Student Loans and inflation

Discuss various money matters here. Loans (federal and private), scholarships, lottery winnings, or other school finance related information and queries.
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Nickg415
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Student Loans and inflation

Postby Nickg415 » Wed Jan 30, 2013 4:43 pm

simple question: Do government issued student loans adjust for annual inflation. If not can you use this to make an argument to space out your payment plan (especially considering the fact that payments on interest are tax deductible)?
Last edited by Nickg415 on Wed Jan 30, 2013 4:54 pm, edited 1 time in total.

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cinephile
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Re: Student Loan and inflation

Postby cinephile » Wed Jan 30, 2013 4:49 pm

The interest will be higher than inflation.

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Nickg415
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Re: Student Loan and inflation

Postby Nickg415 » Wed Jan 30, 2013 4:52 pm

True but assume that interest follows the long term average rate of inflation of 3.42. I don't know what the average interest rate for graduate loans are but it seems as though if you simply pay the tax deductible interest rate then over time inflation will begin deflating the principle amount. Is this correct?

09042014
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Re: Student Loan and inflation

Postby 09042014 » Wed Jan 30, 2013 4:55 pm

Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.

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WhiteyCakes
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Re: Student Loan and inflation

Postby WhiteyCakes » Wed Jan 30, 2013 4:57 pm

Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


Fucking shitboomers

exitoptions
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Re: Student Loan and inflation

Postby exitoptions » Wed Jan 30, 2013 5:02 pm

WhiteyCakes wrote:
Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


Fucking shitboomers


I bet congress will end this deduction before most of us dig our way out of student loans and can afford to take advantage of it...

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fatduck
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Re: Student Loan and inflation

Postby fatduck » Wed Jan 30, 2013 5:05 pm

exitoptions wrote:
WhiteyCakes wrote:
Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


Fucking shitboomers


I bet congress will end this deduction before most of us dig our way out of student loans and can afford to take advantage of it...

i'm sure in about 10-20 years congress will eliminate the mortgage interest deduction and replace it with a retirement home interest deduction.

09042014
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Re: Student Loan and inflation

Postby 09042014 » Wed Jan 30, 2013 5:08 pm

fatduck wrote:
exitoptions wrote:
WhiteyCakes wrote:
Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


Fucking shitboomers


I bet congress will end this deduction before most of us dig our way out of student loans and can afford to take advantage of it...

i'm sure in about 10-20 years congress will eliminate the mortgage interest deduction and replace it with a retirement home interest deduction.


And a reverse mortgage bonus.

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Drake014
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Re: Student Loan and inflation

Postby Drake014 » Wed Jan 30, 2013 5:13 pm

Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


I just looked this up now... I'm so sad.

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Nickg415
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Re: Student Loan and inflation

Postby Nickg415 » Wed Jan 30, 2013 5:15 pm

Drake014 wrote:
Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


I just looked this up now... I'm so sad.


Thank you for the help everyone. My situation is much clearer now. I guess the only question I have remaining is whether we take our revenge on younger generation once we finally wrench control of this country out of the cold shriveled hands of the shitboomers. Or do we show them the fairness that we wish had been shown to us?

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fatduck
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Re: Student Loan and inflation

Postby fatduck » Wed Jan 30, 2013 5:17 pm

Nickg415 wrote:
Drake014 wrote:
Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


I just looked this up now... I'm so sad.


Thank you for the help everyone. My situation is much clearer now. I guess the only question I have remaining is whether we take our revenge on younger generation once we finally wrench control of this country out of the cold shriveled hands of the shitboomers. Or do we show them the fairness that we wish had been shown to us?

it is my understanding that when the last boomer dies, a nuclear dead man's switch is triggered and the world will end in a nuclear holocaust

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Nickg415
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Re: Student Loans and inflation

Postby Nickg415 » Wed Jan 30, 2013 5:22 pm

Well damn that will erase my student loans quicker than any inflation rate will be able to! That is of course assuming we do not cryogenicly freeze the bastard in a cold eternal state of misery.

Scrambles84
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Joined: Sat Jan 05, 2013 11:08 pm

Re: Student Loan and inflation

Postby Scrambles84 » Wed Jan 30, 2013 5:57 pm

fatduck wrote:
Nickg415 wrote:
Drake014 wrote:
Desert Fox wrote:Interest is 4%+ more than average inflation, even more than current inflation.

Interest isn't deductible if you make over 75K. But your boomer parents McMansion's interest is.


I just looked this up now... I'm so sad.


Thank you for the help everyone. My situation is much clearer now. I guess the only question I have remaining is whether we take our revenge on younger generation once we finally wrench control of this country out of the cold shriveled hands of the shitboomers. Or do we show them the fairness that we wish had been shown to us?

it is my understanding that when the last boomer dies, a nuclear dead man's switch is triggered and the world will end in a nuclear holocaust


I'd laugh out loud at this but I'm currently at work and this place is infested with boomers.

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Tiago Splitter
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Re: Student Loans and inflation

Postby Tiago Splitter » Wed Jan 30, 2013 8:59 pm

Just keep supporting the easy money policy of the Fed. Eventually inflation will catch up and 200K in student loans will seem like nothing. At least that's what I'm counting on. If I'm not carting a wheelbarrow full of money to the store to buy bread by 2030 I'm gonna be pissed.




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