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Student Loan Debt Will Stifle Housing Market


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2011 Aug 23, 9:37am   13,651 views  55 comments

by Patrick   ➕follow (59)   💰tip   ignore  

From Patrick.net reader Tom:

Hi Patrick-

Yesterday the LA Times ran a story on UC tuition. For the first time UC tuition (after huge increases) will top the state funding for the Universities. UC graduates are your typical first time buyers. All these young people will be strapped for cash and paying off HUGE (student loans now total more than US car loans) student debts, which can not be relieved in bankruptcy.

How will buy the boomers houses in 10 years, when they want to retire?

Tom

#housing

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49   BelindaC   2011 Aug 26, 2:44pm  

corntrollio says

Furthermore, are we really going to blame people who were *kids* when their parents brought them here? That seems short-sighted. For one thing, these kids probably have almost no connection to their supposed home country. If you're a kid, and your parents brought you here, it's in our best interest to educate you and make you a contributing member of society. We should be happy that people want to better themselves.

Nobody is blaming illegal immigrant children for being brought to this country illegally. But the idea that it's in our interests to educate them for free is crazy. Bettering yourself costs money, and American taxpapers foot the bill, while American kids loose out with higher class sizes and too many dollars spent teaching English or accomodating non-English education. Taking it to the college level just compounds the problem.

50   corntrollio   2011 Aug 29, 5:18am  

BelindaC says

But the idea that it's in our interests to educate them for free is crazy.

That's fallacy #1. It's not for free, and it is in our interest to give them in-state tuition. Out of state tuition subsidizes everyone else these days -- not the other way around. Furthermore, it is in our interest, because your solution causes the potential student to become an unskilled worker, which will ultimately cost us more and will never help our economy.

BelindaC says

too many dollars spent teaching English or accomodating non-English education.

That's fallacy #2. Plenty of these kids have been here for years, to the point where English is basically their first language.

BelindaC says

Taking it to the college level just compounds the problem.

I'd love to know who these children are that don't speak English but are somehow magically going to college here.

The extremists say "deport them all," but that is incredibly expensive, as shown by every study, and would lower GDP significantly. Deporting an 18 year old who has basically lived here all their life and who wants to better themselves and become a contributing skilled worker in our economy seems exceedingly stupid. The virtues of sensible immigration policies include incentivizing skilled workers to be here in order to grow our economy.

51   madhaus   2011 Aug 29, 6:10am  

BelindaC says

Bettering yourself costs money, and American taxpapers foot the bill, while American kids loose out with higher class sizes and too many dollars spent teaching English or accomodating non-English education.

I, for one, am always intrigued by I've-got-mine-Jack types who belittle immigrants for any number of reasons, but can't properly use the only language they know.

Investing in education makes sense. We gain so much more than we "loose." Unfortunately, people who weren't paying attention in school feel qualified to decide on the future of education for everyone.

52   EBGuy   2011 Aug 29, 8:52am  

I'm going with PRIME on this one; the revolution will not be televised. I expect Khan College to be online by the time my kids are ready to head off to school. The education racket is about to be disrupted... (or sustained, or shaken up, YMMV).

53   thomas.wong1986   2011 Aug 29, 9:15am  


All these young people will be strapped for cash and paying off HUGE (student loans now total more than US car loans) student debts, which can not be relieved in bankruptcy

In the case of some professions, like CPAs, on going education continues during your career. Its not cheap, and required to keep your license. It can be 2-5K a year for CPA seminars and it comes from your own earnings.

54   corntrollio   2011 Aug 29, 9:19am  

thomas.wong1986 says

In the case of some professions, like CPAs, on going education continues during your career. Its not cheap, and required to keep your license.

Lawyers have continuing legal education. If your employer provides a lot of it, it can be cheap, otherwise not. I believe doctors have continuing requirements as well, and occasional re-licensing in some cases.

55   AdamCarollaFan   2012 Jan 12, 3:10am  

You tell me college is expensive? For clueless poly. sci. and theater majors, perhaps.
Fisk says

You tell me college is expensive? For clueless poly. sci. and theater majors, perhaps.

so smug, yet so true.

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