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#1807993 - 04/25/13 03:45 PM Student Loans - A perfect storm?
buggs Offline
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#1808018 - 04/25/13 04:11 PM Re: Student Loans - A perfect storm? buggs
Sound Tactic Offline
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The Federalizing of student loans 1) artificially inflates the tuition costs of higher education and 2) puts the Fed Gov't at unnecessary risk.

12% of the loans are 90+ days delinquent, that is insane.

Here are the major points of the article with my opinion.

Quote:
Reasons for High Levels of Student Debt


Because the rate is set too low, and with a poor economy it makes it more likely to stay in school longer because of a weak job market.

Quote:
Why Are Tuition and Fees Rising So Fast?


Because the student loan rate is not set by the market. The same thing happened to housing 4 years ago.

Quote:
Third, the federal government’s involvement in providing financial aid to students may have led to unchecked growth in college costs. Some critics have drawn a parallel between student loan debt and subprime mortgage debt. They believe that a college education, like homeownership before the financial crisis, is increasingly viewed as a social good—but one that could quickly become a liability. And the maximum federal loan amount available to students continues to increase, underpinning fear of the size of the potential liability: As of 2012, dependent undergraduate students can borrow up to $31,000; independent undergraduate students up to $57,500; graduate students up to $138,500; and students in certain health-professional programs up to $224,000.7


ding ding ding we have a winner, but this should have been the first reason.
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#1808038 - 04/25/13 04:34 PM Re: Student Loans - A perfect storm? Sound Tactic
Bankster Offline
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No one is holding college's accountable for the rising costs. This past year, the Governor of PA proposed miniscule cuts (around 2%) in funding for the state universities. Penn State, the biggest benefactor of course cried the loudest. And of course PSU's first response was, 'now we'll have to raise tuition to cover the decrase', which made Gov Corbett enemy number 1 to misguided college students and PSU people. Smartly, Gov Corbett replied, "what was reasoning then for increasing tuition in each of the past 15 years?"

These schools are out of control. They're spending money like the government.

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#1808043 - 04/25/13 04:40 PM Re: Student Loans - A perfect storm? Bankster
Sinatra Fan Offline
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And one of the reasons why they are out of control is because they could always depend on a steadily increasing flow of federally subsidized student loan assistance. As long as the students could keep borrowing the money, they really didn't feel the pinch of the rising cost.

Ever wonder why a diploma is referred to as a sheepskin? 'Cause they've been fleecing you for years! smirk
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#1808047 - 04/25/13 04:48 PM Re: Student Loans - A perfect storm? buggs
Retired DQ Offline
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laugh @ SF!
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#1808140 - 04/25/13 06:18 PM Re: Student Loans - A perfect storm? buggs
MyBrainHurts Offline
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My kids graduated from college in 2005 and 2008. Last night, a story about rising college costs prompted us to look up the current cost. If my kids were going into the same schools next fall, I don't know how we'd ever afford it. I couldn't believe how much the cost had gone up.
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#1808149 - 04/25/13 06:29 PM Re: Student Loans - A perfect storm? buggs
DD Regs Offline
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I know what you mean, I would love for my kids to go to my alma mata, but it now cost for one quarter what it cost me to go 4 years.

I am highly recommending our local community college for all the mundane stuff (english, science, lit, history, etc) then transfer to what ever school they want their degree from for their major.
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#1808213 - 04/25/13 07:42 PM Re: Student Loans - A perfect storm? buggs
cheekEE Offline
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I had a discussion with my daughter last night that she is going to have to go to school PT and work FT in order for me help her out. She is going to an off-campus branch of a state university to complete the most of her classes.

It really stinks becuase you don't want your kids to start off life with a ton of debt but at the same time you can't bankrupt yourself.
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#1808215 - 04/25/13 07:47 PM Re: Student Loans - A perfect storm? buggs
DD Regs Offline
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AMEN, I see too many kids coming in fresh out of school with over 100k in student loan debt. shocked

I was lucky and made it out with $6500 in school loans. I can't imagine the feeling of debt.
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#1808220 - 04/25/13 07:49 PM Re: Student Loans - A perfect storm? buggs
basilring Offline
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The cost of a college education is ridiculous! I am finishing up my batchelors degree (since I left school before I completed it the first time - don't ever do that!).

The amount of debt I have incurred is RIDICULOUS! If I continue on and get my masters, I will never get that back in my job for sure.
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#1808221 - 04/25/13 07:51 PM Re: Student Loans - A perfect storm? buggs
cheekEE Offline
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::flexes:: No student loan debt. cool I mean...I had to go PT and it took me twice as long as everyone else but I didn't have to make any payments when it was all said and done. LOL

I've been working in our Mortgage dept for a month and I can't believe the amount of student loan debt that parents are carrying for their kids!
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#1808223 - 04/25/13 07:51 PM Re: Student Loans - A perfect storm? basilring
cheekEE Offline
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Originally Posted By: basilring
The cost of a college education is ridiculous! I am finishing up my batchelors degree (since I left school before I completed it the first time - don't ever do that!).

