College Loans (1 Viewer)

Saint_Ward

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Hey, so the boy is off the college in the fall (that's the plan so far, at least....)

He's already set with a nice scholarship and the usual stafford loan. However, he'll need a few k each semester that requires a Federal Direct PLUS Loan, or a private loan.

I sort of forgot to look into this the last couple of months, I have no idea what else has been going on..... oh. Anyway, anyone have any experience with comparing a Federal Direct PLUS loan as a parent vs a private loan and probably co-signing or something. My credit is excellent. Are there better deals for private loans? The PLUS loan is like a 7.08% interest rate.
 
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Saint_Ward

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$3,000 a semester is $500/month.

He could easily make that working through school part time.

Avoiding the debt is way better than graduating with it.
They want their money the first week of classes. He only just got back to work for the summer, due to the pandemic. So, he lost out on a solid month of earning potential. Also, semesters are like 4 months long, not 6. He can start saving up for his sophomore year, which is our plan. That, and maybe he would make a good RA and get free room. ;)

But, I'm with you on him doing part time work, especially if he can do it for his program (theater) and build some relationships or work the cafeteria and hope they give free food for it too. ha. But, you do the loan, and make early payments. Less stress to do it that way then to try to pay up front and then be left handing if you can't make enough up front.
 
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Saint_Ward

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I'm right in the sweet spot: doing too well to get any aid, not doing so well that it's not ******* painful. :hihi:

The only thing that keeps me going is that my parents really took care of my education and I'm going to do the same for my kids hell or high water. So far, god bless, they never act spoiled and have more than held up their end.

The level of commitment is absolutely fact-specific and for everyone to make in their own good conscience.

Now, I need a drink. :hihi:
I liked to joke to my dad that I saved them tens of thousands of dollars. I got a full ride academic scholarship, covered tuition, room and board, fees, and a book/extras allowance.

He decided my old 5th Avenue wouldn't make it in the deep snow of the Upper Penninsula of Michigan, so he got a sweet deal leasing a Ford Ranger. He paid for that, and would send me like $20/week (it was cute, how he'd send me little hand written notes).. I told him, paying for that for 4 years, and giving me even $20/week was still less than one year of college.
 

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That's the only way to be. But, probably in a few months, you're gonna be doing the same for other peoples' kids too.
Which, in all honesty is going to be what is needed to get the economy going again. Boomers are at the end of their spending power, gen x is the only one with any real spending power. Gen z and millennials are too buried under college debt to really drive the economy. So the government is going to have to either have their highest earners sitting on the sideline giving banks a fat bottom line, or work with people to free up that income to put towards purchasing power.

Also, when people say that the government can’t afford it, people who do not have a college degree or at least partial trade education pay very little in taxes, and generally are reliant on public money to support them in some way at times.
 

SystemShock

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My oldest just graduated. He has no prospect of a job, but at least he has no student loans and a 2013 Mustang :hihi:

My youngest wants to stay in México. He can get citizenship through me, so free college.
 

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$3,000 a semester is $500/month.

He could easily make that working through school part time.

Avoiding the debt is way better than graduating with it.
Problem with that though is work study is based on need. Depending on their received allotment and the number of students with lower EFCs, work study can run out quickly.
 

brandon8283

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Problem with that though is work study is based on need. Depending on their received allotment and the number of students with lower EFCs, work study can run out quickly.
Work study is not the only job available...
 

Grandadmiral

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Work study is not the only job available...
For most schools these days it is. After budget cuts, their departmental budgets are sacred unless there's some endowment available or unless the school writes off the balance owed, which depending on the school, affects the bottom line. I know we refused to do so. Hell, we had to fight with the business office every year when they wanted to cap our discount rate at 25% to compete with schools offering a 40% rate or more.
 
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SaintJ

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That's the only way to be. But, probably in a few months, you're gonna be doing the same for other peoples' kids too.
Anybody who pays property taxes is already paying for kids' public schools.

Better education benefits every one of us.

And there's so much money we spend for nothing on military boondoggles and leave so much on the table with our friendly billionaires (free market incentive!), we could easily afford to educate the entire US population decently for free, like much of the civilized world, but we don't want to do that.
 

jsberry

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we could easily afford to educate the entire US population decently for free, like much of the civilized world, but we don't want to do that.
You're darn right we don't want to do that. There is a different economic dynamic regarding colleges that does not apply to the military. When we encourage people to go to college by funding their tuition, that gives universities the green light to jack up their tuition. It's an externality: the people deciding whether the student will attend (the student and the university) need to worry about the price. So, honest practical people who have saved to actually pay for their own kids' college have to pay higher tuition - twice. This has been happening already for decades, but it would be worse by making "free college" official.

