Skip to comments.Recent Grads Struggling to Pay Student Loans (Over 2/3 graduate with debt)
Posted on 10/26/2011 8:29:47 AM PDT by SeekAndFind
Two-thirds of all college students now graduate with debt, and owe an average of $24,000, as student loans are quickly becoming the only way many Americans can afford a college education.
As a result, thousands of young people -- who are also facing high unemployment -- are forced to tackle mountains of debt immediately after graduating, and many are uncertain about their futures.
Shannon Johnson, who has been a lawyer at a small, family-owned firm in North Dakota for two years, said she owes more than $150,000 from her undergraduate degree and law school.
"Because of my choice to attend college and law school, I live every day paycheck to paycheck and am forced to rely on credit cards to get by," she said. "I don't feel like I will ever be able to get to a better place, buy a home or start a family."
Others are wondering if going to college was worth the cost.
"I cannot find a well paying job," said Robin Snyder of Perkasie, Pa. "I equate it to the housing market crash -- I now owe more on my education than it's worth."
The total U.S. student loan debt is quickly approaching the $1 trillion mark, and last year it surpassed credit cards as the highest debt that Americans carry. That is in part because the cost of education has skyrocketed in the past 30 years, up 900 percent since 1978.
Shockingly, one of the biggest jumps in college costs came in the last decade. According to CollegeBoard, tuition and fees at four-year public colleges and universities increased 5.6 percent each year beyond the rate of general inflation.
(Excerpt) Read more at abcnews.go.com ...
An intended consequence of this is that non-Eric Holder's people bury themselves in student loans that are now owned by the federal government.
Get this: student loans are the ONLY debt you cannot escape through personal bankruptcy.
This means that the vast majority of kids graduating from college these days are indentured slaves to the federal government.
If you don't think Washington has plans to exploit this situation, you must be from some other planet.
ABC’s timing is SO OBVIOUSLY at White House bequest. I’d call them Stooges, but that would be a gross insult to the memory of Larry, Moe and Curly.
Welcome to the newest victim group. And Obama has already started to pander.
i graduated college with a ton of debt too. i worked a regular low paying job, made payments with my little payment ticket book, and then eventually, I joined the army.
they paid for the rest of my loans, and i served and was honorably discharged.
The Massiah has already started to buy votes.
Like, who would hire an attorney who was stupid enough to have ammassed $150K in student loan debt, to work in the family business?
And who hasn’t yet realized that paying off $15K a year will mean a lot of beans and rice?
Oh wait, then there are the credit cards she is now living on ....
There are so many problems with student loan programs. The reality is the gov’t should never be involved with them. A (former) friend got through school on loans all the way through a masters degree in psychology & discovered she couldn’t get a job that she was willing to take. (Her internships had been in drug-related therapy & she didn’t want a job in that field.) She discovered that there was a 9-month grace period before she had to start paying back the loans, but if she enrolled in another class it put that grace period back another 9 months. So she regularly took an art class & hadn’t begun to pay off her loans 10 years after finishing her degree. We haven’t been in touch in some time, but I imagine she has continued to utilize that loophole.
before tenure was granted to protect communists from public scrutiny,
profs didn’t make more than the average company employee.
then came the boomer generation that expanded the universities into questionable activities
and padded salaries.
meanwhile, profs do not work as many hours as they did before tenure.
in sum, less work, more pay. and big universities with many non-essential employees.
What passes for a college education today is ridiculously overpriced, largely because the government will hand out money to anyone gullible enough to turn it over to a post-secondary school. The schools get more highly paid (and under-worked) staff and sparkling new facilities, while the kids get loans they will pay til eternity. The best solution to this self-inflicted problem is to cut off the money spigot ASAP.
While all of your points are valid, the bottom line is that any Obama program to forgive student loan debt has the potential to buy him a whole heck of a lot of votes from young skulls full of mush. It’s why taking direct Federal control of this program was a top priority for the Dems early on.
Well, it’s the result of a lot of things - outrageous costs from maintaining a sleek and glossy herd of tenured professors who rarely teach a class, for example, and the proliferation of majors that seem almost designed not to prepare people for any useful work.
My governor here (Rick Scott) touched off a firestorm with the simple remark, “äfter all, how many anthropology majors do we need?” People feel it is their right to major in basketweaving and then expect the salary of a CEO.
Reducing the overall cost of school through something like Perry’s $10,000 BA plan (which relies heavily on distance learning and flexible class schedules to permit students to work) would also help.
But the fact is that the students all take on these loans voluntarily. Some people take none, and people who take less in loans actually can pay off their loans reasonably quickly once they start working. As for people who get huge loans for medical school or lawschool, these professions usually do pay well enough to permit repayment of the loan.
Another big problem is that the money is too easy to get, and now that the loans are underwritten by the Federal government, there is no incentive for the banks to be more cautious.
Being one of the non EH people, I found out a long time back when I went the local community college FA department to see what I could get and help with the paperwork, I was essentially ignored and given runarounds while EH’s people no matter what were most welcome.
