Published: Tuesday, April 22 2014 5:45 p.m. MDT
Why on earth do we have $1 Trillion in outstanding student loan debt?
C'mon people. Get a job and work through your undergrad years. Instead of 4
years, graduate in 5 and pay as you go.Their a just a few
professions, where taking out a loan would make sense. But, those programs take
10+ years before you enter your profession. For example a doctor, dentist...if
you had a profession that actually will hire you such as an Engineer. Then maybe
it makes sense to take 5 classes a semester and live off of loans....But, for the 95% of the other students; the schools lie when they tell you
that you're starting pay for any degree is $60,000-$80,000. They're
very misleading.My undergrad professors kept telling me the median
wage for my degree. I did some fact finding, since I know median doesn't
mean starting wage. Yep, the starting wage was closer to $15,000-$20,000. But,
I paid cash to complete the degree.At least they were honest in
saying, if you really wanted to do something with the degree you'll need a
minimum of a masters and move on to doctorate.
Who hasn't became accustomed to use credit, [other peoples money]. I had to
wake up and grow up and go through the mind boggling experience of rearranging
my brain on how I use money.
I think of Shakespeare's advice something to the effect "..neither a
borrower nor a lender be...". Too many young people think a loan is some
kind of "free money" and the future in which the debt is to be pain will
never come. Others fail to read the fine print, only thinking of the money.
Both philosophies are a hard way to learn a lesson in finance.I and
many of my classmates worked our way through college, and or earned GI Bill
help. Folks, College is not for everyone, regardless of what is
being sold on capitol hill and from the board of regents. Vocational education
can provide an education specific to a field with real time teachers and a
better chance of a job in a field presuming the student puts in his/her effort
and time. Good budgeting and a sense of frugality and independence will provide
a comfortable life style.No one has it all. Looking on
the bright side, once the in-debt students work their way out from their self
imposed mountain of debt, they will have learned a good lesson in finance and
life. All is not lost, hopefully.
Not paying off your student loans is like stealing from the tax payers.Our national leaders do the same thing with its seventeen trillion dollar
debt, and all expense vacations.Pathetic.
Students from middle-class families need student loans and part-time jobs to
attend college. In Idaho, the Republican-dominated legislature cuts college
funding every year and the colleges raise tuition 4-6% every year. Middle-class
parents can't fund the entire cost of their kids education, so students
need student loans and part-time jobs to get a college education. It's the
classic middle-class squeeze.
I think Dave Ramsey's advice is solid to never get (or for that matter be)
a co-signor for a loan. Why? Because there is a reason if a lending company is
making you get a co-signor. They don't trust you to pay back the loan by
yourself. And guess what? If the lending companies were wrong, they would have
changed their policies a long time ago. Reality is, probably everyone who takes
out a loan with a co-signor is confident that the co-signor won't have to
bail them out but it happens. If you can't get a loan without a co-signor,
you probably shouldn't be taking out a loan.
@Liberal Ted"Get a job and work through your undergrad years. Instead
of 4 years, graduate in 5 and pay as you go."Everyone insists
that no, we can't raise minimum wage, it's not meant to be a working
wage, just something for teenagers to get their foot in the job market. Okay...
but you all expect these people to then get enough to get by AND pay for
Liberal Ted,The reason we have $1 Trillion in outstanding student loan
debt is that the federal government backs student loans. As a result, colleges
can charge whatever they want and students will be forced to take out
federally-backed loans. When/if the student defaults, the school still gets
paid, but it is the taxpayers that are left with the bill.The first
step to resolving the student loan crisis is getting the government out of
education - and that goes for ALL education (K-12 included).By the
way, I paid may way through undergrad with cash. However, I subsequently went
to law school and was required to take out over $150k in student loans. There
aren't too many people that can pay a $35k/year tuition fee as you go.
WHAT? The fine print says they borrower has to pay off the debt if the cosigner
dies?Instead of whining about how "unfair" this is, the
borrowers should (a) never have signed up for the loan if they could not live
with the terms, or (b) avoided taking out a loan in the first place.Sorry, no sympathy at all for these folks. But, I do have a LOT of sympathy
for us taxpayers who will be getting hosed by having to pay off all the
defaulted loans.There is NO reason for the federal government to be
in the student loan business in any form at all. Stop it now! If a person does
not qualify for a student loan from commercial sources, then they need to work
and save (foreign concepts to too many people) or perhaps not go to college at
all. Plenty of "real jobs" that pay well and do not require college.
