The Soapbox

Joined: 10/05/2001 Posts: 712
Likes: 1075

What's this?

This may be a long post.

One of my employees is a 26-year-old woman.

First in her family to go to college, she graduated from high school with around a 3.0 GPA. Totally average student. Her guidance counselor basically told her she wasn't college material. To her credit (or detriment), she went to ECU (out of state) and borrowed around $55,000. Her mother, broke as shit, was able to borrow another $25,000 on PLUS loans. Neither of them were very fiscally knowledgeable.

Upon entering the real world, she only had to make two payments before Trump and Biden put her payments on hold. She's been able to buy a car, put some money in the bank, and start to become an adult.

Now she's got to start paying them back. The PLUS loan for her mom is at 7%. This is why the government cannot afford to get out of this business. The loan that she obtained to consolidate other loans is at 7.74%. Ridiculous. And the third set of loans through the government averages 4.5%.

If she were my child, I would have guided her toward a more appropriate college choice. But no one in her life knew anything about money so it all sounded like funny money. The school took advantage of her because it's crazy that she had to pay much of anything to go to college based on her financial situation when she started. The government took advantage of her by loaning her and her mother money at an exorbitant rate. And now she's got to backpedal and work this set of payments into her budget.

For her role in my practice, I pay her a very fair annual salary of $50,000. As all of us know, life's expensive and building $700 in monthly payments into that salary is not easy. So I am trying to figure out my role as her employer. I will likely help her pay them off over time and she will pay them back. That's not the question. But every step of the way, if she would have had one trusted person help her with her decision, she'd be in a much better place because she would probably owe far less than she owes now. While it's not our job as taxpayers to provide relief to the education apparatus, it's frustrating that our country and government seem to provide plenty of opportunity for loan forgiveness and tax credits to the wealthier class but then bristles at providing similar opportunities for the part of the working class that actually works.

(In response to this post by Tuckahokie)

Posted: 09/29/2023 at 2:09PM

+15

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Current Thread:

Not sure what this does to the economy (will defer to smart people) (link) -- Tuckahokie 09/29/2023 1:21PM

Here is some good data...almost 1/2 of current loans are post grad (link) -- Tuckahokie 09/29/2023 2:45PM

I think that’s 46% of loan balances, not number of loans. Graduate schools -- 111Balz 09/29/2023 3:05PM

Daughter is getting a Master’s at a State school and I was somewhat -- Tuckahokie 09/29/2023 3:10PM

This may be a long post. -- fphoo 09/29/2023 2:09PM

Dude she is fortunate to have you in her life -- HoodatB 09/29/2023 4:38PM

Thanks fhp. Good to hear stories of people who care about others -- Lazarus 09/29/2023 3:31PM

Financial literacy and planning is maybe the most important life skill -- HoodatB 09/29/2023 3:00PM

None of that is is education and Dems do not want it. ** -- ryno hoo 09/29/2023 3:28PM

^ Another post to prove how important education is ^ -- HoodatB 09/29/2023 3:45PM

Pic -- ryno hoo 09/29/2023 2:48PM

Her guidance counselor is a two time asshole -- CharlestonSC 09/29/2023 2:44PM

She'll get a tax credit for all the interest she pays on those loans, above -- Hoodafan 09/29/2023 2:40PM

We need a national standard for college guidance -- NJHoo 09/29/2023 2:50PM

Agree. Completely understand that some don't have the best financial -- Hoodafan 09/29/2023 2:54PM

The US educational system sucks at teaching practical math/money matters ** -- WahooMatt05 09/29/2023 3:50PM

Yes it does. Even just the simple stuff like basic finance, tax filing, -- Hoodafan 09/29/2023 3:54PM

That guidance counselor may have been lacking in his/her knowledge base -- NJHoo 09/29/2023 3:24PM

Obviously hindsight...but coming out of High School she should have been -- Tuckahokie 09/29/2023 2:39PM

Excellent post** -- NJHoo 09/29/2023 2:34PM

Thank you for the post. ** -- Shenhoo 09/29/2023 2:21PM

Wouldn’t the income based repayment plan cap her -- BocaHoo91 09/29/2023 2:18PM

According to my interpretation of the website, -- fphoo 09/29/2023 2:37PM

Hear, hear ** -- WaxHoo 09/29/2023 2:14PM

And pile on capitized interest -- Arachnid 09/29/2023 2:12PM

She took out $38K in loans to get a degree (maybe) that qualifies her for a -- Hoodafan 09/29/2023 1:44PM

If she works 40 hrs/wk that’s $24.50/hr. ** -- SixerHoo 09/29/2023 2:33PM

As a CLAS grad, I can’t be expected to do math.. But Hooda is McIntyre, or. -- southdenverhoo 09/29/2023 2:35PM

"The customer service representative takes home around $1,500 a month" -- Hoodafan 09/29/2023 2:49PM

Absolutely my bad. I thought you were referring to fphoo and his $50K a -- southdenverhoo 09/29/2023 2:53PM

A simple, "sorry, my HoodaDS got the better of me again" would suffice. :-) -- Hoodafan 09/29/2023 2:58PM

I assumed he gives her a week off with pay, in her first year, only because -- southdenverhoo 09/29/2023 5:29PM

I mistakenly thought you were replying to fphoo’s post too. Sorry. ** -- SixerHoo 09/29/2023 3:57PM

But just couldn't wait to "get Hooda"! :-) -- Hoodafan 09/29/2023 4:20PM

I mean I didn’t even call you stupid or anything. I thought that showed -- SixerHoo 09/29/2023 4:30PM

A Los Angeles McDonald's takes care of that :>) ** -- Tuckahokie 09/29/2023 1:58PM

I think the drag on the economy is relatively minimal. -- BocaHoo91 09/29/2023 1:43PM

Probably a good number of people with advanced degrees way north of 37K ** -- Tuckahokie 09/29/2023 1:56PM

My assumption too since Govco undergrad loans top out around $27K iirc -- Hoodafan 09/29/2023 2:06PM

It’s a headwind to the economic recovery. Along with spiking oil prices, -- hoolstoptheheels 09/29/2023 1:31PM

Yeah, but I think it’s the smallest of the 4. ** -- BocaHoo91 09/29/2023 1:48PM

Yes, and speaking of intentional....the government shutdown. ** -- Seattle .Hoo 09/29/2023 1:32PM

Derail the economy just in time for 2024. -- BocaHoo91 09/29/2023 2:22PM

With a bogus impeachment inquiry/impeachment as the cherry on top ** -- Hoo TV 09/29/2023 2:48PM

They may as well have appointed Trump as Speaker. He is de facto. ** -- Seattle .Hoo 09/29/2023 3:07PM

He only needs control of a handful, because they will oust him if he -- Hoo TV 09/29/2023 3:34PM