Author Topic: Who Borrows for College—and Who Repays?  (Read 366 times)

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Offline OfTheCross

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Who Borrows for College—and Who Repays?
« on: October 09, 2019, 12:26:26 PM »
Quote

Although these factors explain the rapid growth of aggregate student debt, there remains a large number of borrowers with smaller balances. The distribution of borrowers by balance reflects this; the median balance among borrowers is just under $18,000. About 33 percent of borrowers have balances below $10,000, and 20 percent of borrowers has a balance of more than $50,000. Only a small percentage—only 7 percent or about 2.9 million borrowers—has a balance over $100,000.

NYFed

They have a lot of wonderful graphs that break down the findings.

Not surprisingly, the default rate is less among those with higher incomes:



But what I would hope to see is "Current, Balances increasing" going down. Although the higher earners aren't defaulting. The balances aren't being paid down. The interest rates must be killer.
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Offline Elderberry

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Re: Who Borrows for College—and Who Repays?
« Reply #1 on: October 09, 2019, 12:34:32 PM »
I didn't borrow a penny for my degree, my son's and my daughter's degrees either. The GI Bill and the Texas Hazlewood Act sure came in handy though.
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Offline The Ghost

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Re: Who Borrows for College—and Who Repays?
« Reply #2 on: October 09, 2019, 12:48:58 PM »
I would like to see the "Degree's" the defaulters graduated with.

Not much demand for Bowling Industry Management and Technology, or Master of Science in Foresight.  However if you did get a degree in Master of Science in Foresight you probably already new you would be defaulting on your student loans.

Online Applewood

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Re: Who Borrows for College—and Who Repays?
« Reply #3 on: October 09, 2019, 01:47:13 PM »
I didn't borrow a penny for my degree, my son's and my daughter's degrees either. The GI Bill and the Texas Hazlewood Act sure came in handy though.

When my brother went to college, Dad applied for and received a state grant of a whopping $800.  But other than that and my brother's summer jobs,  Dad put my brother through college. 

By the way, that state grant no longer exists.  It's been replaced by a state sponsored student loan program.  Reasonably sure there are plenty of defaults in that program.

Offline jmyrlefuller

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Re: Who Borrows for College—and Who Repays?
« Reply #4 on: October 09, 2019, 04:11:56 PM »
But what I would hope to see is "Current, Balances increasing" going down. Although the higher earners aren't defaulting. The balances aren't being paid down. The interest rates must be killer.
I took out some student loans when I went to college. I took a very aggressive approach to paying them down when I got out of college. In order to nip the loans in the bud, you have to pay more than the minimum monthly payment. I ended up paying at least double the minimum (half my income at the time) for the first year.

I ended up paying off my loans in five years instead of ten.

Living on the cheap for the first couple years out of college will pay massive figurative dividends down the road.
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Offline mountaineer

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Re: Who Borrows for College—and Who Repays?
« Reply #5 on: October 09, 2019, 04:15:10 PM »
I didn't borrow for undergrad, but did for law school, and did the exact same thing J. Myrle talks about. Lived frugally and paid the loan off well before it was due. I hate owing anyone anything!
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Offline Elderberry

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Re: Who Borrows for College—and Who Repays?
« Reply #6 on: October 09, 2019, 04:17:52 PM »
My 2 kids were commuter students to the U of H, a TX state sponsored school. Their tuitions were running around 4k ea. a semester. With Hazlewood the  tuition dropped to around $150 and that was mostly parking fees.
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Offline Gefn

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Re: Who Borrows for College—and Who Repays?
« Reply #7 on: October 09, 2019, 04:34:30 PM »
I paid my own tuition as an undergraduate. Graduate school was paid for by the school via scholarship and work study (TA)
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Offline TomSea

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Re: Who Borrows for College—and Who Repays?
« Reply #8 on: October 09, 2019, 10:57:05 PM »
I paid my own tuition as an undergraduate. Graduate school was paid for by the school via scholarship and work study (TA)

That's very commendable. You're way better than me.

Offline IsailedawayfromFR

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Re: Who Borrows for College—and Who Repays?
« Reply #9 on: October 26, 2019, 11:51:13 PM »
Best way to keep student debt down is to avoid the pricey schools or maybe not go to college at all.  Lots of degrees are worthless and lots of jobs do not require a college degree.

I would invest more in strengthening of vocational or tech schools to learn a real skill that can land a job rather than learning something one has interest in that has no job prospects.
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Online truth_seeker

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Re: Who Borrows for College—and Who Repays?
« Reply #10 on: October 27, 2019, 12:26:07 AM »
It took me 8 yearss start to finish, for a bachelors ages 17-25.. GI Bill and work paid for school, and support of wife and faughter. Oh two years overseas in the Army to earn the GI Bill.

I went to two four year state universities, and one community college. No debt in the end.

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Offline Elderberry

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Re: Who Borrows for College—and Who Repays?
« Reply #11 on: October 27, 2019, 01:15:04 PM »
Dang! You beat me! It took me 11 years. Worked construction, then 4 yr Navy Hitch, then OJT as a transformer engineer. They told me they weren't looking for a grad as it wasn't taught in college. ( Mostly custom high temperature downhole xformers) I bit, and then later they said they were limiting my raises since I didn't have a degree. Back to school while I continued working there. GI Bill really helped. Once I got my degree, 5 yrs or so later, they said what else is new? So off to NASA for me.
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Offline The Ghost

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Re: Who Borrows for College—and Who Repays?
« Reply #12 on: October 27, 2019, 04:31:28 PM »
It was 7 years down the drain for me.  I might as well have joined the f'n peace corps.


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