Student Loan Debt?

[Snobdds]

I think Real Estate prices would take a sharp hit if mortgages were again 15% with 20% down and points…

What's the solution to this...DON'T BE AVERAGE

Over educate yourself
Over safe
Over invest

And most importantly...live below your means.

 

[CloverKnollFarms]

The key really is to not be like the rest of the world. Don't buy all the **** they do. Don't keep up with them. Don't value depreciating assets. People will look at you sideways, but you'll be in a paid for home and retired while they live paycheck to paycheck until death.

I love working. I DO NOT want to be forced to as I age. And that begins in your 20s with the debt you take on.

 

[paulsharvey]

I just can't imagine sending my kid to a school knowing they will graduate with $50-$100k in debt just as they start their life. It seems like parental malpractice. Even without debt, life is expensive.

Now, they can choose to do what they wish, but I'd never sign for that loan as a parent.

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The student is an adult, and can do as they see fit; but that's also one of the paradoxes. They are an adult, and can sign up for whatever loan; but the parents income counts against them until they are married, or if they get to what 25/26? Not sure why my income affects another adult?

 

[CloverKnollFarms]

The student is an adult, and can do as they see fit; but that's also one of the paradoxes. They are an adult, and can sign up for whatever loan; but the parents income counts against them until they are married, or if they get to what 25/26? Not sure why my income affects another adult?

To be fair, extending that much credit to a kid with no job or real income is insane.

 

[paulsharvey]

To be fair, extending that much credit to a kid with no job or real income is insane.

Oh yeah, 100%, but it is the students loan, the parent is not responsible. Now, what's even crazier is the Parents Plus loans or whatever they try to sell you on; and that is 100% the parents loan to repay.

 

[ultrarunner]

What's the solution to this...DON'T BE AVERAGE

Over educate yourself
Over safe
Over invest

And most importantly...live below your means.

I’ve manage to Skip quite a few… but I’m not average.

 

[MossRoad]

...I'd never sign for that loan as a parent.

We told our kids that we'd never co-sign a student loan for them. They could use their 529. They could use the set amount we had planned on giving them each year for 4 years (we planned for 5 just in case, but didn't tell them that). They could use their savings. They could work. They could take loans out on their own. But we wouldn't be on those loans.

It worked out well, both of them went to Purdue, got out debt free.

 

[CloverKnollFarms]

I’ve manage to Skip quite a few… but I’m not average.

I've not paid half of that on those things . Average needed for retirement is under $1M? Glad to hear it. I'm about to quit working a real job and that is already locked up.

 

[plowhog]

I’ve manage to Skip quite a few… but I’m not average.

A significant piece missing from the graphic is failed marriages. Last I knew over 50% of marriages ended in divorce, cutting assets in half.

At the time of an IPO, an associate of mine had his company stock options vest into $10M in value. He worked many years earning those.

A week later his wife filed for divorce. Now they were $5M in value, less attorney fees ....

 

[ultrarunner]

The millionaire nextdoor book reported a common theme is a good first marriage...