I’m very confused about why I’m supposed to care about this....
Quite the contrary.
What I meant to imply was that student loans should be illegal.
That would do more to bring higher-education costs down than anything.
College costs have gone up 900% since I was in college in 1978.
The ONLY reason they exploded like that was because 18-year olds who didn't know any better were enticed into burying themselves in debt for their educations.
I paid as I went. Never had dime of education debt, and I have three degrees. Worked the entire time.
I think Buckeye McFrog nailed it in post#17.
Meanwhile, college endowments are rising too...
Harvard: $27.5 billion
Yale: $16.6 billion
Princeton: $14.4 billion
Univ. of Texas system: $14 billion
Stanford: $13.8 billion
MIT: $13.3 billion
Univ. of Michigan: $6.6 billion
Columbia: $6.5 billion
Northwestern: $6.8 billion
Texas A&M: $5.7 billion
Univ. of Penn: $5.7 billion
Univ. of Chicago: $5.6 billion
Univ. of Calif. system: $5.4 billion
All tax free.
Information a friend emailed me. The only information verified is the Stafford Loan program. Seems OWS still doesn’t know where to direct their frustration.
“what is it about Student Loans that have individuals upset at Wall Street?
After all the greatest lender since 1965 has been... .gov through Stafford Loans - etc. In fact there were so many individuals discharging Student Loans through bankruptcy that .gov passed ruling that these are one of the only types of loans that cannot be “forgiven”.
Since 1965 the average per year cost of higher education has risen 6.7%. Before .gov stepped in, the cost was 1.3% per year tied closely to the inflation rate. In effect .gov is driving the additional cost increases by indicating that “everyone” should attend college, providing the “free” money for them to do so, and mandating entry requirements to College via various diversity programs.
Doesn’t that mean that students should be marching on their own Universities and 1600 Pennsylvania Avenue?”
RE: All tax free.
Makes me wonder how many percent of those tax free endownment are used to help students pay their tuition.
I see this as a money laundering scam.
1. Student pays exorbitant tuition fees to attend college.
2. College professors receive increasingly higher salaries and benefits.
3. Student loans are forgiven by government.
4. College professors very active in donating to election campaigns .
5. Taxpayers pick up the tab for higher education of an increasing number of fanciful liberal arts majors.
Obama Media Group.
Nothing to see here.
RE: Im very confused about why Im supposed to care about this....
If you’re a tax payer, then you’ll be paying for this.
MIT: $8.3 billion
Northwestern: $5.9 billion
Once again there is an expectation that someone is supposed to ride in and rescue people from the consequences of their choices. This article is silent about which colleges the young lady with $150,000 of debt attended. Were they the best value? Also, did her family not help at all? What kind of housing choices did she make? Did she work part time? Did she work summers? Why are taxpayers supposed to bail her out now?
And don’t even get me started on the way that colleges have ratcheted up their tuition rates above inflation whenever financial aid from the government increased. Talk about a conspiracy worthy of the Occupy movement. Why isn’t there an Occupy Education or Occupy University movement? They are the ones trying to make this generation a bunch of debt slaves.
The IRS needs to go after these rich, bloated universities and make them pay their fair share!
The very intelligent young man who services my heat pump has a bachelor’s degree in sociology. Then he learned a useful trade and started his own business. He just bought a new truck and hired an assistant.
Except for certain professions, the American system of higher education is a black hole, lined with debt and indoctrination.
1.) Government offers loans with no preconditions or limits
2.) Government outlaws private student loans.
LOOP UNTIL CRISIS OCCURS AND RIDICULOUSLY LARGE LOANS ARE MANDATED TO ATTEND COLLEGE.
a.) Students take huge loans and give to liberal colleges
b.) Colleges hire more liberal employees and expand facilities
c.) Colleges raise tuition
d.) Students never pay off loans and blame conservatives
e.) Liberals pander to skulls of mush offering to fix problem they created, loan forgiveness, etc.
3.) Students vote for liberals to forgive loans.
4.) Colleges subsidized by government so professor salaries do not drop
I see we think alike...
You can still graduate cheap. Go to a community college for the first two years and work a job. Then transfer to a 4-year school.
I also know some kids that went to community college while living with parents or family AND have a job. It ends up being TENS OF THOUSANDS of dollars in savings even if you pay rent to your folks.
And the really terrible news is that a vast percentage of those exorbitantly expensive "degrees" are in subjects that are worthless as training for working in a productive, capitalist society...
Of course, that is not news; we "hard scientists" who struggled with time-devouring lab sciences and rigorous math courses have long been disdainful of folks who coast through majors in "social basket weaving" subjects.
Many "women's studies", etc. majors fit their victims only for leftist government jobs -- or worse, the incestuous ("never held a real, productive job in their entire life") positions that increasingly infest academia.
No wonder the Far Easterners are kicking our economic butts!!!
The degree major has nothing to do with it. We are talking about how much the tuition has increased astronomically over the past 10 years. Much, much faster than the rate of inflation.
