Posted on 07/09/2023 9:20:37 AM PDT by Libloather
Jarrett, 38, isn't feeling too hot about President Joe Biden's new plan for student-loan forgiveness.
After graduating with an undergraduate degree during the 2008 financial crisis, Jarrett - who requested his last name be withheld for privacy but whose identity is known to Insider - was laid off from his job. He decided pursuing an MBA would make him more appealing to employers, so that's what he did, and he graduated with his advanced degree in 2012 with the help of student loans.
But Jarrett said the degree didn't pay off as intended. For years after graduating, he struggled to find steady employment and placed his initial student-loan balance of about $60,000 on forbearance. During that period when he was not making payments, interest was still growing, and it surged his balance to about $80,000.
Now, Jarrett's student-debt load is just over $101,000, according to documents reviewed by Insider - and he doesn't see himself ever paying it off.
"I'm never going to be able to pay it down," Jarrett told Insider. "The interest rates on them have put me in a trap where it is literally impossible to do. The interest is accumulating faster than I can put any money down on it, making it impossible to get out from under if you're not being compensated at a much higher level than I've had."
Jarrett now works in the energy industry and earns five figures. He said he felt "fortunate" to be able to live reasonably on his salary during the student-loan payment pause - but that could all change soon when payments resume in October without Biden's broad student-loan forgiveness. At the end of June, the Supreme Court struck down the president's plan to cancel up to $20,000 in student debt for federal borrowers...
(Excerpt) Read more at businessinsider.com ...
There is no way this guy could graduate from an MBA program without knowing how to calculate compound interest and loan repayment schedules. Either this is complete BS or he's just a lazy SOB who won't work.
I’m with ya, but technically he did borrow that money. He placed his loan in forbearance which in reality is an extension to his loan. anyone his age claiming ignorance he didn’t understand the terms of the loan is a moron. Placing the loan in forbearance and then paying only the minimum is allowing the lending institution to essentially loan more money as the interest accrues. Call it whatever you want but bad decisions have bad consequences, thems the breaks.
Sounds like he way over estimated his ability to land a $100,000+ a year job and keep it.
He obtained an MBA but doesn’t understand that a loan needs to be repaid. I have no sympathy for this man.
Sad. Numerous young people who lack prudence and thriftiness are encouraged to go to college. As a result, numerous young people are stuck with huge loans. Parents need to stop encouraging college. Young people need to learn the joy of having credit. Ignoring huge loans is like having a rock in one’s shoe. Half of college graduates wish they could return their degree for a full refund. Growing up with a mother and a father and weekly church attendance solves a lot of problems.
They have to pay all the DEI staff as well as all the deans in the schools of gender and ethnic studies.
Your math is deficient: six figures starts at 100,000, five figures ends at 99,999.
I have avoided it as much as possible and my life (Debt free) is better for it.
I looked into getting a MBA several decades ago. I ended up not doing this. For me, it was a dollars and cents issue. I had economic and time boundaries not to be exceeded and my spouse was a partner in the decision. Everyone will be in a different boat but it's damn important to accurately define boundaries before leaping into any post graduate degree.
For anyone considering a MBA and you're not a business degree major with your bachelor degree, it gets a bit more complicated $$$ and time wise. I was looking at two options.
Option 1 was very traditional and through my alma mater. Added to the MBA courses were several bachelor level business college classes. Lowest $$$ outlay but a semester or two longer duration because of those pesky prerequisites.
Option 2 was via a familiar to me private college. Higher tuition but fewer hours thus a lower time investment. Two big pluses this route. First is that their MBA program was structured to cater to persons like me with non business degrees. Fewer semesters and classes required. A bonus was the availability of a semester abroad in Singapore via a coordination arrangement between the two university.
Ultimately I decided against the MBA path. The traditional path of option 1 was way too expensive. Dropped off the option list fast.
The option 2 path came real close to being implemented. Academically, many of the classes were taught by presidents of regional companies. Real world vs. academics, oh yeah. It crashed for me though on $$$. Tuition was several times more than the state university. Ouch. To offset this, I was offered a job to teach the chemistry labs for the nursing program. Ultimately we were not able to close the gap on $$$. I was paying some and they were paying me some - The gap was too large for my boundary.
They don’t mention what his degree is..
Perhaps basket weaving?
Maybe wymen’s studies?C’mon man, tell me the whole story
Look at Fauxcahontas. One class and she’s getting paid a million bucks.
Apologies - I painted with way too wide a brush.
I’ve been to 3 different schools, all part time, to get my degree. The community college was decent, though it did have a couple of those big room classes with 70-100 students. Cleveland State was mostly a horrible experience, with the huge auditorium classroom for Chemistry, and an instructor that barely spoke English.
Mixed bag on a couple of other classes. Calc 1 was great, great instructor, calc 2 was the opposite with an unapproachable professor that was always the last to enter the room and the first to leave. Then there was the special “group IV” required class that tried to teach the “urban experience” and blame the banks for the city of Cleveland not paying back the money it borrowed and therefore going bankrupt.
I switched to Baldwin Wallace for my last year and a half. All night and weekend school. Mostly good instructors and professors, with a couple of exceptions. Yes, even at a school connected with the Methodist Church, you had a couple of “those” instructors that would give you bad grades if you didn’t agree with their views on abortion and such.
Economics, accounting, and business law were my favorites, though I really wanted to do the engineering path. But I was already in a decent paying job and could not get the classes I needed to match my work schedule. So I did what I could.
Oddly, my degree has absolutely nothing to do with my line of work. But it gave me a marketable piece of paper to go with my real world experience and that was helpful when I decided to relocate 20+ years ago.
If the fed ever gets its boot off our necks, your kids will be prosperous beyond your wildest dreams.
I made 6 figures in my first job, washing cars during and right after High School. Of course, 2 of those figures were to the right of the decimal point. :)
You signed on the line, promising to pay it back.
It sucks, but here we are.
I agree.
Eliminate student loans and watch the cost of college drop like an anvil.
I mean, a student loan is basically an unsecured loan. No collateral. A home loan, they can repo the house. Ditto for a car loan. This is more like a credit card loan and the interest rates should reflect that. But they don’t.
You know it. And you know not only does she depend on a TA that tge univ pays for, but poc-tas does not even have any parameters for attendance that tge school puts on her or enforces
This sham really needs out- age
It’s like the military in the Carter years. A total free for all.
No hope for a dope.
But the whole article reads like a puff piece for loan forgiveness. No one can be that stupid....er, maybe they can...
Probably big money back then. During HS, I was a scorekeeper at the local bowling center. Kept me in pinball money.
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