I was in a discussion with a lefty Bernie supporter and he said he was in the same hole. The guy graduated high school with me... 43 freakin years ago.
WTF is wrong with these people?
I graduated college with $20k in student loan debt and had it paid off in less than 5 years. I also got a starting salary of $27k/yr because I had the degree and within 8 years I was making $70k. I graduated with a “worthless” English degree but used it to get a real job not one working in education.
Many times a degree and your GPA gets you an interview. You don’t have to get a job in your degrees “field” unless you just want to do that. If so, and it’s not in a mathematics/engineering/science field you’re probably better off starting out at McDonald’s and working your way into management.
Apparently she never took a business course in school. Every debt besides a mortgage should be paid down as quickly as possible.
Even the mortgage should be paid off quickly. Screw the deduction.
“you know....the more I look at it..
the more I like it”
“The fact is,
no matter how closely I study it....
no matter how I take it apart...
no matter how I break it down,
It remains consistent .....
It remains consistent .....
“I wish you where here to see it........................
Indiscipline
https://www.youtube.com/watch?v=Pr70ttkMoHE&list=PLQjtAjuYkU5-cTsEb9W8zO31COljtuaSt&index=4
So let me get this straight.
She shows everybody this picture to prove something.
Well it works.
It proves to me she's an idiot and no amount of education could change that.
The stupid is strong in this one.
Sounds like the type that has another $40,000 in credit card balance to go with it.
I can’t see how $26,000 turned into $45,000 if she “faithfully” paid the loans. I suspect she deferred them for a number of years. Interest still accrues even though payments are not being made.
The best way to counter these idiots if to point them to “Hard Work U” https://www.cofo.edu/
Student loans have become a long-term mortgage on your life - and not discharged in bankruptcy by Clinton, as a favor to banks.
A good rule of thumb is to pay back any amount of debt in your lifetime, you must pay about 1 percent per month. So for a $26,000 debt, she would have to pay about $260 per month. She paid $105 per month, on average. Of course the principal would grow.
“The Occupy Lie”
I saw this graphic on Facebook and was taken aback by how expensive this debt seems to be. However, doing the math reveals that the numbers are very misleading.
The graphic says, “Student loan paid faithfully for 23 years: Borrowed $26,400. Paid back to date: $32,700. Still OWE: $45,276.63. No Bankruptcy of Forgiveness Allowed. Only Death or Total Disability frees you. NO Social Security or Medicare till paid off.”
Let’s look at the numbers….
23 years of $32,700 total paid is equal to $118.48 per month.
($32,700/(23×12)=$118.48)
Present Value of the loan is $26,400 (borrowed amount).
Future Value of loan is $45,276.63 (balance after 23 years or 276 months).
Using my financial calculator (Texas Instruments BA-35) and DebtSmart 30-year Loan Worksheet. The APR (Annual Percentage Rate) for this loan turns out to be 6.699%. You can see the entire amortization of this loan here showing all the numbers that prove that rate to be accurate. (Page 8, payment month #276 is 23 years.)
The reason there is so much owed after 23 years is because the monthly payment didn’t cover the interest costs. The interest alone on month #1 is $147.37, however, payments of only $118.47 per month were made, and therefore, the loan will NEVER be paid off. The balance will continue to grow forever. To be more extreme, it’s like buying a car for $1,000 and only paying $1 per month and then complaining after 23 years that you now owe $10,000.
Then there is the matter of what the rates were back in 1990 when this loan was supposedly taken. According to FinAid.org, the interest rates on student loans were fixed at 8%. So how is it possible that the average rate of the claimed loan is 6.699%? In other words, how is it that they paid less than 8%?
Well, one answer is that the government reduced the rate. So not only did they lend this student the money, allow them to make payments far less than needed to pay off (probably to help the borrower out with cash flow), but they also reduced the rate over the 23 years.
The final analysis, as I see it, is that the graphic is either: (1) A complete lie; or (2) The result of getting too many breaks and not being responsible with the loan. Probably the former.
- See more at: https://www.debtsmart.com/2013/07/10/the-occupy-lie/#sthash.3AHkat8u.dpuf
My wife and I have been working two jobs each, 7 days a week, for the past 3 years, to pay off our son’s college education.
Our son has also pitched in, working part time and full time summers as a bartender. After 5 long years he will graduate with his Civil Engineering degree this year, DEBT FREE.
I think his graduation will be the happiest moment of my life.
Should have attended a college where math was required ... but if the coveted Degree in Hispanic Lesbian, Gay and Transgender Studies was an exclusive must have ... then enjoy!
I think there is a failed IQ test involved here. Hers.
Is Tony Soprano holding the note?
Assuming “instantaneously compounded interest” the problem is of the form d P(t) = (r P - a ), where r is the rate of interest, and a is the rate of repayment.
The integral is number 27. in the CRC math tables, but we all know this anyway, as we realize as soon as we look it up :-)
From this formula I get
P1 = P0(1-a/(r P0) ) exp( r t ) - a/r
This seeming weirdness makes sense. In the first place, you must have your rate of repayment, a, greater than your instantaneous AMOUNT of interest, r P0, where P0 is your initial principal owed. Otherwise, you will make no progress whatsoever. So as to conceivability, the question is settled.
And since the progress is negative in the “meme” story, this must be the case there.
Suppose your interest is a usurial 10% annually. This would be $2640 annually which would have to be matched by a $220 monthly payment just to pay back the accummulating interest.
For the Principal to have “only” doubled in 23 years means that, if the story is substantially true, the complainant must have been paying a monthly amount which almost matched the monthly interest on the initial principal. Of course, this is a runaway situation once the principal grows substantially, and I imagine the initial intention was to “keep pace with the interest” with minimal payments.
What kind of job did she have where she could not pay off a 23k note in 5-10 years?
Perhaps if they actually economics in HS home economics people could avoid this stupidity.