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Post by minx on Jul 19, 2023 17:07:14 GMT -5
Read an interesting article about the whole forgiveness thing and how Biden could work around it and still keep things fair.
The Department of Education already has an income-based repayment program (which Biden has ordered reforms to because it's harder than hell to enroll in). So rather than just arbitrarily setting a repayment amount, each borrower could be automatically enrolled in the program. Your monthly payment would be based on your income - in order to qualify for a 'discount', you'll have to give permission for the loan agency to access your tax return each April to verify income for the year.
It seems pretty reasonable and fairly simple to me. And it would be fair. If you come out of college into a fabulous job that pays zillions, you'll pay the full amount. If you come out into a not-so-great job, part of your loan gets forgiven after you pay for a certain number of years (I want to say it's 15, but I could easily be wrong).
That way students will be encouraged to go on to get a college degree or further education (because loans are available for accredited trade schools as well), but not have to worry that their career path (thinking teacher or social worker here) won't be lucrative enough to justify the loan. And if your fortunes change, your payment can be adjusted up or down accordingly.
The biggest hurdle I see (other than the automatic release of IRS info), is that people will still claim it's unfair because the collective 'we' are subsidizing education for degrees that are 'worthless'. Why should *I* pay for you to get a degree in art history or literature? Study something that pays money!!! Ugh.
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Post by Dave's Not Here Man on Jul 19, 2023 18:12:22 GMT -5
That's a bit different than loan forgiveness and sounds quite a bit more reasonable.
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Post by minx on Jul 20, 2023 8:46:27 GMT -5
The other three things I'd like to see.
Interest reductions - borrowers should have to pay 2% interest or less. It's in the country's best interest to encourage people to continue their education, and it should be made as affordable as possible. Subsidized interest - All interest should be deferred until 6 months after graduation (or failure to enroll FT for the next semester or year of classes). Right now there are two tiers of loans. One is subsidized and the other is not. Both kids had a mix. Nothing like graduating and finding out that your $5000 loan is now a $6500 loan. Expansion of the Pell Grant program. When I went to school in the dark ages, middle class families could get a grant. Wasn't tons of money (I think I got $2k), but it helped a lot. Now you have to be destitute to qualify.
And I would like to see loans extended to people doing unpaid apprenticeships in trades. Don't know how long an apprenticeship lasts, but let's say a year. You can take out a $5000 loan to help you with any ancillary costs like rent, or a car. I will fully admit to not knowing how apprenticeships work though - do you get paid?
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Post by Dave's Not Here Man on Jul 20, 2023 10:02:48 GMT -5
Yes. It's just a formal name for union helpers.
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Post by minx on Jul 20, 2023 12:47:57 GMT -5
Ah, I didn't know that!
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Post by Dave's Not Here Man on Jul 20, 2023 13:54:11 GMT -5
Easy to confuse with interns which are usually unpaid but most trades, union or not, pay for your training on the job.
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Post by minx on Jul 20, 2023 15:36:29 GMT -5
Internships should do the same if you ask me.
Little Minx is in graduate school for speech pathology at Gallaudet. She's doing her first internship (they do 4), on campus in their speech clinic. Sees 11 clients a day - has to do all of their session/treatment plans, run the actual setting, discuss treatment with parents/guardians for minors (she has a mix of kids and adults) and do all of the testing and documentation for them. Supervised, but minimal supervision.
And no pay! They live a mile from campus so she can walk there, so not terrible - she packs a lunch. But next semester her unpaid internship is with a private practice in Bethesda, so she'll have to metro over there. If she didn't have someone (boyfriend) helping with expenses, she'd be screwed.
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Post by Dave's Not Here Man on Jul 20, 2023 16:15:07 GMT -5
So my daughter was up against the same thing when she was working on her Masters in psychology and was lets say slightly less than excited about that part. As luck would have it she got an opportunity to explore her options that led her in a different direction and the next thing you know she's making more than twice what she could have expected in a fraction of the time. No, there's no larger moral or humanitarian reward. She just left that company because of the mental drag and is in fl as I type training from r another company on a contact basis. Still an upward move which blows my mind. She makes more in a year than I made in two of my best years AND will be 99 percent working from home.
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Post by minx on Jul 21, 2023 8:53:00 GMT -5
That's fantastic and I am thrilled for her!
Little Minx would love to join a private practice, but really enjoys working with non-verbal kids, so I suspect a public school system is more likely. Which means no money as well.
