[Shirene]

Just heard something wild today. One of my co worker said, “my dad told me not to pay it …[student loans]… unless the government ask for it.

My dad works in finance”. She wasn’t talking to me so I didn’t need to respond but I was so appalled lol.

For context she works 3 more years than I have been working since graduating grad school (more senior than me counting years from grad school).

I paid my school loans aggressively and I was able to do so in 2 years.

I was able to save down a down payment and already brought my first house (she’s still renting).

What in the what?

My dad and uncle also in finance.

This is the dumbest thing I heard today. Just got to vent.

Edit: it’s not that serious this is a light hearted post. And this is a non left/right post wtf yall.

There are both left and right people practicing responsible money management.

[Lisa]

Sometimes companies/jobs will pay on your student loans as a recruiting or retention bonus.

especially in gov work, but also private industry.

Also with Student loan payoffs, she may get it erased.

I’d advise pay minimal and try above tactics.

[Steve]

He is correct. Wait for the Government to pay it and just print more money.

What’s another trillion in Fiat currency on top of the 35T we already have.

America is broke – stop giving away free shit!!

[Andrew]

There is not a single student loan forgiveness plan that doesn’t require you to pay off the initial loan amount, or work in public service for 10 years, or pay a percentage of your salary for 20 years.

It applies to FEDERAL loans.

It applies to trade schools and others if the loan was federal.

So if the Govt gave you a loan, and you’ve paid off the principal, or given 10 years of your time, or paid for 20 years, then you’re eligible.

The whole idea is that the govt shouldn’t be profiting off of these loans.

They’re not “losing money, printing money, raising taxes, or passing the debt onto taxpayer.” Let’s stop with the nonsense.

[Luke]

I mean, I do not condone at all this advice. But logically speaking, with all this talk of student loan forgiveness, I wonder if there might not be some incentive for people to just take out a massive student loan, invest the float, and pray/vote for the abolition of their debts.

What quicker or easier road to wealth? Of course, this is not financial, legal, or morally advisable on any level.

I’m just talking incentives here, because as the late Charlie Munger said “all my life I’ve come to appreciate the power of incentives, and despite taking them more seriously than the vast majority of people, I always discover that I still hadn’t been taking them seriously enough.” Paraphrasing, but I’m pretty close there.

A degree and a fortune, all for free!

And don’t under estimate the power that handing out free stuff gives you as a politician.

It’s the same old story repeated over and over again throughout History, and it’s everyone in society who ultimately bare the costs — albeit, starting first and foremost with the prudent, responsible, and high integrity individuals playing by the rules that have been discarded by everyone else.

[Michael]

Well democrats are forgiving student debt and shifting that debt to the taxpayers, so that coworker of yours is now incentivized to leave the balance high and not pay more than necessary toward student loans right now.

Then hope/wait until it’s forgiven.

Being responsible is being disincentivized.

[MoBay]

It’s the same when my boss said he isn’t leaving his kids an inheritance because he had to work hard for his wealth.

He has refinance his house to the max so they get nothing.

When you hear things like this you realize everyone look at finances differently.

The reality is all these colleges and universities aren’t explaining these loans to 18 years old and how they should be repaying.

It starts when they lie to them about what their pay will be in certain majors.

[Bassel]

Just to be clear, there is no forgiveness. The lenders who granted gov backed student loans have to be paid.

The gov pays the bill.

The gov does not have money, only the people’s money (mostly in the form of taxes collected to make the gov’s own debt payments).

Then we come here and talk about tax advantaged decisions.

The loans are paid back – the question is who pays them.

[Jenn]

I’ve always found that people with finance degrees make far different decisions than I ever would.

I’ve seen a lot of car leases, increased spending with every raise etc.

I just shrug and keep doing my thing.

I retired at 53.

[Natalie]

I got scammed out of my degree so I’m not paying mine, however it is not a private loan.

If it’s a private loan it has to be paid.

They aren’t getting $17,000 out of me!

Plus we bought a house last year with no issues.

Why should I pay them? Fraudsters.

[Fiona]

So, there is some forgiveness programs after you make 100 payments right but you can ask for a modified payment plan right so for example this hypothetically say your student loans is $300 a month but you’re able to get them to accept $75 a month because of hardship those $75 payments still count as payments

[Vanessa]

Why do you care about what someone else is doing.

[Mark]

Not paying off what you owe is a bit stupid, but I’m not sure what you mean by “she’s *still* renting” (as if she’s behind).

Buying a home is one of the WORST “investments” to make if you want to be rich.

You become a slave to the lender for 30 years and have less money to reinvest to achieve FIRE.

If you take the difference between your mortgage + property tax + maintenance and the rent for a home, and invest it in an index fund for 30 years you’ll have way more in the end than the home’s post appreciation value.

[Jule]

There are a lot of interesting people out there… laugh, ignore them and stay the course.

[Author]

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