The amount of debt I have incurred is RIDICULOUS! If I continue on and get my masters, I will never get that back in my job for sure.


Which is why I have not gone back to school.
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#1808260 - 04/25/13 08:52 PM Re: Student Loans - A perfect storm? cheekEE
waldensouth Offline
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Originally Posted By: MonkEE
::flexes:: No student loan debt. cool I mean...I had to go PT and it took me twice as long as everyone else but I didn't have to make any payments when it was all said and done. LOL

I've been working in our Mortgage dept for a month and I can't believe the amount of student loan debt that parents are carrying for their kids!


Ditto!
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#1808442 - 04/26/13 03:02 PM Re: Student Loans - A perfect storm? buggs
doobydoobydoo Offline
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wait... if this is like the subprime mtg crisis, should i stop paying my student loans now and wait for the bailout?

I mean I can pay them - paying more than minimum payment, but its terribly inconvenient
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#1808478 - 04/26/13 04:09 PM Re: Student Loans - A perfect storm? buggs
Bankbb1, PITA Offline
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The Sovereign State Of Oklahom...
::Looks for inconvenience clause in loan disclosures::
I'm sure there is one in here somewhere....... laugh
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#1808484 - 04/26/13 04:18 PM Re: Student Loans - A perfect storm? buggs
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#1808501 - 04/26/13 04:48 PM Re: Student Loans - A perfect storm? buggs
Pale Rider Offline
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So how many of you regret getting student loans or are reconsidering not supporting your children as they consider college and the cost?

Average student loans for the 2013 graduate are in the range of $25,000. Is this not a good investment when considering the potential average lifetime earnings of someone with a college degree versus someone with a high school diploma or GED cert?

We are not all going to be a Gates, Jobs or Limbaugh!
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#1808505 - 04/26/13 04:52 PM Re: Student Loans - A perfect storm? buggs
manimal Offline
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#1808520 - 04/26/13 05:05 PM Re: Student Loans - A perfect storm? buggs
edAudit Offline
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You are here
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#1808530 - 04/26/13 05:11 PM Re: Student Loans - A perfect storm? Pale Rider
hobot Offline
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"So how many of you regret getting student loans or are reconsidering not supporting your children as they consider college and the cost?

Average student loans for the 2013 graduate are in the range of $25,000. Is this not a good investment when considering the potential average lifetime earnings of someone with a college degree versus someone with a high school diploma or GED cert?"

Agree - The debt was worth it. That said, I am trying to ensure my kids have an investment in it too -- I don't think it is a good idea for the parents to pay some (half?) then the student get loans and not pay anything. Anyone can have a part-time job during high school and college and help out -- help themselves out!

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#1808563 - 04/26/13 05:34 PM Re: Student Loans - A perfect storm? buggs
califgirl Offline
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Not everyone needs to go to college. A good plumber or electrician probably makes more than your average liberal arts degree graduate.

I'm child-free so I'm spending my money on me. smile
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#1808591 - 04/26/13 06:01 PM Re: Student Loans - A perfect storm? buggs
#Just Jay Offline
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Student loans of 25k are not that much... most of those same kids wouldn't flinch buying a new car at that price and paying it off in 5-6 years.

My folks provided zero for college. If I wanted it, I had to do it one my own with my own resources, which was fine with me. I finished school with 15k in loans, got a sales job in banking, worked my arse off taking full advantage of the bonus and incentive program the employer offered, cheap loan rates at the time (which were over twice what they are today), rate discounts provided and had them paid off in under four years.

No regrets. I make far more now than if I had not gone to college and have many more doors are open to me had I not.

While I agree college is not for everyone (just as tech and vocational schools are not for everyone too), when a degree is pursued intentionally and smartly, it is a worthwhile investment in your future. I feel it is silly to consider it anything less.
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#1808592 - 04/26/13 06:05 PM Re: Student Loans - A perfect storm? buggs
HappyGilmore Offline
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Pulling people out of the ditc...
many jobs in the tech sector don't require a college degree, while traditional jobs (such as banking) not having one is a burden that takes years to overcome...if you ever can. many jobs are still closed to those without a degree.

there are many people working at jobs well below their level of education, a college degree is no longer a guarantee of a well paying job, or even a challenging one.

I know plumbers and contractors that make deep into 6 figures...
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#1808649 - 04/26/13 07:12 PM Re: Student Loans - A perfect storm? buggs
Bankbb1, PITA Offline
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The Sovereign State Of Oklahom...
I suppose I could have a nicer house, a few more motorcycles, a bigger truck (no such thing as too big) and a faster car.....
Nope, I'm ok with having spent it on the kiddos. Its just what worked for us. Not saying its the right or wrong thing for everybody.
If nothihng else, they kin type better thn me! laugh
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#1808694 - 04/26/13 07:46 PM Re: Student Loans - A perfect storm? buggs
buggs Offline
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College is way overrated by HR recruiters. I need to get H.R. To take "college degree" out my job descriptions. (Yeah, like I'm gonna win that argument.)

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