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Student Loan Debt Curbs Housing Market by $83 Billion, Study Says


AaronBlaine
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If someone is smart and is a good worker, they can end up with great jobs from the lower priced colleges as well.  Not worth paying huge amounts to these schools for their name recognition.

 

 

Believe me it all depends on what field your going into....My daughter is in higher education and does internships and exchange programs for grad. students...

 

Her significant is an engineer...he worked his way through private University by being the top of his class the University payed for his masters...just to keep him there...and he was one of few that got payed internships from companies....where he went figured into who courted him after he earned his degree and helped in what was offered

The same with our daughter...though in the end it was the school she got into for her Masters in the studies that she took.

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Great post.. I'm dealing with it right now with one of my rehab houses I have on the market. The buyer is having a hard time with the loan as his fiances school loans are in the way of the sale. They have gotten all 3 loans deferred as she is still in school and will be going to underwrites next week. Hope it works out for them. Need this house sold to get into a few more properties.

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There are plenty of high priced schools that do offer a good return on investment.  There are far more of them that do not.  The high priced but lousy schools get away with charging those high prices because there are plenty of people who can afford to send their kids to these schools without regard for potential return on investment- in most cases, those kids couldn't get into the better schools.  But, since a college education has become the norm, these schools have no trouble filling their seats.  Like it or not, there is a lot to be said for 'name recognition' when it comes to where your degree came from.  College is no different from any other purchase or investment- you have to do your research, pick the right field of study, pick the right school, make the right connections, get good grades, etc. , etc,....and you'll get bang for your buck.  Simply pissing away another four years at a high priced run of the mill school to collect a meaningless degree in an low-demand field will get you nothing but four years older and, possibly many more years of debt.

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When recruiting I am less concerned about the name of the college or even GPA as I am with applicable internships and a proven record of employment. Show me a kid not working summers, never worked in High School and I am passing. If I have a candidate that is out of school 4 years and has had more than 2 employers, I am passing.

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I understand wha you mean, Culver.  And, I do the same thing.  But, I think that within certain fields, there are particular schools that are known for producing the best grads.  And, I think many employers are looking for those schools on resumes.  Also, many of the bigger name schools have very powerful alumni associations that connect their new grads with prospective employers, who usually are alumni themselves or have some other connection to the school. 

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My take on name recognition schools has always been that if you come from an "upper crust" type background, they may pay off.  If you attend Harvard, and are the son of a well-known doctor, you will get a great job from the get go, even if you were a lousy student.  Of course that doctor could afford sending his kid to that high priced school.  If you attended Harvard and are the son of no one in particular you probably won't get that great job even if your grades were top notch.  So "name recognition" does have it merits even beyond college names.  That is why I recommend that kids from lower to middle class backgrounds should stick with lower priced schools, even if they are very bright.  How much can that high paying job really be worth if you have a HUGE debt to pay off for years to come?  Better off settling for a lesser job, with little or NO debt in my opinion.  

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We put out a new way to rank colleges this year. It was really well received…….

To find out which of the nation’s roughly 1,500 four-year colleges offer the most bang for your tuition buck, MONEY screened out those with a below-average graduation rate and then ranked the 665 that remained on 18 factors in three categories: educational quality, affordability, and alumni earnings provided by PayScale.com. (Enrollment, acceptance rate, and H.S. GPA data is for the 2012-2013 academic year, the latest that was available from the Department of Education.) Included: a “value added” grade that rated each college in light of the economic and academic profile of its student body and the mix of majors at that school. We then used a statistical technique to turn all the data points into a single score on a five-point scale and rated them accordingly. These schools went to the head of the class.

http://time.com/money/collection/moneys-best-colleges/

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 Also, many of the bigger name schools have very powerful alumni associations that connect their new grads with prospective employers, who usually are alumni themselves or have some other connection to the school. 

 

 

Again, I think this depends who the student is.  If the student is from some working stiff family, he will NOT get the same treatment as a student from an upper crust family.  This type of snobbery has been going on forever and it surely hasn't ended yet.  It's still alive and well.  Some students from modest backgrounds can make their way thru it, but most will not. 

