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I suppose the 14% figure is a bit misleading when they are taking into account recent college graduates.

 

Then again, a lot of student debt is being accumulated these days by students that have zero concept of ROI of the price of their degrees.

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I'll be the first to say I do not know much about student debt, but I remember years ago a friend was in college and was talking about how he took out school loans to buy a new truck.

 

Said the school loans were like 1% interest which was better than any car lot.

 

I don't know how much truth there is to that but it would seem things like that are a good way to skyrocket student loan debt.

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I suppose the 14% figure is a bit misleading when they are taking into account recent college graduates.

 

Then again, a lot of student debt is being accumulated these days by students that have zero concept of ROI of the price of their degrees.

$200,000 debt for $35,000/yr job.

 

Illusion: "Oh heck it'll only take me 6 years to pay back!"

 

Reality: "Maybe I should fake my death"

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I suppose the 14% figure is a bit misleading when they are taking into account recent college graduates.

 

Then again, a lot of student debt is being accumulated these days by students that have zero concept of ROI of the price of their degrees.

 

Agreed. Getting degrees for jobs/careers that don't exist in plentiful numbers.......or not at all anymore ; or ..........that pay $15-$20/hr ...................

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I'll be the first to say I do not know much about student debt, but I remember years ago a friend was in college and was talking about how he took out school loans to buy a new truck.

 

Said the school loans were like 1% interest which was better than any car lot.

 

I don't know how much truth there is to that but it would seem things like that are a good way to skyrocket student loan debt.

That IS happening; how are the kids taking all of those fancy Spring break trips to the Bahama's, Mexico and beyond.. a lot of "student loan" is being spent on NON educational purposes. I suppose one will argue that a student needs a way to get to school, so this is how they rationalize 'buying a car' with student loan funds.... $100k of debt is not unusual these days. Very sad.

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I suppose the 14% figure is a bit misleading when they are taking into account recent college graduates.

Then again, a lot of student debt is being accumulated these days by students that have zero concept of ROI of the price of their degrees.

$200,000 debt for $35,000/yr job.

Illusion: "Oh heck it'll only take me 6 years to pay back!"

Reality: "Maybe I should fake my death"

 

Exactly. Slave for decades to poor choices made over a handful of years.

Even I wish I would have taken transferable classes at the nearby community college to save thousands per course.

 

 

I suppose the 14% figure is a bit misleading when they are taking into account recent college graduates.

Then again, a lot of student debt is being accumulated these days by students that have zero concept of ROI of the price of their degrees.

 

Agreed. Getting degrees for jobs/careers that don't exist in plentiful numbers.......or not at all anymore ; or ..........that pay $15-$20/hr ...................

I know more than one person that's chalked up well over 80k in loans only to find out that their field of choice pays 30k for entry level and/or can't find employment and end up working at a call center while the loans sit there and acrue insane amounts of interest.

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when I finally finished university I had 100% more in SLs than my starting salary. This in part led to my BK; but it also led me to do an international job search, move 2,000 miles to a better job where my salary doubled in about 5 years. I never looked back.

Mobility is key.

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when I finally finished university I had 100% more in SLs than my starting salary. This in part led to my BK; but it also led me to do an international job search, move 2,000 miles to a better job where my salary doubled in about 5 years. I never looked back.

Mobility is key.

 

too often people feel afraid of moving away from familiar environs.

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when I finally finished university I had 100% more in SLs than my starting salary. This in part led to my BK; but it also led me to do an international job search, move 2,000 miles to a better job where my salary doubled in about 5 years. I never looked back.

Mobility is key.

too often people feel afraid of moving away from familiar environs.

And that feeling seems all to common these days.

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I'll be the first to say I do not know much about student debt, but I remember years ago a friend was in college and was talking about how he took out school loans to buy a new truck.

 

Said the school loans were like 1% interest which was better than any car lot.

 

I don't know how much truth there is to that but it would seem things like that are a good way to skyrocket student loan debt.

That IS happening; how are the kids taking all of those fancy Spring break trips to the Bahama's, Mexico and beyond.. a lot of "student loan" is being spent on NON educational purposes. I suppose one will argue that a student needs a way to get to school, so this is how they rationalize 'buying a car' with student loan funds.... $100k of debt is not unusual these days. Very sad.

 

Its not spring break that is breaking the bank. You should see all the new expensive housing that is built at universities these days. The universities are hesitant to build more low priced housing, so others fill the gap with fairly luxurious/expensive housing, with amenities like exercise equipment rooms, etc. Then the kids want their parents to pay for this, because this is the housing that is near campus, and they need the amenities, etc, etc. Since none can afford to work their way through college anymore, they get a loan for everything. At that point, its just numbers to the kids. They don't know the difference between $800 and $1200 monthly rents. Until many years later when it all comes due with interest.

 

Then there are all the mopeds/scooters on campus. And everyone needs a computer (ok, the prices on those are becoming trivial, but in the recent past they were significant, since you had to buy a fairly powerful laptop just in case you needed it for class software someday, etc. They market 'discount' bus/train passes to students (what is wrong with walking a few blocks?)...

