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  • a business man
    September 13, 2012 - 07:34

    Actually, the shareholders of the banks win too, so that I good for me. I don't think student loans should be tax free. Frankly, when I went to business school and law school, I had to borrow money from the bank and I paid interest. Now, I own shares in some of the big banks and it is my turn to reap the rewards of the interest charged on student loans.

    • I Hate Banks
      September 13, 2012 - 21:59

      So you did business and law? Due to your molecular makeup, you are prone to financial survival of the fittest (I will keep my opinions on your profession to myself but I expect you are not working for a non-profit organization)....and good for you that you can afford to pay back your loans with interest and buy some stock. Keep in mind that you are probably in the 1% of the top earners. I guess it goes back to the first princples of capitalism, profits!!! And as a shareholder you are OK with a bank making a profit of $20B per year, especially because you get dividends. I expect, but am not sure, that very little profit comes from strudent loans but maybe its the interest from the student loans that are needed to pay the CEO his/her $20M a year salary. To get to the bottom of this would require a bottle of rum and some fish cakes. Cheers

    • a business man
      September 14, 2012 - 07:20

      I am not in the top 1% of earners. I wish I was, but I am probably in the top 25%-30 of earners. That said, I am working very hard to make more and more money, so maybe one day I will get to the top 1%, or maybe the top 10%. The point is I have more than enough money to retire, but I still desire to earn more and more money for the future generations of my family. Your opinion of my profession means almost as little to me as newfoundland, so you can keep it to yourself. In any case, every single action that I take is driven by profits. And no matter how much profit there is to make, there is always a way to make more profits and it is my job to find that, either through strategic means (my business background) or by legal means (my law background). I am super-duper happy with a bank making a profit of $20B per year primarily because I get dividends. I really don't care where the profits come from, but I do believe that the banks and the shareholders have a right to profit from student loans and ANY loans that are issued. As far as I can concerned, the CEO has earned his/her $20M salary by running such a successful bank. Anyway, life is about survival of the fittest, and all my decisions are about profit.

  • I hate banks
    September 13, 2012 - 00:02

    The only one that wins here is the financial institution/bank. A $30,000 loan at an annual interest rate of 5% paid back over 10 years is a monthly payment of $318 per month. Now, with a salary of $30,000 per year and applying Schwartz's recommendation, that would permit around $185 per month for loan payment depending if you use 9% of gross salary or take home after taxes. At that rate, it would take 14 years to pay just the principle. Better not have that expensive coffee!!!! Where's the logic here? Student loans should be tax-free....no government or public institution should be making money from educating our children for the future. Don't get me wrong, they still have to pay the money back....it's still a loan but it should be interest free.