?t hate the major. Hate the schools.

This seems like a bit of a outlier, you are already starting with the best and brightest the US has to offer. Probably the exception.
 
JIMHO, too much of the education complex has become the equivalent of MLM.  You march to get advanced degrees were the bulk of the limited jobs are being an instructor in a college for the field. 

Then there is the over reliance and demand for credntialization and advanced degrees.  Take a good look around your elemnetary school, there is no shortage of advance degrees and PhDs. Its basically a requirement to be anything other than a classroom teacher.

Ivy soft majors work on wall street because of the contacts from the Ivy and confidence in the basic education.  That same degree from Dirtville State U has neither and is basically a high school diploma.  The question is how far up the named school chain does that carry which varies by degree.
 
I agree. A big part of the blame should also be predatory lending. It is what led to the housing crash with all the subprime lending. We need to stop backing all these inappropriate private student loans. If the kids simply can?t get the $$ then colleges cant so easily jack up their prices.
And parents need to stop telling their kids they can choose the Bentley of colleges when they can only afford the in state public college or have to consider community college first with a transfer.

I also think it?s this false notion among the public that advanced degrees = higher pay. And no one has a plan. No one is intentional going into college about what exactly they want to do, or at least have an idea. So there is a lot of wasted time, wasted education all which rack up unnecessary debt.
I had a plan to be a physician at a young age. So I knew what I needed to do to get there. But some of the most successful people I know only have an undergraduate degree. Most of the time from a ?no name? school. And half of them came from another country and they don?t even have any college education. They have street smarts and are natural entrepreneurs.
My husband works for a fortune 50 company and they simply cannot find the employees they need with the skill set required in America. They literally have to hire people in other countries because the skill set (acquired simply from a trade school) is lacking. Why is sociology such a popular major, seriously?
Getting a high priced education and then ending up working retail or Uber and demanding a $20/hr minimum wage to work at McDonalds is not the answer people.
Our high schools clearly need to do a better job at encouraging career planning.
 
They are doing career planning, their model is broken because their measure of success is how many go to co!lege.

Graduated college and drive for Uber == success.
No college but own a plumbing business == failure.

 
Paris

There are ?some? companies that hire from overseas because they can get someone for less pay. (Believe me, trust me I know)
 
Meh...

Assuming college at 19 and graduating at 25, given the cost of a decent townhome in OC ($600k in Irvine) that's $4k per month FHA 3% down (PITIHOA) or $3,800 with 5% down. In order to qualify just for the house payment, you need 1 borrower at $10k per month with zero debt. Not many recent grads are going to make $120kpy. Sure, if they have student loans and car debt, you might need 2 buyers making $80k per year to qualify - a more reasonable circumstance. When there are plenty of very good rentals at $3,000 per month that also don't require a significant cash investment what then is the drive to purchase? Why would I want to live in Irvine in a Condo for $3,800 per month, when I can live in Newport Beach with an ocean view for $3,000?

I know there's been a great deal of news about that "failure to launch" dude in Upstate New York - the one whose parents had to get a judge to evict their spawn from their basement. I ran the numbers there as well. You can buy a house in good condition, put $4,000 into the deal, and have a $900 house payment. At $15.00 per hour minimum wage just about anyone can afford to get by there - but not this guy? The issue then isn't cash, or housing stock, or payment. It remains the same - lack of motivation and/or a work ethic.

This brew-ha-ha over student loan debt is merely to nudge the population towards acceptance of blanket debt forgiveness, and legislating the ability to discharge student loan debt via bankruptcy. Universities are churning out 14th Century French Poetry majors with a 2nd doctorate in "human studies" by the bushel, all of them with $200k of 100% self inflicted student loan debt. Precious few of these graduates have any clue what real work entails. A woefully under educated population that grows every May/June is a recipe for disaster. I'm not going to blame student loan debt for lower 25-30 year old home buyers. There are other reasons that should be addressed first.

My .02c
 
eyephone said:
Paris

There are ?some? companies that hire from overseas because they can get someone for less pay. (Believe me, trust me I know)

Oh I don?t doubt that. But there is also a shortage of people skilled in STEM locally. So higher skill set, non-entitled attitude, hard workers, lower pay = no brainer. Wouldn?t you higher outside the US too if you were the CEO?
 
Paris said:
eyephone said:
Paris

There are ?some? companies that hire from overseas because they can get someone for less pay. (Believe me, trust me I know)

Oh I don?t doubt that. But there is also a shortage of people skilled in STEM locally. So higher skill set, non-entitled attitude, hard workers, lower pay = no brainer. Wouldn?t you higher outside the US too if you were the CEO?

UCSF outsourced approximately 49 tech jobs to India https://youtu.be/VkJdwWhlN-E

60 minutes special outsourced jobs https://youtu.be/envbbUc4LhU


 
qwerty said:
One of the many problems with college is the countless useless majors. Perhaps this is done already colleges should be required to show kids how much money they will make in their desired field/major and how long it will take to pay of their debt and perhaps telling them the probability of landing a job in their field.

There needs to be more trade schools and this whole concept of GEs needs to go out the window.

And the government needs to stop guaranteeing student debt to keep costs from continuing to spiral out of control. As long as this is the case, colleges will just continue to raise tuition at ridiculous annual rates

I like trade schools too but I think one of the main reasons vocational education died is because of the decline of manufacturing. People used to get vocational degrees and make a good living here in so cal (buy house in 20s) working for Douglas Aircraft, Lockheed, General Motors, etc. but all of those jobs are gone.
 
Paris view the CBS video. The guy got replaced for half of his salary and no benefits.

Another guy at Disney had to train his replacement. The CEO of Disney Bob Igor, said having their employees training their replacement was a mistake and he feels sorry for that and apologizes for that.


There you go-yo.
 
eyephone said:
Paris view the CBS video. The guy got replaced for half of his salary and no benefits.

Another guy at Disney had to train his replacement. The CEO of Disney said having their employees training their replacement was a mistake and he feels sorry for that and apologizes for that.


There you go-yo.

The Disney outsourcing was a complete abuse of the H1B visa program.  It was never meant to replace American workers, but to supplement hiring when no American workers could be found. 

Disney's outrageous actions helped bring attention to the problem in the mainstream media, and a lot of the push to reform H1B visas is thanks to the Haus of Mouse.
 
Bro it?s happening everywhere not just Disney.

Practically the entire IT department at UCSF got outsourced. (Jeesh)
 
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