 

In my day, you lived in dorms, then you moved out of the dorms into equally inexpensive shared living (which is dorm like in all but name). I still rent an apartment, but I can't afford the ones that most students live in. At least, not if I want a very comfortable retirement ;) And you know, I do like being very comfortable...

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I've always had an issue with students AND parents in some cases being able to use student loan money for non education items.

The CFPB has no problem with using the student loan excess over tuition and related proceeds for non-educational items. They even allow you to include this as "income" when applying for credit cards. Borrow and spend. It's a kind of pyramid scheme but with the CFPB's stamp of approval.

 

I like much of what the CFPB has done but this gem drives me nuts.

Edited by cashnocredit
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  • 3 years later...
On 8/11/2016 at 7:57 AM, hegemony said:

when I finally finished university I had 100% more in SLs than my starting salary. This in part led to my BK; but it also led me to do an international job search, move 2,000 miles to a better job where my salary doubled in about 5 years. I never looked back.

Thank god you didn't end up in Clive.  That I-80 commute is horrific.

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2 hours ago, cv91915 said:

Thank god you didn't end up in Clive.  That I-80 commute is horrific.

good stalking. Of course I moved from a place where real estate is dirt cheap to one where it has been boom/bust to boom. I was also in an industry where one has very little control of geography; but that is a whole different story.

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9 hours ago, hegemony said:

good stalking. Of course I moved from a place where real estate is dirt cheap to one where it has been boom/bust to boom/soon to bust . I was also in an industry where one has very little control of geography; but that is a whole different story.

FTFY Hege.....

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When I went to college in 2010, I had to do so using all grants, scholarships, and student loans. I went to a public, state university. I believe the "budget" for a year at the time was about $22k, which was meant to be all inclusive and was the number they used to determine student loan eligibility. About $9k of that was tuition and fees, $2k was books, and the rest was leftover. Realistically, I think I had about $4k leftover each semester. This was reasonable, IMO, in terms of how much I would need to cover my basic expenses at the time, like food, rent, etc. I still had to work a part-time job all through school just to make ends meet. When I graduated (after 4 and a half years), I ended up with about $32k in student loan debt. During school, I got about $20k in Pell grants and another $30k in scholarships. It was a pretty tough time financially because there are a lot of BS costs of going to school now, like special homework software, attendance tracking devices, classes requiring brand new textbooks that are updated every semester (my Spanish book and software was nearly $600), and various other unexpected costs. And don't get me started on housing at or near the school: they were charging $700 for one bedroom in a shared four bedroom apartment when I was in school. That means the complex is getting $2,800 per month for one apartment that is average in size.

 

While it is easy to jump to conclusions about the student loan crisis, I think people really need to put more effort into seeing what's really going on before rushing to judgment. Certainly, private and for-profit universities are a huge issue. They essentially have a blank check from our government to take as much money as possible from students. And many people unfortunately fall for the idea that they need to go to one of these places, sometimes paying $50k a year in tuition and fees for the same education you can get for around $12k a year at a public school.

 

I also completely agree about going to community college. You can go here in Austin to our community college for about $600 per class, plus books. You could probably pay for that working an entry level job and without borrowing any student loan money. Consider too that most university students spend the first 1 to 2 years completing "core" curriculum requirements, and you can easily start to see the savings over even a public 4 year school.

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I remember the undergrad years...there were three HUGE party times on campus...the week that checks were disbursed for Spring, Summer and Fall.  Hofeinz Pavilion was JAMMED with students sitting in sections as the Financial Aid personnel addressed several at a time with the basics and then people funneled down to the floor and went through a line of tables signing this or that, with a check being printed at the end of the line.  Then those same kids either went to a bank they had locally or paid a fee to have it cashed on campus.  

 

They were handing out checks for $5K like they were candy, and this was in an era where tuition and fees were still under a grand for an average full-time load...

 

Same thing was still going on when I moved to another college town in the mid-90's,  So the fiscal irresponsibility is hardly a new thing.  The only thing changed is how many zeroes are on the check...

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2 hours ago, centex said:

The only thing changed is how many zeroes are on the check...

And the growing expectation that someone else should pay back the money that was borrowed to fuel 4+ years of parties, car payments and Spring Break trips. 

 

Oh, and a couple of sociology courses.

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1 hour ago, cv91915 said:

And the growing expectation that someone else should pay back the money that was borrowed to fuel 4+ years of parties, car payments and Spring Break trips. 

 

Oh, and a couple of sociology courses.

 

Yup, and only a very few of the self proclaimed party animals majored in the hard sciences (math, chem, phys, bio) and fewer still in engineering. While some were all about the parties, most were stressed out and had to really put in a ton of work to earn their degrees. It was not easy even under the best of circumstances. At the time, parents had an expectation that you would put in the work.

 

I get it that students want to enjoy the college experience, after all, you'll only get one chance at it. But some took it just too far.

 

Especially in California where CSU/UC were alot of overseas students, their parents set very high expectations, because they were footing the bill for it, and students were extremely sensitive about disappointing their parents.

 

 

 

 

 

Edited by NorCalR1
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