Why do those in academia keep repeating the line that the "vast majority" of graduates have modest, manageable debt? Has that been your experience?
I think some of these people who call our student loans modest needs to take stats 101 once again. 31% default rate and I think it will continue to rise, a 31% default rate is not modest to say the least. That is about as high as credit card defaults.
Obviously this university representative did not take a basic statistics class which could explain what average, median, etc. meant to her. The average doesn't mean anything significant when it factors in the 1/3 of graduates that have NO debt when they graduate (and that's merely not fair). It also has very, very low estimates of graduate education debt. It upsets me because a lot of the promises that this administration thought of during their campaign will never come to fruition. The current system punishes people that do not come from wealthy backgrounds and those who want to further their education as much as possible. Did anyone else realize that many universities receive "kickbacks" if a student chooses a particular lender? They don't openly admit it, but many of them do and they may steer you towards a bad lender for you in order to receive kickbacks for a very long time from your borrowing.
This administration isn't focusing on education as you may think - the "thousands" of jobs that they are creating requires a strong pair of hands - that's it. When he starts creating jobs for university-educated people (and companies stop outsourcing these jobs), he may realize the importance of this concept. Until then, we need to hold our breaths... :(
I read that the student loan default rate was at 31 percent. With almost 1/3 of students defaulting, I don't see how anyone could claim this is manageable. And that is just the number who defaulted. You also have to consider all those people who are struggling to make the payments each month with no money left over to put into the economy. Private student loan companies like Sallie Mae are predatory lenders. Because of the laws that were passed protecting their rights to collect no matter what, they don't care how much they lend out, they know they will be able to collect whether it destroys lives or not.
Wow, the exact thing I was thinking! I am struggling with Sallie Mae as I write this. I am temporarily disabled and need some time on my loans. They tell you all these fancy things and make you believe it's all ok. But in reality, you get screwed! They told me one thing and did another. All to get their precious money. How does a person pay for things when they have no money to give?
Why do those in academia keep repeating the line that the "vast majority" of graduates have modest, manageable debt?
They have a strong vested interest in the 'system' of student debt. The academic loan officers work in conjunction with the student loan companies. (A few years ago there were a number of criminal cases where the relationships became too public and too close.) If students don't take loans, go into debt, then they can not pay the schools. Saying the debt is "modest and manageable" encurages the students/families to take out loans to pay the schools. Once the schools have the money in hand the loan officers are done and looking forward to 'helping' next goup of students find a way to pay for school. They do not service the debt or worry about repayment except in the abstract.
Of course the banks make millions on the fees, interest, penalties, etc. all assured by the gov. So they will do all they can to convince the students borrow. And yes, that includes lie. The finacial wizards lie to eachother (junk bonds, derivitives, Enron, Maddof, are a few examples) so there is no reason to think that they don't lie to the public, students and families.
I do NOT have modest debt. I went to the best institution that I could attend, to get the best possible education that I could get. In the end I walked away with a BA in environmental science and a Master of Teaching in secondary sciences. I knew early on that I wanted to be an educator, but I also knew that I was in one of the best programs around. I chose not to sacrifice my education for my purse. I still hope that it was not the wrong decision. As it stands I make $37,000 a year and owe about $80,000. I'm sure by the time I pay it all off I will be well over the $100,000+ range, and it will be 10 years down the road. I can assure you that I will not be spending much until that debt is gone.
I have been out of school for two years now. My student loans were over $25,000 and because of the interest and the need to keep deferring payment while interest builds, it is STILL over $25,000. I am middle-aged and work full time but can't make these payments only for it to go nowhere.
I am a firm believer that if those Millions of American Dollars were given to the working class like most of us instead of the Big Corporate Brother, the economy would be doing very well right now and nobody would be in debt.
Yes - I want a BAILOUT on my Student Loans so I can EAT!
I don't think that having a bachelor degree with a couple of graduate courses and 55k of college loan debt is modest. I don't believe that 500.00 per month for just a college loan is manageable either. How are people supposed to live with this kind of debt and the current economic climate. How can people get a mortgage?
Hi Robert,
HULIQ just published a story mentioning this project
Yes, students do deserve a "bailout." Of course, to make the idea more palatable to convervatives and the GOP, we probably need to call it something else. I don't know what, but just make the loans dischargeable in bankruptcy court. It is ridiculous that they are not dischargeable. Let bankruptcy court look at each individual situation. Logically, it depends on each individual's personal circumstances. If someone is earning boo-koo bucks, has no dependents, etc., they can make their payments. Why not?
I used to want to be rich. Now I hate the rich. They are so ignorant!!!
I finally went through a bankruptcy last year, knowing it would not help my student loan situation. The attorneys and judge barely glanced and my student loan obligations. Sure, it is unsecured debt. Is a foreclosure secured debt when a property is only worth half of what is owed on it? People get to walk away from their debts, their homes, worthless GM vehicles every day in bankruptcy court, of course allowed to keep a new car or SUV, payments up to $500/month. I am driving a 1993 clunker.
Even small/medium-sized business owners are walking away from millions of dollars in obligations. Don't you think when the economy improves they'll start a new business anyway? They'll get to start completely fresh, no debt. Zero debt.