And even though she made $4000 in the year before she enrolled (had to do online school to take the undergrad courses needed for entry, so worked part time), all she was given in financial aid were loans - unsubsidized so the interest is accumulating as we speak. Gallaudet is $18K a year, and it's a 2 year degree. So $40K in debt.
When Mr. Minx retired, he had 6 weeks of annual leave on the books. We agreed to give each kid a one-time gift of $10K, so paid little Minx's first semester for her. Sold Elder Minx my Crosstrek for $6K under market and gave her the rest in a check. (which is how she wanted it done)
But unless one of us has a rich uncle we don't know about, no more huge windfalls.
Little Minx is lucky - she took a 3 year break before going back for her masters, because she really wanted to be an ASL interpreter and was freelancing. While she lived with us rent-free, she dumped a ton of money into her student loans. She was on a long-term contract for Spotsy schools and was laid off during the lockdowns so qualified for the enhanced unemployment checks - used that to pay off the balance of her undergrad loans (she had taken out $25K). So she'll 'only' have another $30K+ to pay off. If she had to go straight from undergrad to grad, it would be closer to $60K.
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Post by Dave's Not Here Man on Jul 21, 2023 12:36:30 GMT -5
Their grandparents set up 529s for all of them and she got some grants as well. So when she graduated with her degree, the loans were minimal and I believe long since paid off. However, when she got started on her masters, the 529 was exhausted and she racked up some debt for tuition, books, labs, etc. I don't know where she's at on those right now but assume that if she wasn't able to knock those out with her last job, she'll be able to do it relatively quickly with this new one.
As far as all this stuff goes, I have never in my life suggested to anyone that they should take a job for the money or aspire to put their financial stability above their freedom and happiness. I think your kid is doing amazing things and it doesn't really matter what it pays. Making a difference and having positive impacts on people's lives, especially children, the challenged, and the elderly, will always get my highest respect and approval. At he same time, I'm really proud of lil momma and have always seen what those companies see in her now. She just completely lucked out when it came to the pandemic allowing the telework to expand and thrive. I have my doubts that she would have driven to McLean every day once the baby was born. He lasted less than 2 weeks in The Goddard School. Laughing emoji x 10
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Post by minx on Jul 21, 2023 15:20:38 GMT -5
Agreed! I wish more people would understand that we need all sorts of people and jobs.
College is important and the right path for some people. Others thrive in the trades. Still others love the military. And while I've yet to see a person say they love retail or janitorial work, they are valuable jobs and not the easiest to do. Finally, being a parent who stays at home to raise children or an adult who steps away from the paid workforce to care for an aging or ill family member is a very valuable job and not acknowledged as the work it truly is.
And I am rolling at the nugget 'failing' out of the Goddard School! I was the total opposite - I love my kids, but definitely was not cut out to be a stay at home parent!
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Post by Dave's Not Here Man on Jul 22, 2023 12:36:53 GMT -5
For myself, from where and when exactly I don't know, I formed the opinion that life too short to work somewhere for someone or even at something that has no like, inner meaning of gratification (a job well done that you enjoyed, challenges and all) for a living no matter what the material compensation.
For some people there is no amount of money that would get them to let others raise their children. Certainly there are other ways that work better when they're working, like keeping the lights on and the insurance up to date. Everyone needs to do what they think is best and adjust accordingly if necessary.
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Post by minx on Jul 24, 2023 9:02:07 GMT -5
Agreed. And I 100% lucked out in finding a great child care provider. Otherwise it may have been different.
Mind you, I also only worked PT while the kids were in K-5. Started working FT again when the youngest entered MS, but was working from home, so there when they got home.
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Post by minx on Jul 24, 2023 9:07:36 GMT -5
And I was laughing about the Goddard School because it sounds so prestigious. I can see Nugget in therapy 30 years from now - 'My troubles all started when I didn't do well at the Goddard School...." I should add that staying at home PT had the wonderful effect of completely screwing my retirement savings. We didn't put anything aside for me during that time, and because I wasn't making shit my SS earnings took a huge hit too. Since I've been back FT, I've been diligent about socking bucks away in my 401(k), but if I had to rely on that I'd be screwed. There should be a way to at least credit your SS account for years you spend raising children (up until 18 if they are able-bodied, otherwise for as long as they're reliant on you), and for those who have to cut back work or drop out of the job force to care for an ailing relative. Sure there's the FMLA, but it's unpaid and only for 12 weeks. Not really a very long time.
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