One of the biggest problems facing generation Y today is student loan debt.
If you throw in the search term "I majored in Debt" you can find multiple videos of students that racked up $50,000 to $200,000 plus in student loan debt and have no real way to pay them off. A good number of graduates are working minimum wage jobs or temp jobs.
Luckily for me, I was able to get through college without having to take any loans. Most of my friends did take loans and they told me that their loans do not charge interest until they graduate.
I don't know very much about the qualifications of receiving government loans. I just know that student loans cannot be discharged through bankruptcy. It does make me wonder if generation Y students have used credit cards to pay off student loans and then go though with bankruptcy. After all, student loans can't be discharged through bankruptcy but credit card debt can.
Please do not actually try to transfer student debt to credit card debt. I am not advocating that.
Since I don't have much knowledge about student loans, I do not know the qualifications to get them or the requirements to pay them back. I kind of wonder if some people have been using college as a retirement plan.
Please do not actually try to use college as a retirement plan. I am not advocating this.
When I was in my last year in college, I took geography for my lab class requirement. I remember seeing on student that looked like she was in her 70s. I kind of wondered why she was there. At that age, I didn't think she was really trying to get a degree for a job. The second most likely reason I could think of was that she just wanted to get a degree because she never had the chance to do so before.
But then I thought about a third reason. What if she was in a poor financial position? What if she had no real family? What if she could not afford food or housing?
Would it be possible for her to apply to a college and get a federal loan that would take care of her tuition and living expenses?
At that point in her life, she could reasonably just try to stay in college until she died.
If heard stories of kids racking up hundreds of thousands of dollars in student debt. I can't imagine that all of it would be due to tuition and books. The student must have used the loans for living expenses such as housing and food.
If there is no limit to the amount of loans a student can take out and if the loans don't have to be paid until graduation; could a student use federal student loans to stay in college for decades?
A student might be able to keep going to different colleges for as many bachelor degrees, master degrees, and doctorates as possible.
These are just different thoughts. There must be some sort of provisions in the federal student loan system that prevents these sorts of situations but I wouldn't be surprised if there was not anything to prevent this.
Again
Please do not try to go to college for the rest of your life. I do not advocate this.
If it is possible for a 20 year old kid to keep accumulating student loan debt for 60 years, this is a real problem for the US economy.
This is another reason why our country is falling apart.
You might want to keep buying your gold and silver.
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