Do You Really Want A Student Loan?

( left) Rotarian Bill Bradley and President Justin Rubin

Rotarian Bill Bradley’s August 20, 2024 Rotary program was based on his personal experiences with student loans. The FACTS: 43. 2 million Americans have student loan debt… that is 13% of US population. And adds up to $1.73 TRILLION ! ( higher than the GDP of Australia). BACKGROUND: How did we get here? Russia launched Sputnik on October 4, 1957. That was a jolt to America! So in 1958 President Dwight Eisenhower signed the student loan program into law to encourage “smart” students to go to college. Subsequent Presidents expanded the loan program and gave 18 year olds a “ massive line of credit” with loans from the government not banks. Then the Financial Crises hit and government reduced funding and universities increased tuition. ( Ratio of funding before 2008 was 70% government to 30% tuition… it is now 80% tuition and 20% government.). Bill pointed out that student loan debt is different from business debt so BE AWARE: *It is NOT tax deductible! * It can NOT be resold like a car! * It can NOT go through bankruptcy ! * You must use government contractors to service the debt who “do not do their job”. And * Forgiveness Plans have been nixed by the Supreme Court or have a 99% denial rate! In short, while Bill admits that he does not know what to do about student loan debt, he has an idea that might help. Stop the interest payments while still paying off the loan amount.
Bill counsels to do your due diligence before you sign up for a student loan!