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My wife and I worked and sacrificed to pay our student loans off. Struggle builds character, appreciation, and gratitude.

Salgat 10y ago
Same here! However, there is a line to draw on how much debt to put on someone. I know people who have tuition payments cutting into their living wages, affecting their ability to have even the basic necessities. There is nothing good about this unnecessary suffering, having to worry if you will still be able to afford a meal or a roof over your head.
- morgante 10y ago
  > However, there is a line to draw on how much debt to put on someone. Yes, people should decide how much debt they want to take on. There are vast differences in the value of different degrees (cost and earnings). It's people's responsibility to educate themselves. The rest of us shouldn't have to subsidize someone's terrible decision to go into debt for a degree in basket-weaving.
  - chumich1 10y ago
    Should we be expecting the average 17-year old to be make sound financial decisions? Especially given how much money is involved.
    - morgante 10y ago
      Yes, we should. The average college freshman is 18 years old. If you're old enough to drive a car, join the army, or be charged as an adult, you're old enough to realize that paying tens of thousands of dollars for a degree in musical theater isn't a great idea. It's not rocket science. There are tons of resources online to help you figure out which degrees and schools are good value.
      - chumich1 10y ago
        Yes, I agree it would be great if all 17/18 year-olds were able to sift through the marketing BS of school PR departments and the societal pressures to go to college, but it's increasingly obvious that they aren't making good decisions. I'm not convinced free college is the best solution either, but it seems you don't have much empathy for those without the same perception ability as you. I thought I was making the right decision, but now I'm stuck with 2k/mo for 8 years. I'm a bit bitter, yes...
      - st3v3r 10y ago
        "Yes, we should. The average college freshman is 18 years old." And how many finance courses would they have taken during high school?
ceejayoz 10y ago
> Struggle builds character, appreciation, and gratitude. https://en.wikipedia.org/wiki/Survivorship_bias https://en.wikipedia.org/wiki/Survivorship_bias Struggle can also cause bankruptcy, violence, and misery.
tswartz 10y ago
Paying off your debt early also builds really good financial habits which will help in the future. You learn to live below your means, make a budget, etc
- ceejayoz 10y ago
  If they're Federal loans with a often below-inflation interest rate, the actual good financial habit is often to not pay it off, and instead amass a) an emergency fund and b) sock the rest into retirement via an index fund or something similar.
  - magicalist 10y ago
    As others point out, it's really unusual to have federal loans as low as 2.5% (as you mention below). Most are considerably more. Are you sure that's a federal loan? It's also worth noting that 2.5% is still higher than inflation in the last couple years.
  - tswartz 10y ago
    That ignores risk and also financial burden. If you owe $2k every month to NelNet or another institution, it's much harder emotionally and financially to quit your job to travel the world or start your own company. We had Federal Loans and the interest rate was still 6.5%
    - ceejayoz 10y ago
      > That ignores risk and also financial burden. Not having an emergency fund is about the riskiest thing you can do. > If you owe $2k every month to NelNet or another institution, it's much harder emotionally and financially to quit your job to travel the world or start your own company. The emergency fund helps with that. When built up, it should cover 6-12 months of zero income. Amassing it first means losing a job doesn't mean deferring payments on the student loans and winding up with years more payments to make as a result. > We had Federal Loans and the interest rate was still 6.5% One of my wife's student loans is at 2.5%. At 6.5%, it's not below inflation and paying it off makes more sense.
dv_dt 10y ago
It is possible to build character without having it forced upon you.
karma_vaccum123 10y ago
Its nice that you earned your black-belt in self-discipline, but it doesn't benefit society much for you to become a miser to pay for a piece of paper. We are in a consumption economy...we need you spending money on things that create jobs for others, like homes and cars.

Salgat 10y ago

Same here! However, there is a line to draw on how much debt to put on someone. I know people who have tuition payments cutting into their living wages, affecting their ability to have even the basic necessities. There is nothing good about this unnecessary suffering, having to worry if you will still be able to afford a meal or a roof over your head.

morgante 10y ago
> However, there is a line to draw on how much debt to put on someone. Yes, people should decide how much debt they want to take on. There are vast differences in the value of different degrees (cost and earnings). It's people's responsibility to educate themselves. The rest of us shouldn't have to subsidize someone's terrible decision to go into debt for a degree in basket-weaving.
- chumich1 10y ago
  Should we be expecting the average 17-year old to be make sound financial decisions? Especially given how much money is involved.
  - morgante 10y ago
    Yes, we should. The average college freshman is 18 years old. If you're old enough to drive a car, join the army, or be charged as an adult, you're old enough to realize that paying tens of thousands of dollars for a degree in musical theater isn't a great idea. It's not rocket science. There are tons of resources online to help you figure out which degrees and schools are good value.
    - chumich1 10y ago
      Yes, I agree it would be great if all 17/18 year-olds were able to sift through the marketing BS of school PR departments and the societal pressures to go to college, but it's increasingly obvious that they aren't making good decisions. I'm not convinced free college is the best solution either, but it seems you don't have much empathy for those without the same perception ability as you. I thought I was making the right decision, but now I'm stuck with 2k/mo for 8 years. I'm a bit bitter, yes...
    - st3v3r 10y ago
      "Yes, we should. The average college freshman is 18 years old." And how many finance courses would they have taken during high school?

ceejayoz 10y ago

> Struggle builds character, appreciation, and gratitude. https://en.wikipedia.org/wiki/Survivorship_bias https://en.wikipedia.org/wiki/Survivorship_bias Struggle can also cause bankruptcy, violence, and misery.

tswartz 10y ago

Paying off your debt early also builds really good financial habits which will help in the future. You learn to live below your means, make a budget, etc

ceejayoz 10y ago
If they're Federal loans with a often below-inflation interest rate, the actual good financial habit is often to not pay it off, and instead amass a) an emergency fund and b) sock the rest into retirement via an index fund or something similar.
- magicalist 10y ago
  As others point out, it's really unusual to have federal loans as low as 2.5% (as you mention below). Most are considerably more. Are you sure that's a federal loan? It's also worth noting that 2.5% is still higher than inflation in the last couple years.
- tswartz 10y ago
  That ignores risk and also financial burden. If you owe $2k every month to NelNet or another institution, it's much harder emotionally and financially to quit your job to travel the world or start your own company. We had Federal Loans and the interest rate was still 6.5%
  - ceejayoz 10y ago
    > That ignores risk and also financial burden. Not having an emergency fund is about the riskiest thing you can do. > If you owe $2k every month to NelNet or another institution, it's much harder emotionally and financially to quit your job to travel the world or start your own company. The emergency fund helps with that. When built up, it should cover 6-12 months of zero income. Amassing it first means losing a job doesn't mean deferring payments on the student loans and winding up with years more payments to make as a result. > We had Federal Loans and the interest rate was still 6.5% One of my wife's student loans is at 2.5%. At 6.5%, it's not below inflation and paying it off makes more sense.

dv_dt 10y ago

It is possible to build character without having it forced upon you.

karma_vaccum123 10y ago

Its nice that you earned your black-belt in self-discipline, but it doesn't benefit society much for you to become a miser to pay for a piece of paper. We are in a consumption economy...we need you spending money on things that create jobs for others, like homes and cars.