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0 pointsthrowforfeds8mo ago0 comments

Yes, but Americans have an incredible amount of student loan debt too. Something like $1.7 trillion. If you can get into one of the best schools in the world that has a huge endowment, then sure, you'll get grants and whatnot. It may even be free, in the case of Harvard. But then there's a long tail of schools that are honestly not that great, charging only slightly less than the top schools per year, with smaller aid packages, and kids sign up for crazy loans because they think they have to.

Personally I think the government should get out of the business of these loans, fully fund state schools to make them all free, and let the private schools and the private banking market deal with the rest of it. We were going down that path in CA until Reagan killed it when he was governor. [1]

[1] https://newuniversity.org/2023/02/13/ronald-reagans-legacy-t...

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8 comments · 2 top-level

sxg8mo ago· 3 in thread

Public service loan forgiveness (PSLF) exists and a huge number of people in medical professions actually take advantage of it. I know of multiple medical students and residents with over $500k in debt that are in the process of having all of their loans forgiven after 10 years in training and a total cost of approximately $75–150k for their entire education. Sure, that's still a decent amount of money, but it's very much worth the ROI.

https://en.wikipedia.org/wiki/Public_Service_Loan_Forgivenes...

lesuorac8mo ago

How successful are those people being?

IIUC, there was a bit of a scandal where the companies the DoE where paying to manage those 10 year forgiveness plans where giving incorrect advice and so a lot of people aren't going to qualify.

https://oag.ca.gov/news/press-releases/attorney-general-bece...

apparent8mo ago

Lots of hospitals are nonprofits, and doctors can make lots of money working at hospitals. There is no income cap for PSLF IIRC, as long as you're working for a qualifying entity (including nonprofits).

sxg8mo ago

Anecdotally, it's worked out for a number of friends and people on /r/PSLF. There's definitely poor communication around PSLF, but it is a real program.

tptacek8mo ago· 3 in thread

American student loan debt skews sharply towards the top income quartile.

gedy8mo ago

Yes, granted it was over 20 years ago, but I came from a pretty broke household in the United States, and I went to a cheap state school instead of a nicer university or private school because I couldn’t imagine borrowing for school. The folks I know who were much more well off, seem to have had no problem borrowing what I considered to be exorbitant sums to both pay for school and live off of.

tptacek8mo ago

In a redistributive sense it is very much like American homeowners complaining about their mortgage debt.

throwforfedsOP8mo ago

Yes, but I also know plenty of people that can't afford the loans that they have. I have friends and family that after a decade or more of repayment still owe the same amount they did when they got out of school. Some aren't paying theirs at all. It's going to be a problem, as only a third of borrowers are actually making payments [1], and debt forgiveness isn't going to solve the root of the problem.

Of course we can blame them for taking $60k out for studying something that will never get them a good paying job, but these are 18 year olds. I was lucky in that my parents are immigrants and were like "absolutely not, this is crazy, go to the flagship state school and study science". I paid off my $24k in loans in a couple years. Many didn't take that path.

[1] Bloomberg archive link: https://archive.ph/IBuzw

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