Mar 1, 2012

Education Costs

A friend shared the following video on facebook:

Oh, those crazy assumptions that education is free in Germany! IT IS NOT!

The system works slightly differently: Americans take on debt to pay their individual tuition back. In Germany all taxpayers are your lender and you will pay them back through extremely high taxes:
Income Tax
Let’s do some math here:
1. The average student loan debt is $25,250
Over 30 years of professional life that amounts to $841.67 per year
2. The average federal income tax paid is $6275.18 per year.
3. Now applying the American numbers to the German logic you would pay zero student loan, saving you $841.67 per year. Also you would pay roughly double the income tax, costing you $12,550.36 per year.

In what kind of thinking is paying $500 more per month cheaper?

Okay, granted, foreign students, using the system that is paid by locals really fare better and I guess that is what makes the above clip worthwhile.

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