What is Digg?109 Comments
- resta6, on 01/12/2009, -1/+21I sure hope you picked a real major or you are in for a surprise. Colleges will always tell you, you will make bank, but they fail to mention thats only true for the top 5% of students. The rest get screwed
- wannabenomad, on 10/11/2007, -0/+18Good luck getting more than an Associates degree at a community college. Even public universities are becoming prohibitively expensive. Check out Penn State.
I was lucky enough to get through school with only minimal loans (I'm not ashamed to admit that I have my parents to thank for that) but I have many friends whos loan payments are bigger than their mortgages.
It is so ironic that we go to college to expand our horizons and follow dreams, and graduate with such debt that we end up crippling those very dreams. - derjames, on 10/11/2007, -3/+15continue spending millions on war... instead of giving those resources to education or to fulfil any other relevant issue...
- Guitarsenal, on 10/11/2007, -1/+12The reserves are hell of a deal except for the fact that we are already in two wars and are about to start a third, so being in the reserves is now sure to get you at least one tour.
But on the upside, if you get killed for no reason in the desert you are totally off the hook to pay back any student loans! - smartmlp, on 10/11/2007, -0/+11Where did you go? ITT Tech? I thought everyone knew that school was just a expensive baby sitter?
Im currently going to local college and all my credits transfer to any UC/CSU school and I'm paying $60 a unit - jdelsman, on 10/11/2007, -0/+10Millions? Try billions (soon to be trillions)
- masgrada, on 10/11/2007, -0/+9@dested
I think you're missing the point. The opportunity for smart kids getting a free ride isn't happening anymore. Now most people have to take out loans even if they did good. - pintomp3, on 10/11/2007, -0/+9part of the problem is that these loan companies were bribing people in the financial aid departments in schools to sway students to those companies. doing all the paper work, getting financial aid and loans, picking your classes, getting your books; it's a daunting experience for incoming students. they tend to take the advice of these corrupt administrators.
- inactive, on 10/11/2007, -1/+10Put all your student loans on credit card, after you graduate or if you graduate, file chap 7.
"Trickle Up" efftect! - bolerobell, on 10/11/2007, -0/+8The whole point is that young kids don't know to do research, and because these is a decently new phenomena, parents don't necessarily know to advise their kids to the financial dangers, thus the article.
- Kniggit, on 10/11/2007, -0/+8@bolerobell:
You hit the nail on the head. These vultures, along with the credit card companies, dupe LOTS of young people into terms without understanding their rights, the alternatives or the consequences.
One of the big solutions would be to start a nation-wide movement to have a student support group putting flyers everywhere (including in student registration materials) warning students of the consequences and giving some statistics on what happens when you loan people something. It's ironic that, in a higher-education environment, that so many ignorant people continue to be taken advantage of.
In the case of that American Intercontinental University in the article pushing the student for the loan, I would be contacting the Florida Attorney General to investigate a possible conflict of interest between the university and its lending institutions. One thing that should be legislated, if nothing else, is to send university officials to prison if they are in any way involved in pushing debt on a student or of colluding with a lending institution in any way (including "casual" promotional materials). The other would be to ensure that all payment terms, including the maximum possible interest rate in a period, were in big print just before the signature line. - bolerobell, on 10/11/2007, -0/+6Public School, Private School.... doesn't matter. I racked up 24K of Private Loan debt at a Public School.
Student Loans are the new "Company Store". It's a just a measure of control over employees. - endustry, on 10/11/2007, -0/+6The only problem is that three years in the reserves now basically equals five years in Iraq. Talk about inflation.
- redxii, on 10/11/2007, -2/+8Yeah, get sent on a tour in Iraq and have your brain splattered everywhere. Oh look, there's a piece of brain goo with what I learned in college! All for Bush's energy stocks.
- N3M3515, on 10/11/2007, -0/+6Heres what I have learned throughout the education process;
1.) Goto a junior college, in MN it is far less cost wise than a major university. It cost me about 5k per sem at the U of M and about 1,500 per sem at the junior college.
a.) if you do take this route know what your major is going to be, and which school you are going to attend. Once you know those two things goto
the school you are eventually going to goto, and make sure you take only classes at the junior college that will transfer and count towards
your major. This is a pain in the ass but it will ensure that your on the right track not wasting time / money, also I would suggest doing this at
least once per year.
2.) Do NOT goto some small backwater school, these schools SELL education and they will push you through and not support you in finding a job. You will find your self with a 30k loan for an Associate (2yr) degree that isn't worth the paper its written on, with no job and with no leads. This will also be apparent only after you finish, as you will find out that you cannot transfer your credits to a public school, and thats about the time the school will try to sell you on your bachelors degree from them of course...