BTW, "free college" works in Europe because they have standards. Bad students can't go. We don't have that here.
 

SaintJ

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You're darn right we don't want to do that. There is a different economic dynamic regarding colleges that does not apply to the military. When we encourage people to go to college by funding their tuition, that gives universities the green light to jack up their tuition. It's an externality: the people deciding whether the student will attend (the student and the university) need to worry about the price. So, honest practical people who have saved to actually pay for their own kids' college have to pay higher tuition - twice. This has been happening already for decades, but it would be worse by making "free college" official.
:smilielol:Have you studied the military spending process recently? There is a tiny oligopoly of manufacturers that bid for giant, multi-multi-multi billion dollar projects, over which they retain incredible influence starting with the original design. Not sure how effective those price controls have been since, say, the Civil War.

BTW, "free college" works in Europe because they have standards. Bad students can't go. We don't have that here.
Yes, we do. They're called "grades." And properly run state college and university systems can certainly manage the whole process.
 

brandon8283

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For most schools these days it is. After budget cuts, their departmental budgets are sacred unless there's some endowment available or unless the school writes off the balance owed, which depending on the school, affects the bottom line. I know we refused to do so. Hell, we had to fight with the business office every year when they wanted to cap our discount rate at 25% to compete with schools offering a 40% rate or more.
Have you ever heard of Pizza Hut?
 

jsberry

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:smilielol:Have you studied the military spending process recently? There is a tiny oligopoly of manufacturers that bid for giant, multi-multi-multi billion dollar projects, over which they retain incredible influence starting with the original design. Not sure how effective those price controls have been since, say, the Civil War.

Yes, we do. They're called "grades." And properly run state college and university systems can certainly manage the whole process.
Of course military spending is screwed up, but in a very different way. The "free college" concepts allows any private citizen to run up a bill for a mostly worthless degree without regard for the cost.

And, that concept of "grades" is hopelessly naive. Any screw-up can get into a "college" (not talking Ivy-League here) for a mostly worthless degree. If somebody is paying, the college will accept them.
 

SystemShock

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You're darn right we don't want to do that. There is a different economic dynamic regarding colleges that does not apply to the military. When we encourage people to go to college by funding their tuition, that gives universities the green light to jack up their tuition. It's an externality: the people deciding whether the student will attend (the student and the university) need to worry about the price. So, honest practical people who have saved to actually pay for their own kids' college have to pay higher tuition - twice. This has been happening already for decades, but it would be worse by making "free college" official.

BTW, "free college" works in Europe because they have standards. Bad students can't go. We don't have that here.
"Honest practical people"... I guess as opposed to dishonest unpractical people who live paycheck to paycheck and can't save.

This idea that you pay for someone else's tuition... but even if we go with that idea, all the things you pay for, which not even benefit people in the U.S....

Free education works in other countries because, in other countries, they don't have social welfare phobia like we have in the U.S. (and by welfare I don't mean food stamps, I mean the general welfare mentioned in the preamble to the U.S. Constitution).
 

brandon8283

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We're obviously speaking two different things. I'm speaking specifically on on-campus employment.
I get that. But I'm not sure why. I said he could work through college to make up the $3k. I didn't say he had to find a job on campus.
 
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Saint_Ward

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Of course military spending is screwed up, but in a very different way. The "free college" concepts allows any private citizen to run up a bill for a mostly worthless degree without regard for the cost.

And, that concept of "grades" is hopelessly naive. Any screw-up can get into a "college" (not talking Ivy-League here) for a mostly worthless degree. If somebody is paying, the college will accept them.
You hijacked my thread, and I'm not thrilled with that. However...

The benefits of state funded, and a possible federal funded college is that you can set standards for cost, and quality. Basically, you have to go for an accredited degree program.

You can set it up where it only covers the cost of Tuition. Room and board, meal plans, extras, can be whatever. So, people can't just run up the bill. Most state schools are pretty similar in tuition structures, within a bit. Private schools and out of state throw it out of whack. Same for "for profit" schools. At most, you'd cover tuition and maybe a room and board allowance. And the Fed/State sets rules on what extras a school can or can't charge.

It's not complicated and it won't be at the whim of a "screw up" student. Our current set up, of just backing whatever loans, is what encourages running up the debt. Prepaying for it, and regulating it, actually would control costs.

Anyway, that's not really a discussion for here. I just asked if anyone had any experience with PLUS loans vs private loans. The. End.

So, I"m going to guess that your answer is "NO".
 

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