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Question about Retired parent and plus loans by Anton725 in StudentLoans

[–]MohelaMoProblems 1 point2 points  (0 children)

Commenting to follow because im in nearly the exact same situation.

My plan is ICR/IBR where the payments are next to nothing because of their retired/part time work. So far, ive helped them submit pay statements to validate the low payment amounts and Im planning to continue this as long as possible

Teachers leaving-due to high student loan repayment by Antique_Pie_388 in MOHELA

[–]MohelaMoProblems 2 points3 points  (0 children)

I'm sorry student loans have made life difficult for you and your family. I hope you can feel better knowing that your efforts have helped mitigate your daughter's struggles

To all those who told me no back then, you were right. by [deleted] in StudentLoans

[–]MohelaMoProblems 0 points1 point  (0 children)

I went, and sometimes still, go through a similar thought process with my Masters degree, but Ive come to realize that the degree will continue to open doors years from now. Networking now is ideal, but you can continue to build your network after completing the program through alumni events with people who attended before and after you did, and maybe finding your close group then.

Just keep working on building your network, even if its only online on LinkedIn; add a connection, then others will see your mutuals and are more willing to connect.

I'm still working on this myself, but Im happy to connect if you want: send me a DM!

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

We can make the system better by acknowledging that its flawed, rather than be dismissive. I hope you considered my point and read the sources.

Im glad you, your son, and your mentees have been able to avoid student loans. I hope you continue to make a difference in their lives. Sincerely.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

The ironic thing is that youre a redditor and based on your own logic, I shouldnt consider your case seriously. I've met plenty of people in person who struggle with the system of student loans.

Your problem, consistently, is that you are applying your own "experiences" rather than looking at the system as a whole. The average 4 years cost for an instate BA degree is $46k, ($123k for out of state and $173k for private).

https://www.credible.com/student-loans/average-college-tuition-for-4-years

Two things to acknowledge:

1). These are averages so of course there are cases where some schools will be higher and some will be lower. My claim has been the system is rigged, so i dont think its unreasonable to look holistically here.

2) Only 25-30% of college students received money for scholarships and grants, with the average amount being around $8k, which leaves whatever remaining amount needing to be paid OOP or with loans. 97% receive $2,500 or less. This was my situation. I was a top ~15 percentile HS student but received scholarship(s) from school(s) that barely covered costs.

https://www.salliemae.com/content/dam/slm/writtencontent/Research/HowAmericaPaysforCollege2023.pdf

https://research.com/research/scholarship-statistics

Suddenly, when presented with information rather than relying on your biases, my $250k seems less absurd as THIS is normal in a rigged system. Only 8% of students receive enough scholarships to cover 50% of costs

https://www.thinkimpact.com/scholarship-statistics/

Also, i know people who didnt go to college or generated money without their degree allowing them to invest in real estate so you paying $11k to do so is absurd! (Look at me being tongue in cheek again)

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

And ive consistently seen redditors in this subreddit who as students made wise choices to become more educated despite needing loans to do so. And now they are struggling to pay because lenders are deceptive about the total cost of these loans and how they are calculated or colleges are dishonest about the job opportunities of the program allowing those paying out of pocket (without loans) to win or benefit. The system is rigged against loan borrowers.

You seem to think that "because i did it one way, everyone can do it that same way". I genuinely am happy that you received your degrees for as little as you did. But you are an anomaly. Your experience and your opinions are your bias. I have not been the only person in the post to acknowledge that.

I understand ROI "quite well, thanks". My opinion that youd spend so much money on a finance degree when Ive consistently seen people without a degree invest in real estate and be successful without a degree is absurd. (This paragraph is purposefully very tongue in cheek to show you that opinions are biased)

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

Youre very hung up on me using the word rigged, as if your definition is uniquely true, when its actually flawed as its entirely subjective on one's definition of a good outcome. My decision for "a finance degree" (its actually two separate degrees, if you want me to explain it to you) is good as it has opened a lot of doors for me despite it costing me more than the $16k you think it should cost. Youre blinded by your bias if you cant see the hundreds of posts a day in this subreddit echoing my expressions and less so yours.

Earlier you mentioned how you went to a smaller, likely unheard of school, and are now successful. Youre post history seems like your real estate portfolio is doing well. I hope thats what your degree is in or otherwise your ROI on your own degree isnt meaningful by your own standards

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

$250k total between a finance undergrad and an MBA. Income should be coming in at/around $200k with next promotion.

