Oct 28, 2021
Summary:
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.
Highlights:
-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:
BetterQualified
Financial Survival Network
"Millenials Messing Up with Too
Little Credit?" with Paul Oster
"Threat of RansomWare is Quickly
Spreading" with Paul Oster