A proposal for Joe Biden to provide a portion of the student loans – perhaps up to $ 50,000 per person – has gained ground since the election. I’m all for it, as long as we include those who have already paid off their loans. Here’s why.
The idea behind lending, long advocated by Elizabeth Warren, is not that loans are bad per se. The fact is that education in America has become so expensive that in order to make huge loan payments, former students postpone other commodities, such as: For example, spending their loan payments in the economy as a whole, getting married, buying a home, and putting money away for retirement.
And that’s exactly what happened to me. I attended a state school with the express aim of keeping costs as low as possible for myself and my parents (I also went to the University of Chicago and turned it down because of the high tuition fees). But I wanted to go to a good law and graduate school, and it cost me a pretty penny 35 years ago. The tuition fees in Georgetown were $ 15,000 a year, and I ended up with $ 60,000 in student loans that I had paid back over 15 years. (I had classmates at the time whose combined student and graduate loans totaled $ 120,000.) Each month, I paid $ 650 to my landlord and another $ 650 to my student loan overlords while making $ 32,000 a year as a Senate assistant. I finally paid back my loans at the age of 40 after paying a total of $ 120,000 including interest. I saved another five years and then bought a one bedroom apartment at the age of 45. As for my retirement, I didn’t contribute to it until I was 30 because I just didn’t have the money I had left. And anyone with expertise in retirement planning will tell you that losing those early ten years was a huge mistake.
This is just one example of how high student loan debt can affect your investment in your economic future …
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CyberDisobedience on Substack | @aravosis | Facebook | Instagram | LinkedIn. John Aravosis is Executive Editor of AMERICAblog, which he founded in 2004. He holds a degree in Joint Law (JD) and a Masters in Foreign Service from Georgetown. and has served in the U.S. Senate, World Bank, Children’s Defense Fund, United Nations Development Program, and as a stringer for the Economist. He is a frequent television expert who has appeared on O’Reilly Factor, Hardball, World News Tonight, Nightline, AM Joy, and Reliable Sources, among others. John lives in Washington, DC. John’s article archive.