I've been reading up on it a bit as I am going to be graduating soon with $130k+ in student loans split up between myself and my parents.
What I found extremely interesting is that after 25 years you do not have to pay back your loans... everything is forgiven including interest.
I've got a few talking points.
1. Do you think that Obama's administration should/will implement more of a student loan forgiveness program. If he is searching for an economic boost, imagine the increase in spending and building when a bunch of 25-35 year olds no longer need to pay off their loans (or they're payments are drastically reduced). Also, this would not only cause short term stimulation as the stimulus package was. Spending will continue at an increased rate for a long time.
2. What other types of programs would you like to see implemented?
On a side note, I'm wondering what people's ball park student loan debt was when they graduated, and what your monthly payment situation is.
How do you manage to get 130k$ in debt? Are you in a ridiulously filled program/study where you have like no time to work or something? In some crazy expensive ivy league school? Getting that bad in debt is a very poor personal economic model.
I got ~5k$ iirc and i'm 2 years in. (electrical)
I have some help from my parents, but am planning on working during the summer and taking a coop position next year.
Some paperwork got messed up to make it look like i would be ending my studies and i got a letter that told me how much i'd have to pay and its around 90$ a month (4.7% floating). This is through the integrated student loans place which is part of a program with the Goverment of Canada. I'm pretty small potatoes compare do most other people though since i live near my campus and don't have to pay for residence and end up with like 1/3 of what people pay for school...
Wentworth Institute of Technology. $22,000 a year for tuition, plus housing expenses pushes it up to $30,000 a year. That's also only for 2 semesters a year, I'm going 3 a year so I can get out faster, so my bill has been like $45000 for 2 years.
Everyone at my school is in a similar position. My school is extremely competitive. Only 30% of our freshmen graduate, the rest drop out. Almost everyone who graduates with an engineering degree starts out with a $55k+ job after graduation.
Luckily I'm almost done, as I've only got 2 more semesters of classes and 2 semesters of coop. I'm hoping I can save enough money during my coops to pay for the tuition of my last 2 semesters.