3.) Figure out how much the career your planning on entering is going to pay before you goto school. Do some research before entering school and you may find out your wasting your time with a job that isn't going to pay you *****. I personally know some one that spent 35k on a Graphic Design degree from a private school only to start at $9.25 an hour. In my opinion hardly worth the money.
4.) Get an internship while in school, this may not always be a possibility and in some cases you may have to take a pay cut, but once finished with school you will be a HUGE step above any other students that have not had the internship. - ohhoe, on 10/11/2007, -2/+7I took out 30 something thousand in loans, which has already reached 40k in interest total, and by time I'm done paying it off it'll be close to 100 grand.
for an ASSOCIATES.
Worst part, my credits don't transfer anywhere, and now I get to start all over. - masgrada, on 10/11/2007, -0/+5Thems why I went into science. Ever try to read scientific journals? Sure weren't written by engrish majors.
- lifeat24fps, on 10/11/2007, -0/+5Research is key, yea, but come on, I signed for my student loans when I was 17 years old and a senior in high school. You're not (should be, but, you don't) thinking about interest rates and payments. You just want to go to school.
- vroom101, on 10/11/2007, -1/+6Article on one page:
http://www.nytimes.com/2007/06/10/us/10loans.html?ei=5124&en=5c55ddde1f93c2ed&ex=1339128000&partner=digg&exprod=digg&pagewanted=print - jinu123nyc, on 10/11/2007, -0/+4I took EVERYTHING out in loans because my parents couldn't afford college. I now have racked up more than 110K in loans from Sallie Mae & the federal aid.
Goodbye paychecks for the next 5 years if I'm lucky. - lisaawesome, on 10/11/2007, -0/+4What really irks me is that my parents who don't help me financially make too much money according to FAFSA guidelines. I feel like I've gotten screwed out of a lot of what federal aid there is available because of that. Your aid will not be reconsidered based on lack of parental assistance so I work full time, attend school full time, and am still 18000 in the hole for school so far.
- scoot87, on 10/11/2007, -0/+4@fatejudger
I like your comment and it makes a lot of sense. College students can be vulnerable since its their first time away from home for most of them. It's a sad situation. - rhabd0mancer, on 10/11/2007, -0/+4Sallie Mae will go after your estate if you get killed in Iraq.
There is no escape. - JasonCox, on 10/11/2007, -0/+4Raise your hand if you...
Wait a minute, make that raise your hand if you *havent* got f***ed by your student loans, it'll be less people to count. - jbonds, on 10/11/2007, -0/+3I went to a junior college. It was $11.50 a unit when I left with a GPA of 3.9 and I was prepping for earning a degree in Computer Science/Electrical Engineering so the coursework was tough. I paid for it entirely with the 30 hr/week job I maintained throughout college.
I didn't get accepted into any of the public schools I applied for (I think I put on my transfer applications that I was Caucasian) and had to settle for attending a private school where the rates were between $800 - $950 per unit while I was attending. I ended up with about $100,000 all in private loans because according to the Federal Government, my parents made too much money (~$90K per year combined income) even though I proved by their own criteria that I was independent and was receiving no aid from them. I was advised by many that I should go to school no matter what the cost but I didn't know what I was getting myself into. By the time I graduated, my loans had appreciated to about $115K. I got a job that paid about $60K/year but after expenses including around $1000/month in rent (Los Angeles) and a $300/month car payment, I couldn't pay the $1000/month student debt payment to Sallie Mae and continue eating. After running some numbers, I came to the conclusion that unless I did something drastic, I wouldn't be able to proceed with my life unless I worked my tail off for 15 years. In other words, I wouldn’t even be able to get a loan to buy a house and start building equity until I was 40. I felt like I was enslaved and I started getting very depressed by my seemingly insurmountable debt. Oh by the way, my loans didn't cover everything while I was in school. I had racked up about $10K in credit card debt buying books and taking care of the inevitable exceptions that occur in life.
I didn’t pay my debt and got on forbearance as long as I could. I shredded my credit cards and tightened my belt. I took risks and made many mistakes. My credit started to get poked full of holes. I got more depressed… I sucked it up and took even more risks telling myself that I would rather die than let Sallie Mae rob me of my best years. It took 4 years of living in a depressed state, sleeping on floors, and coding like a maniac but I finally found a niche and am doing much better than I thought I would ever be. I recognize that I got EXTREMELY lucky. I know there are many others including my friends who are not as lucky and will wake up one day and realize that their lives are gone.