See: plumbers, welders, car mechanics, etc.
Only the wealthy deserve to be educated.
I see the compassionate conservatives are out in droves today.
I was prepared to comment negatively on students trying to get
"off"/avoid responsibility of having to repay their student loans but
then I see that is not what the article talks about. I agree 100% that if you
take out a loan it should be repaid, in full, with interest. And, I also agree
that way too many students simply revert to a loan and seem to have the attitude
of the day of payment will never come. But....to be a college student and have
a relative/co-signer die and be expected to pay it back NOW is a raw deal. It
might be in the loan agreement but that's kind of cheesy. If the college
student could pay the money back immediately they wouldn't be asking for
the loan, would they?
@SchneeWorking a minimum wage job to help pay for school is better
than not workign a job because your unskilled labor isn't economically
worth minimum wage.When I was really young, what seemed to be
commonly portrayed was parents helping to pay for schooling. In news, stories,
cartoons and TV, even families that weren't so well off would make
sacrifices to help pay for children to go through school, and it never took
spotlight-it was always an incidental part of normal routine.My own
preparing for a family has been with the assumption that I'm going to help
pay for my children's schooling, because I've learned the importance
of setting people up for success. I want them to have more than I did and to
have skills and opportunities that I couldn't.Now for some
reason debt is seen as not only normal, but neccessary.
@ Ranch:Your anti-conservative, ultra-liberal attitude is evidenced
in your every article comment. Your sarcastic comment today about compassionate
conservatives actually demonstrates something significant in this case. Since most of the previous comments are about the need to repay the
loans and are made by people who are not disclosing their political ideology,
you are in essence indicating it's only conservatives who believe in fiscal
responsibility... either paying as you go or having a workable plan to repay
your loam once you graduate. It's called acting responsibly. On
the other hand you are strongly insinuating that liberals believe the opposite.
That students who take out huge loans should not be held accountable and
consequently should be given a free ride. That free-ride mentality is prevalent
among liberal democrats today. It's also much of the reason our already
huge federal deficit has risen over 40% since Obama came into office just over 5
years ago. And it's also one the primary reasons I could never
align myself with the democrat party. It lately seems to breed
irresponsiblity.at every turn. Even a superpower nation is not too big to
experience economic ruin.
Make every employer pay thirty dollars an hour, and we won't have to worry
about college.Obama starts to make sense.
To "Schnee" right now if you have a part time job paying minimum wage
that allows you to work full time during the summer, you can earn enough to pay
for tuition and books at the U of U, BYU, Utah State, SLCC, and UVSU. I am sure
the other state schools would be within that same price range too.
@Jamescmeyer"Working a minimum wage job to help pay for school is
better than not workign a job because your unskilled labor isn't
economically worth minimum wage."That's fine, it's
what I was doing when I was an undergrad. My point merely is just that college
is expensive and minimum wage only pays so much (as my 36k in student loans can
attest...good thing I started at a cheaper satellite school, had some
scholarships, and graduated a semester early...) so it's impractical to
think it's simple to just work and somehow have enough to support oneself
and pay for all of tuition/college expenses."When I was really
young, what seemed to be commonly portrayed was parents helping to pay for
schooling."That was the mindset my parents had, they're
covering half of the loans my sister and I end up with. The other half, 18k,
I'd paid off within 4 years of graduation.
"Not paying off your student loans is like stealing from the tax
payers."But refusing to pay to use federal land to graze your
cattle is patriotic?And NOT stealing from the taxpayer?The
hypocrisy is palpable.
@JoeBlow:How many ranchers east of the Mississippi river pay federal
tax for their grazing cattle?You approve of government using armed
men to take a citizens property?Sorry, but the head of the federal
governent taking hundreds of millions from tax payers for vacations, is worse
than a Neveda rancher not paying the feds.Pathetic!
Here's an idea: when students are required to have a co-signer on their
loans then provide life insurance, along with the loan, for the co-signor so
that the debt is paid should they die. It's a win/win. The student is
covered; the bank is covered and the insurance companies get to sell more
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