The Depth of the Student Loan Debt

[Kätzchen]

Originally Posted by Kobi

There is an article in the NYT today about the student loan debt topping 1 trillion dollars. Goes on to say 94% of students seeking a bachelors degree are taking out loans. The average debt is $23,000. The people actually repaying the loans is down to 38%.

But, what struck me most was the story of a 23 year old woman who had $120,000 in student loan debt for her bachelors degree in marketing. She owed $900 a month in payments. She was working 2 waitressing jobs, making $225 a week. Her mother, who cosigned the loans and is on the hook for them, took out a life insurance policy on her daughter...just in case.

The story highlights how many students and their parents are feeling misled by college financial aid people who they feel either downplay the actual payback costs, give odd and difficult to understand information about the actual payback, and/or over estimate the job opportunities/salaries which might be available to a student after graduation to justify the expense/debt.

We have all been led to believe a college education is beneficial for our future earnings. This was pretty much the reality in a rapidly growing economy and when jobs were not being outsourced for cheaper international labor. Kind of a different reality today.

Been a long time since my college days. Was a different reality, different economy, different cost of living, much cheaper educational costs, many more opportunities, and advanced degrees upped your income significantly mitigating the costs of any loans.

So, I am wondering what others experiences have been with student loans. Did you feel misled? Were you shocked by the pay back amount when you received it? Were the costs offset by wage increases? Anything else that sticks out in your mind about your loans?

Yes, I feel misled. I went back to school during the national crisis of the early oughts (2000’s), at a time when people were losing their life long jobs in sectors no one thought would sink during this crisis. There was also the housing crisis too, which tanked millions of home owners and left them with “landslide” of debt.

I thought back then that I could create a better life for myself by earning a bachelor’s and a master’s, as school fin-aid counselors led me to believe I’d find a way to create a better life for myself.

It didn’t turn out that way, at all. Instead I have a life time of horrific debt which got worse under the first reign of terror by T——p and his Education Secretary who assessed horrible interest fines on my school loan debt and my continued inability to make monthly payments which exceed my earnings, all-together.

Now, I should be able to “retire” from my work life, but I can’t at 65.5 years of age. And now, millions of us like me face more harrowing years of the same perpetrator who cooked his own books for years and is a felon who got was voted into power by people who have no clue what this next president will do to our country.

It’s truly sad, what has happened to us all who believed in the idea that upper education would allow us to create a better life for ourselves.

You are missed Kobi. Thanks for your forum thread and I’m sorry I didn’t find it until today.