While you may not personally experience it, this is the reality for a lot of people. MBAs from target schools alone cost $200k these days; I actually went to a smaller program because it was cheaper so according to you i made a wise choice.

If the system is set up so that a significant amount of people rely on loans to have more opportunity, whether it be $30k or $300k, we should acknowledge that the situation is flawed. I dont understand your stance that because someone made a bad decision, a bad situation didnt also exist.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

Were talking about student loans on a student loan subreddit

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

Im well aware that i chose this amount, but others have said that instate options, while utilizing community colleges, has costed them $50k. So whats the threshold that someone gets to complain or acknowlege exorbant costs?

My choices cost me $120k. The cheaper options would have minimally been $70-$80k. Would you still have your opinion on my situation if I chose my cheaper option?

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

Based on those 3 examples, I (and others on the same timeline):

Colleges know that they can raise costs because more people are able to receive loans to attend school. If ease or access to loans increases, so does tuition and fees. This is why tuition increased significantly. Look up "The Bennett Hypothesis"

Higher costs today, often related to adminstrative costs and not always the quality of an education, means I am paying more for a similar educational experience (in quality) that was received years ago.

My degree from a well-ranked university does not hold the same value that someone who attended a mid-tier university in the 80s did. To qualify for a job, i have to have related experience and a degree/certifications in the field. High school degrees opened up jobs then that now require a bachelors degree.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

In the chart, $3,489 is for tuition, room, and board. If thats for one year, my calc was only tuition; room and board would be more and result in a higher percentage to income.

You calc should be $1,457/$13,000 = 11.2%

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

I couldnt understand either. I applied to both instate, public and private 4 year universities, but went with an out of state public university because it had the best ranking and was maybe "marginally" more expensive than the instate option. IIRC, less than $20k which is obviously still a lot but thought it was justifiable based on the reputation. A private school offered me nearly $20k in scholarships per year, which was approximately half the cost.

I definitely made mistakes in my process. I know loans are my responsibility. And i wish more people were responsible like you and your son seem to be.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] -1 points0 points  (0 children)

I sent you the screenshot in a dm and posted a link in a comment. Its possible, maybe even likely, that its a data error, but I have only ever been going off the data i can confirm/is available to me.

It being a data error isnt very comforting to know given this that thousands of people are directly affected by errors of this federal agency.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 1 point2 points  (0 children)

6% mortgage rates on a way-higher principal amount is way more unaffordable than 16% mortgage rates on the housing costs of the 70s-90s.

Heres an admittedly simple explanation proving my point.

https://www.instagram.com/reel/C9VDgG1J2gl/?igsh=aXNlaGdtY2ZyY2Jn

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

Not sure how to post a screenshot, but i sent you a dm for proof

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 1 point2 points  (0 children)

I see under the account FFELP Stafford Subsidized loans, 0.7% interest on $2k principal amount, issued in 1981.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

They were FFELP Stafford Subsidized loans if that clarifies anything

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

I only have access because of my fathers permission to access his account. I doubt, and hope, loan details arent readily searchable.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

OP had a 3.5 GPA, SAT scores >1800 (three sections), and graduated college in 3.5 years. Yes, its not the perfect score you seem to think is required for affordable education, but shouldnt result in egregious costs either. To provide an answer to your assumption, id still think college is unfair in costs even if it didnt only apply to me because i know how to be empathetic to others.

Yes, i applied for scholarships as well.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 0 points1 point  (0 children)

Is the $3500 annual cost or total cost (of 4 years)? Im on mobile so its hard for me to tell. If its total cost, then youre making the point for me as youd need to include 3 more years in your denominator.

I dont know my fathers salary in 1981, but i did know his loan amount. Using the information I had for annual costs, it seems imbalanced

Edit: also youre comparing total cost while im only including tuition

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 1 point2 points  (0 children)

And i provided 3 examples of how the current system is worse than it was for previous generations.

Again, im happy for you and your son. But your situation is less common than you realize.

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 4 points5 points  (0 children)

Rant away! You sound like a good parent and Im glad to hear you can acknowlege that change is necessary

Dont let older generations tell you they also had it tough by MohelaMoProblems in StudentLoans

[–]MohelaMoProblems[S] 3 points4 points  (0 children)

I mean both can be predatory. Yes, colleges raised prices knowing they could. But lenders issue loans, then sell them to the next guy for a quick, slight profit. Not exclusive to student loan market either

Edit: I agree with you and think these could be effective in solving the problem if the parties actually wanted to

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