Could you explain to non-Americans what is the appeal of student loans if they can do this? Why shouldn’t people go to cheaper schools to get their degrees instead? I mean no disrespect, if you are rich go to Yale or whatever, by all means.
There are no cheaper schools. There are expensive ones and more expensive ones. There is literally no option for the non-rich except to go into debt or learn to be a plumber.
I went to a really cheap school. My master’s was 40k.
My bachelor was around 12k and if I did it faster it could have been cheaper. Wgu does it based on term not credit hour. The more courses you pass in a term the cheaper it is overall.
There was literally no way for my master’s to cost less, so I am not sure what your point is. It’s a minimum 2-year program. It’s how it’s designed. Not all degrees are like that, but in my case I paid the least amount possible already.
Children are told that they MUST go to college to get a stable and high paying job. This is so prevalent that college degrees are just seen as “the next step after high school” and nobody questions it. These colleges have figured out they can charge almost anything because they are seen as the gate keepers to high paying and stable jobs. So banking on future earnings, bearly emancipated teenagers, with the absolute minimum of a financial education, make life decisions that will put them in debt for the next 20-30 years.
The problem with the whole system is there doesn’t appear to be enough high paying and stable jobs.
As far as going to a cheaper college, I think you identified the issue in your very own comment. Schools have different prestige levels. Yale, for example, is a high prestige school and not only are you paying for an education, you are also paying to connect to rich people. These connections can be worth a lot of money if they are used correctly. So going to a cheaper college also means less valuable connections.
That’s one of only good things about Florida. The colleges on average are significantly cheaper than anywhere else, and Florida is still ranked number 1 on US News for college education when looking at every single college combined.
So basically get a good affordable education and then move the fuck out of Florida.
there are no cheap schools in the US.
See my response to another comment about wgu
With no DOE employees to process defaults?
Nobody should be paying a red cent.
If your choice is draining your entire bank account to the point you can’t afford to live or suffering a credit score penalty, then the credit score should be sacrificed.
“but they can…”
Stop. Nothing they can do is worse than starving. Don’t pay them. Use your money for your own needs.
I wish more people understood no one can stop you if there is no one to stop you.
I wish Trump didn’t understand that.
Can’t recall an education
I worked hard so I didn’t have to take loans. I never had much pity for people who did take them. They were obviously predatory and the math never checked out. Any amount of cursory research on it would have shown that. They took those loans, didn’t have a plan to pay them back and have begged politicians to spend my tax money on bailing them out.
Middle class America doesn’t need to be bailing out someone who graduated from a four year degree. They’re not any more deserving of the money just because they’re gullible or ignorant at best.
SLABs will tank, someone’s collateral gonna get busted
SLAB?
Student Loan Asset-Backed Securities
Basically, people can buy the rights to your loan payments. Maybe they get packaged together with many others’ debts.
SLABSs are quite profitable, obviously. During COVID years there was a freeze on debt payments and holders of SLABS started to feel the squeeze. SLABSs are such a guaranteed return that people/banks/hedge funds can use them as collateral for loans and stuff. So during COVID, SLABSs became a liability. Or so it’s been speculated
If people start defaulting on their debts, SLABSs could be centrally involved in a financial collapse, the first domino to start chain reaction of margin calls