Also “entry level” doesnt exist anymore. Go open up a newspaper and try to find an entry level job that doesnt require multiple years of experience. Companies don’t want to train employees anymore.
RE: Were they the best value?
We had a whole thread at FR showing the Top Value Colleges in the Country.
PROBLEM IS, Most people don’t even consider many of these colleges.
They’d rather pay above $50,000/year for the glamour of going to NYU or Columbia or (name your own expensive preppie college here ).
My own experiences in teaching math in today's public schools, and a lot of anecdotal evidence says that kids today have especially poor basic match skills, especially of the sort needed to understand the cost of long term debt. This is despite SAT math scores rising since the late 1970s. How can it be that my experience bests the SAT score tracking? SAT math tests have been dumbed down! And why is that? The protection of the higher education industry.
Moreover teaching of the basic accounting and finance concepts needed to understand borrowing as an investment is exceedingly rare.
College costs have gone up at a rate beyond all other common lifetime expenses. The rate of unemployment for the recent college grads has gone up, also at an rate beyond that experienced by most alive. This means that the parent's and grandparent's sense of the value of an education, balanced with the long-term burden of loans for college, is not founded in experience, is at variance with that experience.
Student life has become a intense mix of ammorality, immorality and chaos, to which the each student will respond differently, but only a few without significant damage. Damage to the spirit, to the intellect and to to body.
Anarchy, Ignorance, and STDs.
Depression, brain-washing and arrogant rudeness.
Making exactly the kind of persona least likely to be able to pay back long-term debt either by inclination or ability and hampered by the kind of life-cycle accidents and bad choices the moral chaos in which the modern college soaks and drowns nearly all students.
Where do the big money come from? From big dadday government! Who gives a frig about Alumni anymore. Interest by the higher ed establishment in their alumni is diminishing quickly.
You can say, “Too bad, it was their choice,” and you’d be right. But remember, these are 17-year-old kids with no life experience being asked to make the choice. All their lives, they’re told, “You have to go to college. You have to choose the right courses to get into college. You have to take an SAT prep course so you can do really well on your SAT and get into a good college.” All their lives, from the time they’re very young, that’s all kids hear—from parents, counselors, teachers. No one ever says, “You could be a plumber and not have to go to college. You could fix cars. You could be a production splicer for the phone company. You could start a landscaping company,” or any of the other things people do to make a decent living without a degree. These aren’t presented as desirable alternatives for the average middle-class kid, and indeed, they’re not: given a choice between working in a nice clean office doing something you’re good at and snaking out other people’s toilets, most young folks would not choose to be a plumber.
So don’t be too hard on them. When you hear nothing else your whole life except “Go to college,” it’s unsurprising if you do decide to go to college. Especially if you’re just 17 or 18 when you make that choice. And when even a state university costs so much that you can’t work your way through, as I did, it’s not surprising that the inexperienced kid signs up for loans. The colleges make it very hard not to get financial aid.
typo fix: “The kids can NOT do the basic financial math needed to understand long term debt, return on investment, and cash flow analysis.”
“student loans are quickly becoming the only way many Americans can afford a college education.”
No. Wrong. Bad reporting. Not objective. An outright lie.
Here in California, you can do your two years general ed for hundreds of dollars — not thousands — at any of dozens of community colleges.
Anyone can hold down a job and pay those fees as they go.
Then you transfer to the Cal State system or the UC system for your final two years. Ten grand a year for books and tuition.
And since one in eight Americans is a Californian, I’m on much firmer ground in asserting that THIS is how most Americans are affording college, you hacky ABC reporter.
This agenda-driven article is just trying to build the case that I’m somehow obligated to pay for someone else to go to the Ivy League school I couldn’t afford.
Public education is fantastic in California, but apparently it’s just not good enough for the entitled darlings who want East Coast validation, even if means borrowing a hundred grand. Then they can smug it up toward suckers like me who went to state colleges — and have no debt.
“Because of my choice to attend college and law school, I live every day paycheck to paycheck and am forced to rely on credit cards to get by,”
Yup. It was YOUR CHOICE to go to law school right after college, instead of working for a few years to earn the tuition. I paid cash for my first 2 years after working for 4 years after college, took out commercial loans for the last year, and paid it off before my 4th anniversary of passing the bar. And that was a private law school. And I ain’t nobody special.
I worked and paid my way through a BS in accounting then went to work for a private university that allowed me to get my Master’s through them for free. Took me 9 years to get it all but in that time period alot of the people I went to school with should not have even been there, let alone on student loans.
Exactly. Even time in the Guard and Reserves will build up Post-9/11 GI Bill benefits. Well done, and thanks for your service.
gubmint subsidized education has the same outcome as gubmint subsidized health care.
what a shocker.
and the “solution” is always more gubmint intervention.
Our daughter went to a lot of trouble getting every scholarship she could apply for and graduated with little debt. Her grandparents had set up the Texas Tomorrow Fund for her when she was in middle school, which locked her tuition at the rates for that time.