Tax and loan are two entirely different things.
I was talking to one of my daughters today. She was saying that it is ridiculous that the interest rate on her car loan is only 3 percent while the interest rate on her student loan is more than double that. Such gouging is no more than a tax that is being imposed on the middle class. It is especially disgusting at a time when Republicans are proposing tax cuts that will benefit the wealthy.
Tax and loan are two entirely different things. If I was to make a list of the top 1000 issues facing the middle class today, student loan rates would not even make the list.
I was talking to one of my daughters today. She was saying that it is ridiculous that the interest rate on her car loan is only 3 percent while the interest rate on her student loan is more than double that. Such gouging is no more than a tax that is being imposed on the middle class. It is especially disgusting at a time when Republicans are proposing tax cuts that will benefit the wealthy.
Equivocating loans and taxes is essentially moronic, period.
What is moronic is ignoring that the average student indebtedness is over $28000 for students today. Students who recently graduated like my daughter face the task of repaying student loan debt. Of course people who are either too old or wealthy think that this topic is irrelevant. But to the many students facing this task, it is essentially a tax that is eroding the middle class.
The problem is not with the student loans, it is the tuition costs that the loans are taken out to pay.
Absolutely. They aren't forgiven with bankruptcy, can be taken out of federal tax returns and if deliquint the government can remove professional licenses. If anyone making an income pays back their loans the gov is going to profit from the 6%+ interest rates. If I take out the 20 year repayment plan they'll make almost double what I took out.
Not to mention after 75k income (I believe) your interest on the loans are no longer tax deductible. I believe they view them as a form of revenue for the government, not necessarily a public service to students.
The interest rates are too high. Again my daughter's student loan interest rate IS MORE THAT DOUBLE the interest rate on her car loan.
If tuition was reasonable those loans may not to have to be taken in the first place or a smaller amount will need to be borrowed. Tackle the root of the problem not the symptom.
I don't think the 75k statement is true.
From what I understand for singles the limit is 80k now, although I could be misinterpreting or wrong about it.
Publication 970 (2014), Tax Benefits for Education
If the government is profiting from the spread in interest rates, it is a source of revenue for the government and as such is, in effect, a form of taxation.
What is moronic is ignoring that the average student indebtedness is over $28000 for students today. Students who recently graduated like my daughter face the task of repaying student loan debt. Of course people who are either too old or wealthy think that this topic is irrelevant. But to the many students facing this task, it is essentially a tax that is eroding the middle class.
I was talking to one of my daughters today. She was saying that it is ridiculous that the interest rate on her car loan is only 3 percent while the interest rate on her student loan is more than double that. Such gouging is no more than a tax that is being imposed on the middle class. It is especially disgusting at a time when Republicans are proposing tax cuts that will benefit the wealthy.
Revenue != tax. You seem really confused about what taxes are.
It's a representation of risk. If she fails to pay her car loan they repossess her car, and get some of that money back. If she fails to pay her student loan (which is probably more likely) they have no financial recourse.
And a college degree increases average wages about 900k to 1 million over a lifetime. Maybe it is time to stop crying and actually be thankful for such programs.
I was talking to one of my daughters today. She was saying that it is ridiculous that the interest rate on her car loan is only 3 percent while the interest rate on her student loan is more than double that. Such gouging is no more than a tax that is being imposed on the middle class. It is especially disgusting at a time when Republicans are proposing tax cuts that will benefit the wealthy.
So during this discussion, did the topic of collateral come up?
The purpose of the loans in to facilitate education, not to create a source of revenue for the government. Over and above that, the government has an effective means of protection in case of default in the form of wage garnishment. As such, there is no need to charge excessive interest rates.
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