The $555,000 Student-Loan Burden

Quote from stevegee58:

My wife and I already decided and made it clear up front to our kids that:

1) We would not be co-signing loans for college, cars, houses, etc.
2) We would not endanger our future financial security by borrowing from our IRAs or 401Ks for college.
3) The net tuition after scholarships has to be less than or equal to in-state college tuition.
4) The kids will take out Stafford loans every year they're in college.

We may sound like a couple of hard-asses, but we're making sure that no one gets in over their head in debt. The Stafford loans ensure that the kids have some skin in the game, yet the financial burden isn't that great when they start working.

College is not an entitlement. If their grades are sub-par, they get yanked home to attend community college.
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20-30 years ago this would have been considered a perfectly reasonable position, and it is clearly the one of a parent who cares about his child's future happiness and financial security. The value of today's society are so off kilter that your approach is seen as radical and somehow abusive to your children. I say Bravo to you and your wife Steve, and I dare say that your children will too when they wake up at 30 and 40 years of age and have no student debt while all their friends are still paying tens of thousands in interest.

http://studentloanjustice.org/
 
Quote from Mvic:

20-30 years ago this would have been considered a perfectly reasonable position, and it is clearly the one of a parent who cares about his child's future happiness and financial security. The value of today's society are so off kilter that your approach is seen as radical and somehow abusive to your children. I say Bravo to you and your wife Steve, and I dare say that your children will too when they wake up at 30 and 40 years of age and have no student debt while all their friends are still paying tens of thousands in interest.

http://studentloanjustice.org/
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I agree. My Mom paid for me to go to jc for 3 years part time and finish off at a 4 year. The core classes are the same at either. In fact I received better instruction at jc. The UC system focuses on publishing book and papers while Cal state focuses more so on teaching students.
 
What really sucks is even if she is making 150k a good chunk is going to taxes, so she really doesn't have as much money as she should have to pay off the debt.
 
easy loans have raised the cost of college educations. if loans were not available colleges would be forced to lower tuition. student who do not take loans are subsidizing student who do take loans by paying higher tuition as a result of increased demand for higher education.
 
This is exactly the reason why the cost of a college education has accelerated so quickly. When I started in college I paid in cash and the University would let me roll 25% of the tuition forward to the next semester but they wouldn't issue my degree until my balance was paid in full. I didn't take out a single student loan. I borrowed from my parents, aunts and uncles, and I worked my ass off doing construction during the summer. Debt is completely fucking up this country. There is no end to the number of people who are so overloaded with debt. And that damn credit score. Don't get me started with that fucked up POS number. You can't even get a freaking job if you don't have a 700+ credit score. It's a pathetic society where credit drives prices so high that you need more credit to reach them and when you can't pay you can't get a job to pay your bills because your credit score dipped below 700 and now employers are giving you the middle finger.

It's pretty easy to sit back and say that people should be more responsible and shouldn't get into debt in the first place but few people realize that most people get into debt because they <b>have</b> to, not because they <b>want</b> to.

Quote from zdreg:

easy loans have raised the cost of college educations. if loans were not available colleges would be forced to lower tuition. student who do not take loans are subsidizing student who do take loans by paying higher tuition as a result of increased demand for higher education.
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Unfortunately, this was part of the new bankruptcy laws that went into effect in 2005. The banks saw this coming and lobbied Congress to make student loan debt excludable from bankruptcy filings. Although, if you see problems repaying your student loans early enough is there a way to get them included in a bankruptcy petition? Is there a way to convert (transfer) your student loans to some form of debt that does qualify for BK? A little word of wisdom to those who have caught my drift....you have to make good faith payments on the new form of debt for a period of time, not less than 24 months. Otherwise, your efforts will be called into question and your plan could easily backfire. Don't tell anyone I told you :D

Quote from forsalenyc:

Bankruptcy protection is screwed. It should include the Student Loans or it shouldn't include Foreclosing. either way it's screwed.
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debt is fucking up the who world, except china and the EM's. All the braindead idiots in washington and the fed think is more debt/credit is the answer.

eventually its all going to blow up
 
Quote from forsalenyc:

Bankruptcy protection is screwed. It should include the Student Loans or it shouldn't include Foreclosing. either way it's screwed.
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It shouldn't include student loans. Say i take out a total of 200K in debt for UG and Law school. I will make approx 160k if i got to a good law school and do well.

I could file for bankruptcy after graduation, and since I have almost no assets the loaning companies would be screwed.
 
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