I’ve read 70% of students have loans.
Where did you see the 70% number? Seems high but I’d like to read more.
I don’t know how accurate this is https://ticas.org/files/pub_files/qf_about_student_debt.pdf
Is this debate about government loans or private ones also?
This is about federally funded loans only.
For undergraduate, there are limits to the amounts permitted for federal loans so doesn’t that limit anyone from having high loans after undergrad unless they also take out private loans?
Also, how much is considered a lot of loans to have after undergrad?
How does the plus loan work?
Independent undergrad students have $4000-$5000 a year more in Direct Loans than students who are dependent.
In addition, some students take the Direct Loans for grad school as well.
And then there are those who use them for professional schools.
For undergrad, a regular dependent student would have max $27,000 Direct Loans for undergrad school. But an independent undergrad could have quite a bit more,
Re: Plus Loans. Plus loans are parent loans, not student loans. Student files a FAFSA and then parent can apply for Parent Plus loans up to the cost of attendance. Qualifying is not hard.
How much is too much undergrad debt? In my opinion if you need loans in excess of the Direct Loans, you are taking too much out in loans.
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It’s worth it to point out (again?,) that even the Fed 27k is problematic for many.
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are PhDs usually the only post Bachelor’s Degree, where people are able to get some aid? Otherwise, for most Masters Degrees, MBA, JD, MD, etc, most people are required to pay full price and if they can’t afford it, they must take out lots of loans? Would these loans also be direct or would they need to be private loans?
But those same people will have credit card debt, car payments, rent or mortgages. Debt is part of life. If you can’t pay off $27,000 in debt 10 years or longer then don’t take it out in the first place.
I’m sort of confused by your line of questions. This thread is about the possibility of federal loan forgiveness. You need to take your other questions to your own thread…not this one.
It’s about federal debt. Is most federal debt from undergraduate degrees or would debt from Masters, MBA, JD, MD Degrees also be federal loans?
Most federal student loan debt is for undergraduate, due to the large number of undergraduate borrowers. However, the smaller number of professional school students can borrow much greater amounts of debt per person.
Giant debt for undergraduate typically include private loans (usually cosigned by parents) or parent loans.
I agree, $27k debt for a college degree in a good major is a great investment in one’s future. In the long run it can pay for itself many, many times over. Spending that same amount on a brand new car and some credit card debt doesn’t really have a large return on investment. Many times in life choices have to be made. The best thing to do is to research those choices and make informed decisions. I knew early on that college would be expensive for my children. Because of this I started saving from the moment they were born to give them the best opportunity I could. Looking back it was a great decision. Even a small savings invested over time can go a long way.
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Biden now says he’s not going to forgive student debt by executive order but ‘encourage’ congress to do it either through a separate bill or in the next stimulus bill.
I take that to be a ‘no.’
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A comprehensive solution to the student debt problem should include:
A change to the bankruptcy laws as lenders will be more careful in their loan approval process;
Zero interest on existing student loan balances for those making regular monthly payments;
Partial loan forgiveness of an amount equal to all accumulated interest to date.
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Any idea why he is so vague?
@Yankeefan20 please scroll up and you will see my response to your question about how much undergrad loans I think are smart. I clearly said that loans in excess of the undergrad Direct Loan amounts for undergrad were too much, in my opinion.
@Yankeefan20 this site prohibits discussions about politics.