Comments on Boston Gal's Open Wallet: How about a bailout for student debtors?

Mortgage rates are low because it is a secured loa...

2009-10-16T15:37:23.229-04:00

Mortgage rates are low because it is a secured loan. Meaning, if you default, then the lender gets possession of a real property. Student loans (like credit cards) is an unsecured loan. Meaning, if you default, they are pretty much out of luck, other than to put a collection record on your credit history.

As for getting tax breaks, well, that's just flat out politics. If you want to change the laws, then organize a few of your rich friends, form a PAC, contribute tons of money to get time in front of congressmembers, and deliver votes. There's nothing about our tax law that is logical; it is purely political.

One of the things you will realize is that young people (a.k.a. students) have almost NO political clout. The real estate industry (lenders, realtors, home owners, etc) are one of the most powerful constituents. The reason: young people don't vote and have no money.

As law student, I have many friends with $100K ded...

2009-10-15T21:15:15.612-04:00

As law student, I have many friends with $100K dedts and they're sure going to be making more than $50K. The AGI limit that allows for tax deduction of student loan interested should be readjusted. While I am not for a student bailot the person profiled makes a good point that its cheaper to take money out to buy a home now than to be a student.

As a graduate student who is piling on more studen...

2009-10-15T17:27:54.729-04:00

As a graduate student who is piling on more student loan debt, I'd be all for this idea!

Consolidation is a tricky solution. A student is ...

2009-10-15T09:47:02.555-04:00

Consolidation is a tricky solution. A student is only allowed to consolidate once. Whatever the going interest rate at the time is set for the reminder of the time the loan is being repaid. I know because I consolidated back in 1999 when the rate was 8.25 percent. the good news is that the consolidation rate is around 4% which is better than any of the rates being paid now.

Those interest rates will take a toll on him. I wo...

2009-10-14T14:47:14.471-04:00

Those interest rates will take a toll on him. I would suggest to him is to consolidate the loans. Consolidation also helps one to save a little as well.

I hate that an 18 year old can get sucked into suc...

2009-10-14T13:16:41.628-04:00

I hate that an 18 year old can get sucked into such a massive debt. I'm not sure if a bailout would be the solution, but just like with mortgages, there should be some regulation as to the amount of debt that a young person can sign on to. There is a point (especially with private universities) where a student just can't afford that type of bill.

I am not looking for a bailout or even a reduction...

2009-10-14T10:44:52.246-04:00

I am not looking for a bailout or even a reduction in rates on my loans (over $65,000 for grad school). I believe in personal responsibility and a deal is a deal. How about letting my loan interest be tax deductible? Currently, tax deductible student loan interest phases out about $50,000 in AGI. I say why? and frankly if youwent to school and grad school, you should be making more than this meaning you get non deduction for you investment in your future. With homeownership you can duduct much more.