Posted on 04/01/2009 9:40:35 AM PDT by Arguendo
I’m about to talk about two little words that make most people cringe. The mere mention of these words usually incites the same reaction in everyone: a) fear b) denial c) a throbbing headache and d) the desire to run away screaming and crying and begging to go to a “happy place.” Yes, I am talking about STUDENT LOANS. If you don’t have one, you know someone who does and you sympathize with them. In the midst of the credit crisis, home foreclosures and bailout turmoil, the amount of debt that graduates are facing is overwhelming.
I am 23-years-old, two years out of college and I am sitting on $115,000 of student debt. And based on my lender’s loan terms, I only have roughly 12 years to pay it off. How much does that make my monthly payment, you ask? A whopping $1,200 a month. And let’s just say my lifelong dream career in television doesn’t lend itself to that. The only option my bank is giving me is to go on “graduated repayment plan.” That means that for four years I will only be paying off the interest every month. How much is that? Well, $115,000 with interest rates between 4-8%… that’s about $600 a month and that doesn’t even touch the principal amount. People don’t pay off houses in 12 years and I am expected to pay off this student loan in an entry level position?
Some might say, “Sam, you shouldn’t have gone to a private school in New York City if you wouldn’t be able to pay it off.” Well, I made a lot of mistakes when signing up for my loans, but I was uneducated on the process and on the repayment and now I’m stuck.
(Excerpt) Read more at ac360.blogs.cnn.com ...
There’s a reason the student loans cannot be extinguished in bankruptcy. You see, a whole lot of students decided that the first move after graduation was to make a beeline to the bankruptcy court to get debt forgiveness. After all, their debt-to-current income ratio qualified. So you have lawyers, doctors, and others who had a pretty secure future income stream expectation nevertheless qualifying technically in bankruptcy to shaft the taxpayers for their professional education and start their professional lives debt-free. Unfortunately a lot of laws which we deem unfair came about because of abuses by others.
‘poor little mind’ he has ...
the younger people among us want to start off where their parents are after 25-30 years
false values ... not workable
to create a student life environment which inculcates responsibility in carry out obligations.
Disagree with that assessment — see my last post.
All debts should be forgiven in bankruptcy. IRS, Bank, personal, EVERYTHING.
But really, when a college graduate is in their 20s and they want to get rid of their student loans, they should grow a pair and join the fracking military.
That is a huge option and since it exists, all this talk about these poor students is pure horse poop and my butt just bleeds for them. NOT!
An Obama voter no doubt. How’s the hopey-changey thing treating you now? Just wait a couple of years, unemployment will be way over 10% you’ll be standing in line at the soup kitchen and student loans won’t look like such a problem. All those college kids who voted for Zero graduating with slim pickens for employment; thank God I graduated 4 years after Ronald Reagan was elected.
Stridently disagree! — The main thing young adults are learning is college is irresponsibility. Why? Because the schools and lenders are irresponsible. See my post prior in thread.
I don’t believe there is ANY degree worth going $100k into debt for.
They — the collectors — used to include me.
They — the collectors — used to include me.
That’s not really practical. How exactly can lenders judge whether an 18-year-old applying to college has integrity (that will last 20 years and dissuade him from filing for bankruptcy without a really good reason at any point in the future)?
And besides, student loans can be discharged in extreme circumstances, such as if you become disabled and are no longer able to use the degree you borrowed to finance.
Good idea, but not an option for everybody.
Yes.
Most def! The government loan programs and the exemption from bankruptcy indemnifies schools and lenders from irresponsibility. Consequently the schools produce bad product.
I disagree - a diploma can’t be taken back - if you borrow the money to pay for the education, you owe that money until it is paid. Unlike a car or a house, which can be repossessed if you fail to pay, a diploma enables you to find employment.
You don’t believe a medical degree is worth 100 grand? Hmmm...who knew my little 100,000 dollar house was worth far more than any doctor. Maybe they will trade with me? Well, here’s to hoping that my house suddenly starts earning me 180 grand plus a year.
A good JD will get you a job paying $160k plus bonus, so while $100k sounds like a lot of debt it’s not really a huge burden, especially if you budget well after graduation.
Sure it’s practical, I trust human ingenuity to make it practical.
Your explanation was longer than mine and better - I agree completely.
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