 

 

 

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I am a certified welder and machinist.....currently I run and program a 5 axis cnc machine

Any kids looming into a trade, I would suggest welding. Not just any welding because the market is flooded with sheet metal and structural welders. Pipe welding is a trade that will be sought and paid well for the next 20 years. I have 3 kids in their mid 20s' making six figures.

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Any kids looming into a trade, I would suggest welding. Not just any welding because the market is flooded with sheet metal and structural welders. Pipe welding is a trade that will be sought and paid well for the next 20 years. I have 3 kids in their mid 20s' making six figures.

Yes I am certified pipe but don't want to travel as I have 2 lil kids so I don't pipe weld now. ...and the factory I work in pays machinists more than welders so I am a machinist. ...but pipe or not 7-8 yrs ago when I graduated college you couldn't find a job
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If they forgive college loans,I'd guess my wife will be on a roof top somewhere with my .270.

I'm a freaking fireman and she works part time in an office,and we paid cash for our two kids college. Ones an RN at Strong the other is finishing her masters and already has a job with one of the big four accounting firms when she gets out next May.( CPA)

If one saves,invests lives below their means,they can send their kids to state school .Or you can drive expensive vehicles ,live in large homes and so forth and put your kids in debt . Your choice Just don't ask me to pay for it.

If loans are a kids only way ok, Live at HOME and commute ,its room and board that costs the most. But no they want " the college experience " well then you want it you pay for it.

We did for our kids.

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If they forgive college loans,I'd guess my wife will be on a roof top somewhere with my .270.

I'm a freaking fireman and she works part time in an office,and we paid cash for our two kids college. Ones an RN at Strong the other is finishing her masters and already has a job with one of the big four accounting firms when she gets out next May.( CPA)

If one saves,invests lives below their means,they can send their kids to state school .Or you can drive expensive vehicles ,live in large homes and so forth and put your kids in debt . Your choice Just don't ask me to pay for it.

If loans are a kids only way ok, Live at HOME and commute ,its room and board that costs the most. But no they want " the college experience " well then you want it you pay for it.

We did for our kids.

This had nothing to do with forgiveness for me strictly the fact that our govt allows our banks to profit off kids going to further their education.....how much more would you have paid in interest at 13%....it's rediculous
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College costs average 30k a year not incl dorming costs, that brings it close to 40k a year. We have a whole generation that is being put into servitude and that's not American. I'm hearing some of the familiar Conservative farts in the wind that education shouldn't be free or that parents should have saved the 600k for their 3 kids college costs, that's all hogwash. No one wants free education, we want affordable education, and this problem of our young people being saddled with this debt will surely sink this country.

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I'll post another article from our website you all should read it if you have kids of the age:

http://time.com/money/3387201/student-loan-repayment/

That article is BS....have you tried any programs....i have they all want you to pay them big money to call your loan company and try and lower debt.....y hey don't do squat...I've called them all I've tried everything. ....once you default your done might as well give up its impossible to get out of the hole.
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In this whole thread, and maybe I missed it, no one had talked about the reason the cost of college is so high. It consistently out paces inflation by a large margin.

College loans are guaranteed by the government, the lender has zero risk. If you default and don't pay the government covers it. If I remember correctly that's why they are not forgiven in bankruptcy. This leads to a market where there is a large amount of money available to people to spend. Economics tells us that when there is more money prices will rise because the market can bear the increase.

Guaranteed loans are always a terrible idea, because the lender has no incentives to make good investments. They will give the money to anyone because there are only two outcomes, the person pays back the whole loan at x% or they default and the loss is limited to the cost of administration of the loan.

Since there is so much free money, colleges start to differentiate themselves on price. More money means better education right? This is a race to never ending price hikes. So Lots of kids with little understanding of the financial implications, lots of risk free money, and colleges with no price competition leads to a market where too many kids go to college unnecessary and have no marketable skills. We don't need to be like Ireland and let the government regulate free college. Let the market work like it used to and have the employment market adjust.

Sorry if this is poorly written, I am on my phone.

Sent from my Nexus 5 using Tapatalk

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