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Kerry Lutz's--Financial Survival Network

Oct 28, 2021

Student loan debt has been a pressing issue in our country for quite some time, with little progress in resolving it. I sit down and chat with Paul Oster to analyze some of the causes of this phenomenon, and possible ways out. It seems that we are in an endless cycle of finance companies lending out more money, causing institutions to up their prices. There needs to be more awareness around the implications of taking a loan, and the long-term financial commitment it entails.

-Student loan debt has been a pressing issue for quite some time
-There has been talk of forgiving student loan debt—which is great in theory—but isn’t necessarily feasible
-What sounds great can be difficult to execute
-We must consider who is going to help fund this
-Student loan debt is something we have to get ahold of immediately; finance companies are lending more, so institutions are charging more. It’s an endless cycle
-In order to forgive this absurdly large sum of money, something has to give
-The deferment period and relatively low interest rates make loans attractive
-There needs to be a more in-depth discussion of these things and adequate planning before loans are taken so that people understand the consequences
-Students don’t receive enough information on all of the obligations of a loan—it can affect the rest of your life and set you back financially.
-It is good for building credit, but only if all payments are made on time
-There are lots of negative consequences that can come about in the case of emergencies
-Income-based repayment entails paying back your loans based on what you can afford
-The government is trying to solve a problem that they created—which typically just makes it worse
-The opposite of financial education is financial ignorance, and at a younger age it’s harder to make a decision that can harm the rest of your life
-Your credit score is either going to save or cost you money every month

Useful Links:
Financial Survival Network
"Millenials Messing Up with Too Little Credit?" with Paul Oster
"Threat of RansomWare is Quickly Spreading" with Paul Oster