I’m very happy to see this topic has been raised and the political body is looking into it. I hope they don’t forget all those who have already been affected by this. I understand completely Sallie Mae’s perspective when they say that without it, many wouldn’t be able to attend school in the first place. My opinion is that education should be free to all those who want to pursue it. I wish as a society that we respected teachers more and rewarded them better as a whole. I don’t know how much longer we can continue to operate like this before something explodes. - LXV42, on 10/11/2007, -0/+3It baffles me.
In high school I had to take home ec and shop. Consequently I can bake a pie, sew an apron, build a birdhouse, and even twist wrought iron. With th exception of pie baking, I have NEVER used any of the skills that took up an entire year to learn.
Why the f*ck do highschools not teach money management? Why do we have to learn something of this importance through trial and (mostly) error. Yeah the paperwork is complicated but under the guise that high school is supposed to get you ready for 'real life' shouldn't we be teaching people how to balance a checkbook, fill out a 1040, and apply for mortgages and loans, and what Federal loans can and can't be used for in college. It wouldn't be nearly as much fun as sewing an apron, but it would be infinately more useful. Hell, why don't they teach it as part of freshman orientation?
And just to put a face on what this student debt problem could lead to: I have two friends from college who graduated and married. Once their loans were looked at in total, they started life more than 80,000 dollars in the hole. Consequently rather than enrolling in Officer Candidate School (he was joining the army, no matter what) he signed up as enlisted for the additional $10,000 student loan bonus. He's served two tours in Afghanistan and may end up in Iraq soon, all as a grunt. - Skooma714, on 10/11/2007, -0/+3Woo-hoo The future is bright. Hope for all!
I had to sit through an AP orientation earlier this year. This one teacher kept saying "there is money out there for you", I argued with the fool saying that no will just give you money and that there is no hope for almost everyone here. I was silenced, the show must go on.
Nobody gets anything worth their while in scholarships save ball players. As a result the poor go tumbling down, tumbling down into debt. Meanwhile the elite laugh their way to the bank. - TacoSnatch, on 10/11/2007, -0/+3"Even public universities are becoming prohibitively expensive. Check out Penn State."
Penn State isn't a public or state college, its "state-related" - nebrfan, on 10/11/2007, -0/+3I'm currently at a public medical school and it's over 35k / year -- The private medical school across town is over *50,000* a year ! And people wonder why there is a shortage of primary care docs ....
- smartmlp, on 10/11/2007, -0/+3@wannabenomad
Although its true you cant get more then a 2 year degree at a community college, if you go to the right ones they will transfer to public 4 year universities and that allows you to get a 4 year degree at half the cost. - fatejudger, on 10/11/2007, -3/+5Actually, most the benefits that these companies receive are through government favors such as the newly redefined bankruptcy laws which prevent private student loans from being written off. If the industry exhibits any sort of monopolistic behaviors, it's simply because the government has granted them.
However, not all of the blame lies with these companies who are simply offering--not forcing the purchase of--a service. Students here are clearly uninterested or too incompetent to do their own research and instead seem to trust anyone who goes out of their way to send them a colorful brochure. This is hardly a crisis, but an all-too-common scenario of naive students using their hearts instead of their heads. - wannabenomad, on 10/11/2007, -0/+2Depending on where you live (that IS a consideration for people of lesser means) public universities can be pretty expensive too. Not in the $40k/year range like some private institutions, but enough to rack up some substantial loans.
- Mardala, on 10/11/2007, -2/+4@Scoot87 --- one word: "De-regulation"
- thirdoffive, on 10/11/2007, -0/+2Just out of curiosity, could you explain more? From who? From where?
- billizm, on 10/11/2007, -0/+2Actually, its billions.
- atheinostic, on 10/11/2007, -0/+2I'd love to do some "homework" on where to get private non-sucky student loans from, but I don't know where to look. Can anybody here give me some advice? I've asked my financial aid counselors, but they were pretty much useless.
- kd1s, on 10/11/2007, -0/+2Holy *****! my B.S. from JWU only cost me $23K total, that's with all the interest. Of course Nelnet is taking its drubbings since they've played pretty dirty with the schools.
Of course the dirty little secret about JWU is that continuing educations students like myself are subsidized by day students. Got to love how that works. - jimwyso, on 10/11/2007, -0/+2No child left a dime
- inactive, on 10/11/2007, -1/+3Credit is just so evil isn't it? Regulation will help. Look what the Federal Reserve did for the 1920s and 30s. Now that they've totally distorted the mortgage market, and have almost totally done the same to the student loan market, why not let it get the last little bit?
- shibainu, on 10/10/2007, -0/+1what is life if you cant have what you want and are limited to what you can achieve? its the haves vs the have-nots. if you were lucky enough to be born into a wealthy family whose parents paid for your college education you wouldnt even care about this discussion. haha too bad for you, let me enjoy my caviar.