I was 32 when I had my daughter, a little college under my belt. When she was one year old, I realized I was going to have to do it alone. Believe me, I was terrified when I knew I was woefully unprepared career-wise. I was so ANGRY! No one ever told me I better be prepared to support a child, let alone MYSELF! Went back to college...finished a BA...owed less than $30,000...went to work...scarey, scarey, scarey little money!!! Never paid any of the loans for 3 years (I couldn't), finally decided on a Master's degree, thought it was the ONLY WAY. THERE WAS NO OTHER WAY!!!
We lived on student loans for another 4 years. Sometimes a program can take a little longer than you expect, you know? Once you start borrowing, you get on the train and DON'T GET OFF. You DO NOT get off until you finish. Otherwise, how do you get the good jobs to pay it all back? And you sure cannot work and go to school when there is a child at home and no one else to help care for her.
After starting my Master's in 2001, I planned out my schedule for the duration, totalled my probable debt at $80,000, and balled my eyes out for days. Whatever happened, I felt I was being a good example for my daughter, and I thought I'd make the payments, no matter what. I thought I would have an excellent career, and be able to put my daughter through college also, so she would not have to endure a lifetime of unbearable poverty and the daily, crushing financial terror we were living under.
Well, I finished a Master's Degree in 2006, borrowing the whole time at graduate level tuition rates. With interest and forebearances, late fees, whatever, my current debt is something like $280,000. I can not bear to look at the statements anymore.
I will be 49 years old in July. Every penny I earn goes to our basic living expenses. I have no assets except this new laptop, my 1993 Geo, and 2 low-end violins my daughter plays. That is about all I have ever given her, her gift of music. I rent a duplex with a nice backyard. I expect to live here a long time and probably die here. Saving for retirement? My own 401(K)? College for my daughter? THINK AGAIN.
I was laid off in April. A large life insurance policy may be the only good thing I ever do for my precious child (if I can pay the premiums). I hope I get cancer and die.
I agree with Erin, I did what I had to to finish school, but got laid off from two well paying jobs in my field. I mowed grass for school district and worked for my food stamps at the time, but where I live, good jobs are hard to find in accounting. Family crisis and personal sickness kept me near home and out of work some also. The point is I am not afraid to work when I can; My "other than student loan" debt is small, and should be paid by retirement, but my credit is in repair. My lender says I don't make enough to pay the minimum required and I am in "economic forebearance" w/interest soaring. My $12,000 loan is over $50,000 now and my offers to settle are not even considered because loan is backed by US. My son is in college now and thank goodness he got some scholarship help. I want to pay, but can't pay it all. Help!
One of the most unfair components of financing a college education is that your parents income is taken into account when you file a FAFSA application. Not all parents have the resources to put their children through college, and a student is essentially penialized if his or her parents have a combined modest income--which could already be financing any number of other things.
So, for those students that did not receive help from mom and dad, graduating with $20,000 worth of debt is a gross underestimate, and almost laughable.
STOP bailing out the bigwigs, the crooks and corrupt companies. Bail out people who actually do what it takes to pay their bills, bail out the people that will truely be able to turn this economy around-that is middle class working Americans with student loan debt! GRADUATES need a bailout! Most graduates do not have manageable student loans-geez just because its not trillions of dollars doesn't mean that it needs to be over looked. I am TIRED of CEOs that still and ride around in big fancy jets and get millions a year in bonuses getting a second chance, I am TIRED of the auto companies getting OUR tax money and then shutting down-What did that do to stimulate the economy? Nothing! Stimulating the economy will start when we can start spending money. If you want to help somebody, if you truely want to help Americans-stop giving money away to the crooks ang give it the middle class Americans!!
Yes, GRADUATES need a bailout! I take offense to the article's comments on "responsible borrowing". When I borrowed money for my education, I just knew I would be able to get a job that would allow me to repay my loan. We had a family discussion and mom told me how her payments were reasonable and it would take a long time to pay them off. I completely understood that I had a RESPONSIBILITY to repay what I borrowed.
My experience has not been any way similar to hers. The requested payments were absurd! When the government & their collection agencies decided that the loan could no longer be deferred,fees & fines were heaped on my total. I do NOT feel that I have a responsibility to pay for all their exorbitant fees and fines! I am gouged & I am hounded but NO ONE in those offices listens to what my salary & expenses are! It is now an insurmountable figure which can not be paid in the way the amount they want ($1000)a month.
Although my job is not in my field, it pays more than jobs in my field. It is the most frustrating experience in my life and I resent being told that I am not responsible! Thank goodness for this organization! I do not feel so alone in my fight.
I suppose they say it's modest because they deal in millions every day.
When you can see the big picture, I'm sure the tens and hundreds of thousands of dollars in student loans that the people I know look like pennies.
Plus it doesn't hurt that the people making headlines are also banking four times my student loans as an annual salary.
I think that if we can bail out the bigwigs we should be at the top of the line to give students a bail out because all the students tried to do was make their lives better to give their familys a better life and all they are getting for it is debt so i will vote for this untill it happens thank you to whoever started this idea because we need more people like you to fight for what is right
