Post and share all your political and economic ideas & solutions. Let's fix what's broken! Join free.

How do we realistically reduce student debt? (Viewed 8129 times)
Standard
Posts: 195
Rating: 7

This topic is focused on solutions to reduce the outrageous level of student debt.

Founder of USelections.com
Standard
Posts: 195
Rating: 7

3 Colleges That Have Reduced Amount Of Student Debt

http://nationswell.com/3-colleges-affordable-less-loan-debt/

"In stark contrast to many other universities, each of these colleges keep their students’ loan debt at least 50 percent lower than the national average. How do they remain academically solvent while not piling debt on their graduates?..."

Founder of USelections.com
Standard
Posts: 195
Rating: 7

How Australia Gets Student Loans Right

http://www.theatlantic.com/education/archive/2016/03/australia-college-payment-model-exposes-shortcomings-of-new-american-version/473919/

"Graduates don’t have to start making payments for their college educations until they reach a salary equivalent to $39,152—and they pay no interest."

Founder of USelections.com
Standard
Posts: 195
Rating: 7

Since Governor Bill Haslam signed Tennessee Promise into law, it has gotten A LOT of attention from other states and education experts around the country.

What is Tennessee Promise?

This statewide program, offers eligible high school seniors the opportunity to go to one of the state’s 13 community colleges or 27 colleges of applied technology tuition-free.

Initial Results:   

http://www.tennessean.com/story/news/education/2016/04/07/tennessee-promise-boasts-80-percent-retention-rate/82749838/

"Data released by the Tennessee Higher Education Commission showed an average retention rate of 80.6 percent for the 16,291 students who used the scholarship program to go to community or technical college tuition-free." Read more...

Tennessee Promise

http://tnpromise.gov/

Tennessee Promise offers two years of tuition-free community or technical college to Tennessee high school graduates beginning with the Class of 2015. Tennessee Promise is a last-dollar scholarship, meaning it will cover college costs not met from Pell, HOPE, or TSAA.

Founder of USelections.com
Standard
Posts: 2
Rating: 2
Honestly, I feel my education should be considered a capital asset/expense. I had to spend this money in order to create a higher wage earned for myself. If I could deduct the whole amount that I pay back each year, this would not only allow me some refund of my paid in taxes, I could pay off my student loans quicker. Only being able to deduct the interest yearly on the student loans is crazy. When I consider my student loans for my higher education, I consider that I have an asset in myself. However, a higher education is considered non-capital, such as land. What is the difference between a farmer going out and buying a tractor in order to create a living? In comparison, with students investing in themselves, to create a living? We are being penalized because we want to do better for ourselves. Businesses are able to deduct capital purchases each year....yet as students, because education is not a tangible or visible object...nothing is allowed. Even businesses with intangible purchases, such as inventions, logo, or brand names, can consider these as assets purchased and thus depreciate out or deduct most all the cost in a tax year. Is anyone seeing this different than I am? I want to pay my student loans...I do not want a hand out from the government. However, when it comes to tax time...I want a break just like everyone who is investing in capital assets.
Standard
Posts: 195
Rating: 7

Brenda, that is a fine point and a new perspective I hadn't thought of!

The more it sinks in, the more I like it.

Why not consider education a capital asset / expense? Deduct the whole amount. Fair is fair.

As a business owner, I can deduct just about anything and everything that pertains to my business.

A student should be able to do the same. Students are solely investing in their future.

What really pisses me off is how the system currently works. Universities purposely no longer receive adequate funding from states or government because they all conspired & came up with this insane idea: "hey, let's make up the difference in funding requirements by raising tuition exponentially, set up a scam whereby students can get loans they can never possibly repay without severe lifelong hardship, and BINGO! The universities get their funding, the states & government can reallocate money elsewhere (flush it down the toilet), and this will leave students s-c-r-e-w-e-d. Everyone happy, right?"

Ughhh. No! We've become a society of debt slaves.

Founder of USelections.com
Standard
Posts: 195
Rating: 7

Currently, the IRS offers education credits, tuition and fees deduction (up to $4,000) and student loan interest deduction (up to $2,500).  

Any student unfamiliar with current credits and deductions, do yourself a favor and visit:

https://www.irs.gov/uac/tax-benefits-for-education-information-center

Don't pay a penny more than you have to.

Founder of USelections.com
Standard
Posts: 2
Rating: 2

Jeff...thank you for replying so nicely to my post. Yes, I was aware of the IRS credits/deductions for higher education, but I did not mention them because they are so limited and trivial. First problem is that they have to be taken in the year that they occurred. As you know with your own business, who needs it when your income is already at a low point. We need those credits in the years that we actually start making higher salaries. I like to think of it as a carry forward loss that we, the students do not get. Businesses are allowed to carry forward losses, but students are not.

2nd problem I see is that the credits are so limited as to what they allow. For wage earners who come from families that cannot help them...housing, vehicles, and etc...these items are not included. And are the students supposed to sleep on the street while attending college? And once again...the low wage earning parents do not need these deductions in the year that they occur (standard deduction usually takes care of this), so these credits really are trivial to poverty level portions of the population.

Hope I am making sense. 

Standard
Posts: 195
Rating: 7

Yes Brenda, you are making sense! :)

The current IRS credits and deductions are pathetic and limited. I pointed them out for one reason: the tax code is so complicated that some people may not even be aware of them.

The student debt crisis needs reform immediately or BOOM... the $1+ trillion student loan & debt bubble will inevitably burst. Sadly, the universities and states will make out fine since they are well represented by influence & lobbyists, however it's the students who will be even more screwed than before and the American taxpayer will foot this bill too.

Founder of USelections.com

Boost Your MOTIVATION & SUCCESS
Enter our upbeat realm of self-help & personal developmentLive better. Be happier. Start now.
The K.I.S.S. Method Works
Enter our intimate realm of love and relationships. Feel more desirable & confident now.
FREE $200. A Gift From Me.
Save up to $200 at over 1 MILLION hotels and resorts. Activate now. Use later. Get one here.