- misterdiggles, on 10/11/2007, -0/+1SAME EXACT situation. My parent's looked great on paper but in real life they didn't have much. Someone in a financial aid office actually told my Father to sell his car! I sort of wish he had, seeing that I've been jerked around by Salle Mae since I graduated. He would have had to have a Maybach or a Ferrari to pay for it though. I have a great job and have gone well beyond the people I graduated with. However, they had rich parents. They have no student loans. They own houses with decks with grills and dogs in their yards. Eventually I may catch up, but it will be a while.
- ceruunos, on 10/11/2007, -0/+1I agree, There needs to be some kind of polarizing change with regard to student loans and some organization to focus those affected. As the people that are getting crushed by these loans age, they need to become shrewd with their vote. I'm paying very close attention to the candidates stand on this issue as we get closer to the election. Corruption in education finance needs to end. If I have my way, my children will never borrow money without reading every word of the contract and understanding what it says completely.
- misterdiggles, on 10/11/2007, -0/+1
I personally also am In this situation. I think Andrew Cuomo is doing a good job here as well as the other people mentioned. I just sent a letter to Andrew Cuomo to thank him for his efforts. The site I used is: http://www.oag.state.ny.us/home.html He may not be from your state but that doesn't matter. I don't agree with all of his politics, but that doesn't matter either. - Woknblues, on 10/11/2007, -0/+1nobody is talking about tuition "on average" here. the same can be said about American schools. California State Universities average yearly tuition is $7,446 per year (undergrad level). But, if you ever went to college, you know that tuition is only a part of the cost.... Now, when talking about a medical career and advanced studies/ JDD, that all goes out the window. Dental colleges that I have looked into charge 50,000 and up. My GF is looking into DVM schools and they are about the same for the upper levels. Either that or be brilliant and lucky enough to have a 4.0 and 1500+ SAT........
http://www.universityofcalifornia.edu/admissions/payingforuc/costs.html
Try getting into UBC Medicine...... Look at your yearly costs.... (I am Canadian by the way, so don't be too defensive) - misterdiggles, on 10/11/2007, -0/+1This only works if your salary keeps up. I don't think salaries are keeping up.
- wuwei101, on 10/11/2007, -0/+1Inflation. If you have big student loans inflation is your friend. It's like this:
Say you owe 100,000 USD. You are paying that back with money you earn now. If the dollar loses value, i.e. inflation occurs, then the money you pay back to your loans is worth less. So for example, in 10 years 1 dollar is worth , say 50 percent of what it's worth today. That means that effectively you are paying back less.
If you have big student loans, inflation is your friend. It effectively lowers your debt. Remember that the next time you hear a politician talking about stabilizing inflation. - slezzzter, on 10/11/2007, -0/+1The reason student loans have such high interest rates is because they are unsecured debt. Therefore, you need to compare those rates against other unsecured debt, like credit cards.
The new bankruptcy laws have changed this slightly, where credit card debt can be bankrupted away, student loans cannot. However, student lenders still cannot seize real property from the borrower.
Money is expensive. If you force private companies to charge low interest rates, the market for investment into students will dry up. So which is worse? Expensive money or no money at all? Remember that all loans are a form of investment. The money loaned came from someone else willing to take a risk to obtain a reward, not some greedy corporation. Some real person. - Woknblues, on 10/11/2007, -0/+1well, since there are only 8 private universities in Canada, let's be fair and say that if Canada had a population equal to the United States, and a corresponding number of private university institutions, that they just might have a similar looking discrepancy in cost of attending said private institutions....
http://en.wikipedia.org/wiki/List_of_private_universities_in_Canada
"unlike the USA where going to a private university will cost 10 times as much as a community college." comm college is always cheaper
edit: my comment "if you ever went to school" was poorly worded by the way, I did not mean to imply that you had not - Woknblues, on 10/11/2007, -0/+1@nebfran
where the heck are you going for 34k a year? never seen it that cheap. good on ya. - elizakan, on 10/11/2007, -0/+1There are two types people in the world: borrowers and lenders. Most are not the latter, which rule the former. The rich get richer and the poor get poorer. This has been society's M.O. since the dawn of time. My *money* is on the fact that this will not change.
It's just too bad I was not that extraordinarily wise at 18. I mean, who was?! We all were told to go the good life, that only higher education was promising. And we all got screwed (well more than not). If I had the option, I don't know who I'd sue first exactly: my parents for not knowing, my high school for not teaching, my college for not enlightening, my bank for not giving a f&#, my government for not regulating, society for not putting up a fight, OR me, for even TRUSTING one of them??! I mean, where does the *buck* stop exactly?! This is gonna take years in therapy :( -
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